Many Indian financial institutions, including banks and NBFCs, provide loans for purchasing used or pre-owned vehicles. However, getting auto finance for a used automobile purchase highly depends on the age and make of the vehicle you pick. When deciding whether to provide a loan on second-hand cars, financial institutions look at many factors, including the vehicle’s age and whether or not the model has been phased out.
When financing a used automobile, the vehicle’s age and the loan’s duration should be 8–10 years. It becomes more challenging to raise enough money to buy an older automobile. Choose a model year up to two or three years old.
Benefits of pre-owned vehicles in India
You can go for the best-used car to buy India since many auto lots offer quality vehicles at affordable prices. Here are some good arguments in favor of purchasing a pre-owned vehicle.
Depreciation is proceeding at a slow pace.
One major drawback of buying a brand-new vehicle is the rapid decline in its value after you’ve driven it home from the dealership. Early on in a vehicle’s lifespan, its resale value drops precipitously. Consequently, you may save much money in the long run by purchasing a used car instead of a brand-new one. Of course, a used automobile’s value will decrease with time, but the decline will be slower.
Excellent return on the investment
Used automobiles are more cost-effective and provide more utility than their brand-new counterparts. You may shop around for a used automobile, research its features, and choose the model that best suits your requirements after comparing offers from other shops. As you do so, shop for the best used car to buy India or lease rate and choose the dealer that offers it. Since there will be no commission to pay to any intermediaries in a private sale, the price may be lower. So instead, borrow money in the form of a car loan to buy that gently used automobile you’ve had your eye on.
The borrower can choose the loan amount, the length of the loan on second-hand cars, and the frequency of the EMI payments. In addition, postdated checks, online payments, and the ECS auto-debit service allow you to choose a payment method that best suits your needs and budget. The EMI is then automatically deducted from your bank account on a regular basis.
Make a positive impact on the environment
Buying a used automobile is good for the environment and your wallet since it reduces the amount of new gas that must be produced. In addition, most of a vehicle’s total lifetime CO2 emissions come from its production and first shipment; when you choose a used automobile, you are removing the two significant sources of pollution and reducing your environmental effect. However, before making a final decision, it’s wise to take the vehicle for a test drive on your own and have it inspected by a technician to be sure there won’t be any surprises down the road.
- Price reductions in insurance and licensing
In most cases, an automobile’s age determines its insurance premium. There is a direct proportion between how much you pay for your car’s insurance and how old it is. Therefore, used-car insurance costs less. Insurance premiums are discounted, and so are registration costs. Considering those vehicle registration fees are calculated as a percentage of the car’s sale price, saving money by purchasing a pre-owned vehicle is possible.
There should be as little paperwork as possible
It is possible to complete practically all steps of online applying for and closing on a second-hand car loan. The loan application is the sole documentation that must be submitted in person at a branch. The loan application procedure is quick and easy since even the needed documents are small in scope.
Moreover, to get behind the wheel of a car without spending as much as you would on a brand-new one, the best used car to buy India, consider purchasing a pre-owned one instead. Then, you can drive confidently, knowing that your car is holding its value and spending less on insurance and registration without sacrificing safety.