Nowadays, it is very easy to get a car loan to buy a pre-owned car of your choice. This loan solution helps you to buy your dream car with a lot of convenience. Moreover, a second hand car comes with other advantages such as no need for collateral, lower value, slow depreciation rate as well as low insurance rate. When you “Apply For Used Car Loan“ it will allow you to have ownership of pre-owned car with great financial deals.

Therefore, you can buy the car of your dreams without worrying about your financial health. Here, in this article we will guide you about how you can grab a best loan for used car:

Compare and choose the best lender: It is the first step to check which lending institution offers you best loan to buy your dream car. One can compare different lenders online or offline and conduct proper search before applying a loan to avail better interest rate. Generally, lenders expect a borrower to pay 20-25% of down payment and rest of the amount is to be repaid along with interest provided by the lender.

Selecting a wrong lender with high rate of interest and stringent terms and conditions might burn a hole in your pocket. So, it is very important to pick a lender who offer and negotiate the interest charges upfront.

Finalize the used car loan: Once you zero in on specific lender, get to know about your eligibility like how much loan amount you can avail, tenure for repayment, interest charges, processing fee as well as monthly installments to be repaid. Prior to all this, ask your lender if there is any facility to prepay or foreclose the loan because some lenders charge penalty in such scenario. One needs to be clean on their finances to avail the dream wheels.

Loan quantum: A second hand car loan comes with lower LTV ratio than the loans available for brand new cars. Else, depends upon the valuation of a pre-owned car because lenders tend to provide 70-80% value of the car price through their loan processing. It is advisable to make a higher down payment so that late on you won’t feel debt burden repaying the loan. A low loan cost will allow you surplus to save or invest better.

Apply for a loan: It is easy to get a loan these days and one can “Apply For Used Car Loan Online“ or offline. We are listing some of the basic documents that you need to submit or upload along with loan application. These documents include ID proof, residence proof, income proof, signed application form as well as slips of ITRs.

Get possession of your car: Once your loan gets approved, the seller or car dealer will get the price of car in their bank account within few hours. At the same time, a buyer can pay the remaining money as down payment to the seller and get the possession of car. However, ownership remains with lender until you repay the loan but there will be no restriction on the usage of car.