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What Things should I Check before Taking a Pre-Owned Car Loan?
Posted on Tuesday, April 11th, 2023 | By IndusInd Bank
It is important to check certain factors such as type of car and documentation before applying for a used car loan. A second-hand car loan from IndusInd Bank comes with numerous benefits such as attractive interest rate & end-to-end service.
While many people want to own a car for the ease and convenience it offers, not everyone can afford the cost of a new vehicle. The need to have one’s own car has also been heightened by the coronavirus pandemic which saw a reduced dependence on public transportation for fear of catching the virus. Today, even though the pandemic may be on the wane, its economic ramifications are continuing, making a new car unaffordable for many. If you’d like to have your own car, but don’t have the budget for a new one, investing in a second-hand or used car could be a great option. With second-hand or pre-owned car loans being easily available, you may always fulfil your dream. But before you decide to go ahead with a car loan for an old car, here’s a list of things you should make sure to check.
Type of Car
The type and age of the vehicle matter when you apply for a used car loan. Do not get carried away and end up buying an older model just because it is fancier –a BMW for instance. It is best to opt for a car that is not more than 3-5 years old. Additionally, make sure to have a figure in your head about the amount you can invest in the car, including the loan amount you wish to apply for.
The Rate of Interest
Used car interest rates are typically steeper than new car loans due to the higher associated risk. Unlike a new vehicle, a used car does not come with the manufacturer’s guarantee. Again, factors such as age, type, and make of the car are important when it comes to a second-hand car loan. The duration of a used car loan generally ranges from 1-5 years.
Paperwork & Documentation
Make sure to thoroughly check all paperwork, including insurance and registration certificates. Also, the engine number and chassis number on the vehicle must match with the number mentioned in the registration certificate.
Do not neglect to check that the registration certificate is clear of any hypothecation to any bank or credit institution.
Time Duration for Loan Disbursal & Loan Amount
Disbursing a second-hand car loan usually takes banks some time as several things need to be checked – such as whether or not there are pending police cases against the car, or if the car has had any accidents or service issues. Also, keep in mind that the loan amount is typically sanctioned in accordance with the car’s market value as determined by the lender.
Pre-owned Car Loan from IndusInd Bank
Taking out a pre-owned car loan from IndusInd Bank comes with several benefits. These are:
- Attractive used car interest rate
- Minimal documentation with doorstep assistance, besides quick loan processing and disbursal
- Easy & flexible loan repayment tenure, ranging from 1-5 years
- Get finance up to 100% of the car value, subject to factors such as vehicle cost and credit parameters
- Enjoy end-to-end service from pre-owned car research to title transfer and deal closure
With basic paperwork, simple eligibility criteria for salaried and self-employed individuals, and pocket-friendly EMI options, a pre-owned car loan from IndusInd Bank ticks all the right boxes. Apply today and bring home the vehicle of your dreams!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
