Buying a car is a huge step in your life. Whether it is your first car or a second car, it will always remain special. This is why you should never rush the decision and take your time. Choosing a car has become complex due to the given number of options in the market. However, if you have made up your mind that you want to buy a used car, you need to scout the pre-owned car market in your city. The used car industry is growing by leaps and bounds and it can be seen by the double digit growth that is reported. You can either buy the car from a dealer or from the pre-owned car market.
Scout the market and look for the available models. You need to take a test drive before you make a decision. With a test drive, you will be able to decide if the car is suitable for you or not. You will also be able to see if the engine, lights, brakes and other aspects of the car are functioning well or not. Take an auto enthusiast friend with you in order to make a well informed decision. Once you decide on the car you want to own, you need to look for lenders who will help you with the purchase. There are many financial institutions that offer second hand car loan at friendly terms.
In order to apply for the car loan, you will be required to make a down payment. The lender will not offer a loan for 100% of the amount of the car. Hence, you need to make a down payment of about 30% and the balance will be your loan. If you have excess cash on hand, you can make a higher downpayment and reduce the loan amount. Alternatively, you can also make the minimal amount of downpayment and utilize the loan. You need to fill up the loan application and submit relevant documents which include an identity proof, income proof, address proof and invoice of the car you intend to buy. If you have a good credit score, your loan application will be processed in no time. Remember to make the EMI payment on time in order to maintain the credit score.
With a second hand car loan, you can buy any car you want to. However, the car should not be more than eight years in age. You can choose any brand or type of car for your purchase. Compare interest rates before making an application in order to ensure that you are choosing the right loan and the right lender for your purchase. You can use the EMI calculator to estimate the amount of EMI payable on the loan. Simply provide the loan amount and tenure in order to get the estimate. It will help you decide if you will be able to manage the loan repayment on time. If not, you can ask for a longer tenure.
