How to Arrange Loan for Used Cars

Many of us prefer to invest in a second hand or used car once you get a driving license. It is always an advisable step to take. It is any time better to hone your driving skills with a used car rather than going for a new car.

The best part, now you can even avail of a loan for used cars. There are more and more of banks and non-banking institutions that are readily providing with loans for the same reason. We list down some of the things to consider applying for a used car loan.

Age of the car speaks a lot about it

When it comes to new cars, you can easily avail the necessary finance. However, the same cannot be said about a used car. There are a lot of parameters that are taken into consideration when zeroing upon whether to grant you a loan or not.

One such factor in used cars that plays a vital role is the age of the car. It is determined by certain factors such as the condition of the car, the number of kilometers it has been driven for, and the model of the car. Based on it the car determines the percentage of loan to be provided.

It comes with a higher rate of interest

The rate of interest levied from you depends on two factors. One is the condition of the car and second is your relation with the bank or the NBFC personnel. Based on both these factors you can avail up-to 70% of the value of the car as loan.

Get through an organised dealer

The number of people selling their cars and buying new ones has soared of late. Therefore, there is no dearth of getting hold of used cars. However, it is advisable to get through an organised dealer to make your car purchase. As the cars aren't made available to you after a good screening but also comes with financing facilities.

So get all the above mentioned things checked and avail of the loans for used car easily.