Where can you a buy a premium used car?

Posted by HeroFincorp on October 26th, 2017

The GST rates have benefitted the automobile industry. With a decline in the GST rate on cars, luxury cars and SUVs have become much cheaper as compared to earlier. If you have been planning to purchase a new car for a long time, this is the best time to make the move. You can be the owner of a premium used car at a much lower rate. The pre-owned car market is growing by leaps and bounds. It allows you to purchase a higher model of the car within your budget. Banks and financial institutions offer used car loans to help you make the deal.

Approach financiers and see what they have to offer for your used car loan and compare it with your expectations. One of the most important aspects of any loan is the down payment. Decide the amount and see how much the financier offers for the loan. The balance cost after deducting the down payment will be your loan amount and it will have to be paid in regular monthly installments. Clarify the amount you are willing to pay as down payment and see the rate of interest that the financier has to offer on the balance amount. The used car loan rates vary from institution to institution and range between 9.20% to 20%. Depending on the interest rate, you will be able to determine the monthly installment you will have to pay in order to repay the loan amount.

The process of application is quite simple with basic documentation required. It is a hassle free and transparent process. The documentation required for a used car loan includes application form, photographs, address proof, identity proof, income proof; this includes salary slip and ITR returns and the documents for the car you have chosen to purchase. The car documents include original registration certificate and a copy of the insurance policy. Many Banks and Financial Institutions offer a low monthly installment amount. Avoid opting for this offer and choose a lower interest rate instead. It will automatically reduce the amount of the installment. You can also try to get a rebate on the processing fees. In case you have a satisfactory credit history, the Institution may provide you with a discount or a rebate on your loan.

When it comes to taking a loan for a used car, it is essential to remember that not all used cars are eligible for the loan; a car should be less than 8 years old for it to be eligible for a loan. In addition, the documents and the condition of the car should be thoroughly checked before striking a deal. It is ideal to choose a car that is as good as new. Because the newer the car, the lesser maintenance and operating expenses. Scout the used car market and choose the car which is used to the minimum and is in the finest condition on the exterior as well as the interior. Take a test ride before the final decision.