Last Updated on May 20, 2021 by MoneyVisual
The auto industry is undergoing rapid change and car prices are shooting up with each year. In other words, cars are getting costly each year, which makes them a very high-value asset for a common man. To add to the woes, a new car is one of the fastest depreciating consumer items in the world. A car starts to depreciate the moment it is driven out of the showroom. This is a bummer for an average middle-class person who wishes to own a car.
But, fortunately, the option to own a used car can fulfill the desires of the common man to own a car.
A used car makes more sense for first-time buyers and for those who lack enough money to own a new car. Talking about the entry-level segment used car in a good condition can cost you from Rs. 2lacs to Rs. 5lacs. Now, this is a huge amount for an average household income. But fortunately, there is an option of used finance which many banks and other NBFC’s offer. The option of used car loan is becoming more and more popular to their easy accessibility and also due to the fact that a used car loan be processed faster than the new car loan.
But there are some used car loan eligibility conditions which you should keep in mind before you apply for a used car loan.
For instance, Axis Bank offer used car loans starting from Rs. 1 lakh up to 85% of the valuation amount of the pre-owned car.
The axis bank offers used car loans for salaried individuals who are of minimum 21 years of age up to 70 years of age at maturity. But the individual must have a minimum salary of Rs. 2.4lacs per annum and minimum continuous employment of 1 year.
On the other hand, HDFC offers custom fit used car loans that come with feature like 100% financing on select vehicles, flexible repayment tenure, and pocket-friendly EMI’s so that you can afford your choice of car, the way you want it. However, HDFC bank provides loans to individuals employed in the private sector with a minimum annual salary of 2.5lacs per annum. Also, the used car loan is given to a person who has a minimum age of 21 years at the time for applying for a loan and should no older than 60 years of age at the end of the loan tenure.
Every bank and NBFC has its own terms and conditions and they charged car loan interest rates as per your previous credit history. Only full research can help you to get a better deal in the market.
Such loan schemes make it easy for a person to own their dream car at an affordable price. This means you can own an SUV for the price of an entry-level hatchback.
Here is How a Used Car Loan Can Make Your Life Simpler.
Get Your Dream Car Immediately
If you are in the need of a car urgently then unlike a new car you can get a used car immediately without waiting for weeks. Also, you do not have to save a lot of money compared to when you decide to buy a new car by paying off the full amount in cash. A used car loan is easy on your pocket.
No Dependency on Your Paycheques
You can take a used car loan any time of the day or month. You do not have to wait for the salary to be credited in your bank account to buy something you desire for.
Apply from Anywhere
Most of the banks and other NBFC’s offer the facility to apply for a car loan online from the comfort of your sofa. The online application process means that you do not have to visit the bank physically and stand in queues.
To sum, a used car loan is the best for those that want to own a car without having to spend too much.
Sneha Sharma is a writer currently associated with Droom Technology. She writes about various topics such as auto news, trends in the automobile industry, auto finance and so on. She has a prominent existence and well participation in different social media platforms.