Cars have a substantial role to play in everyone’s day to day life. Going to office, dropping off kids at school, taking care of everyday errands, and road trips with family and friends have all been made comfortable and exciting by having a car in the family.
Interestingly, customers are lining up to buy used cars. The popularity of used cars seems to be highlighted by the fact that dealers of used car markets have enjoyed 40-50% growth over the last couple of years compared to 3% growth experienced in the new car market.
However, it may not be possible for everyone to afford to pay in full for a used car. It is where a used car loan plays its part. The affordable interest rates and EMI options of used car loans are what enables people from all walks of life to have their own cars. The low equated monthly installments will not disturb much of their monthly budget.
Let us look at some features of used car loans that can make your life a lot easier.
How can a used car loan make your life easier?
No need to drain all your savings
A lot of people would not be willing to drain all their savings that they have been adding up for years at once into buying a car. Getting a used car loan helps you deal with this problem. Car loans can be repaid in equated monthly installments, without the need to pay in a lump sum. The affordable equated monthly installments can be paid without disturbing much of your regular monthly savings.
Affordable interest rates
Multiple lenders provide used cars loan at varying interest rates. The interest rate for a used car loan starts from an affordable rate of 12.5% pa. This way, you do not have to pay much additional interest and hence easily avail the loan without disturbing your finances. To understand better, let us take a real-world scenario. A used car loan amount of Rs.5 Lakh sanctioned for a tenure of 5 years comes with an equated monthly installment of approximately Rs.11,148 making it a viable option for people from all walks of life.
Loans for used cars are secured. In other words, used car loans are sanctioned against collateral as security. In case the borrower fails to repay the loan within the tenure, the collateral pledged can be auctioned by the lender to get the money back. Since the lenders already have a property of the borrower as security, they do not need much documentation, keeping the paperwork to a minimum. Approval of a used car loan is quite fast and straightforward. Once the applicant finishes submitting the required documents and identity proof along with the application for a used car loan, it only takes a day or two for the approval. Hence, no need to wait long to bring your car home.
Flexible EMI options
Some applicants may not be having regular paydays. Keeping this in mind, the used car loan lenders offer flexible equated monthly installments. Select the structured equated monthly installment plan that best suits your requirements. In case you are not able to calculate the exact amount of equated monthly installment that you need to pay every month on pen a paper, you can use a used car loan EMI calculator to do it for you. A lot of sites provide the online used car loan EMI calculator for the convenience of used car loan borrowers. They can get the accurate figure of equated monthly installment that they have to pay just by providing the details about the used car loan amount, tenure and rate of interest for the particular scheme of loan for a used car. It is also a great way to compare various plans of loans for used cars to find the one that best suits your needs.
No down payments
There are used car loan lenders in the market who offer loan schemes that do not require the need for a down payment. Hence, if you do not want to spend any money on down payments and want 100% financing for your used car then, you can get one by applying for a used car loan.