The Benefits of Buying a Second-hand Car on an EMIBuying your car is a dream for many but finding a car that fits your budget and your needs is not an easy task. With the growing industry of second-hand cars. The demand for second-hand car loans is also increasing. As the prices of automobiles and fuel are rising, people are switching to buying second-hand cars on EMI. The option of buying a pre-owned car is much more of a pocket-friendly option compared to buying a new car. In this article, we will discuss the benefits of having a second-hand car on loan and how you can avail of finance for your dream car.
Checking Your Eligibility
Nowadays, getting a loan is not a big deal. There are numerous options available for you in the market where you reach out to lenders and avail of a loan. But before applying, you must check your pre-owned car loan eligibility so that you can avail loan hassle-free. The eligibility can be checked easily through google search.
Benefits of Buying a Car Through EMI
Below are the benefits of buying a car through EMI:
If your credit history is good, you may be able to obtain a used auto loan and finance it up to 100%. According to the verification, the lender will grant you financing.
Compared to a loan for a new vehicle, a used vehicle loan is less expensive. You can choose from a wide range of banks or NBFCs to secure a loan. Lenders currently offer very favourable interest rates, which will make it easier for you to decide on a vehicle.
Factors That Affect Loan Interest Rates
Credit History: The credit history of an individual has a significant impact on the interest rate offered to a borrower. This is also one of the important factors for pre-owned car loan eligibility.
Type of Vehicle: The type of vehicle will decide the amount you need to borrow which will also affect your loan interest rate.
Tenure of The Loan: As a longer tenure will cost you more in interest, you should choose a shorter EMI period. Although the long-term will help you pay fewer EMIs, you will end up paying more in interest because of the longer duration.
Nowadays, getting a loan for a used car is simple and convenient. You can submit an application for a loan while at home. The process is straightforward and can be completed online at the lender’s website.
Slow Depreciation Rate
A new car begins to lose value the instant you drive it out of the showroom. After the acquisition, the market value of an automobile decreases by roughly 20% every year. This demonstrates how quickly a new car’s value is lost.
Due to market demand, certain cars also lose some of their value. By choosing a second-hand car on EMI rather than a new car, you can avoid your car’s depreciation. When you buy a used car, you will receive a vehicle whose worth has already been reduced.
Avoiding the Extra Charges
You must pay a registration fee and numerous additional fees when you purchase a new vehicle. For instance, RTO fees, road taxes, etc. It will also be easier on your budget if you purchase a used car because none of these fees are due because they have previously been paid.
Buying a second-hand car on EMI will help you in many ways as mentioned above. Additionally, you’ll be able to save money and do your part for the environment. Taking into account all of these factors, you must also go for a test drive and have the car inspected before buying it to avoid any inconvenience later.