With car prices going up increasingly and cars losing value the minute they roll out of the showroom, the second hand car or the used car market is steadily gaining ground. With manufacturers launching newer models every few months, more and more modern cars are entering the second hand car market. Whether you’re buying a car for the first time or buying an additional set of wheels for your family, it makes sense to buy a second hand car rather than a new one. It will be way more affordable, as a used car will cost you a fraction of what a brand new car of the same make will. Plus, taking a second hand car loan will add to the convenience.
The many benefits of a used car loan
New cars take a major hit on depreciation as soon as they hit the road because by the time you get used to driving the car of your dreams, there’s a new version of it in the showroom already. Moreover, once you plan to sell it in future, it won’t fetch a good deal either! A used car in good condition will probably fetch you the same amount that you purchased it for, depending on the brand and the model. Not to mention, the easy availability of second hand car loans can make it even easier for you to drive your dream car home.
Read on to know more benefits:
Get your car home immediately –
Unlike a new car, you don’t have to wait for years to save money to buy a second hand car and then go through a long wait time to get behind the wheel. When you buy a second hand car, you can get one immediately. It’s a lot cheaper, and so, it’s easier for you to arrange for the down payment. And thanks to the easy availability and hassle-free processing of loans, you can drive your car immediately.
Flexible payment terms-
You can choose the loan amount and tenure as per your capability. The minimum and maximum amount differs from lender to lender but it is enough to cover the cost. Also, if you have a strong credit score, you can negotiate with the lender on the interest rate. There are a number of repayment options available, from PDC, ECS to auto-debit, where the EMI amount is debited directly from your bank account on a fixed date every month.
Reserve your savings for emergency –
When you buy a used car with the help of a used car loan, you need not break your bank or use your savings, as the loan is sufficient to cover the purchase cost. Moreover, you can always keep your savings aside for emergencies.
Great value for money –
Second hand car loans are an attractive value proposition as you can get a loan at low interest rates and you can easily repay it in easy installments. This way, your finances aren’t affected. Also, even if you plan to sell the car in a few years’ time, you still stand to gain.
Easy and hassle-free processing –
These days, most lenders offer online applications for used car loans, wherein you simply need to fill in the form online, upload the soft copy of relevant documents, and submit. The approval comes instantly, and after verification of the documents, the funds are transferred to your bank account within 24 hrs! So, you can get your car financed from the comfort of your home, with just a few simple clicks!
From certification, warranties to cheaper insurance and easy maintenance, a used car is certainly more economical than a new one. You can even get the most recent models from reliable second hand car dealers. And of course, the easy availability of second hand car loans won’t let you feel the financial pinch at all. Unless you are after that smell that is characteristic of new cars, a used car will easily cater to almost all your requirements.
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