Getting a new car can be expensive, and it doesn’t end there. New cars also have higher finance rates than used ones. If you’re looking to save money and get an affordable car, then your best bet would be to look for one from the second-hand market. Finding a used car can be challenging though. There are many people who prefer buying new cars as they know that the prices of these vehicles will not increase after a certain period of time. Even if you’re looking to buy a reliable used car, finding one won’t be easy. And financing can be another big issue when purchasing a used car. In this post, we’ll cover everything you need to know about how to get a used car loan in Delhi.
How to Get a Used Car Loan in Delhi?
The first step in getting a used car loan in Delhi is to find a bank or a financial institution that offers these facilities. The process of getting a loan is the same for all financial institutions. Once you’re done with this, you can start the process of finding a suitable car. Depending on your purpose, you can choose a car that meets your needs, has the right value, and is available at a reasonable price.
Before you apply for the loan
Before you start the process of getting a used car loan in Delhi, you need to make sure a few things are in order. First, you need to be sure that you can repay the loan. It’s not wise to get a loan if you don’t have a plan to repay it. Next, you need to make sure that the car you want to buy is available for sale. Once you’ve found a used car that you want to buy, you need to make sure the seller is willing to part with this car. You can run a few checks online to find out whether the seller is genuine or not.
Know the lenders and their requirements
There are a number of lenders that offer used car loans in Delhi. However, before you apply for one, it’s best to understand the requirements of all these lenders. The first thing you need to understand is the difference between a wholesaler and a dealer. Wholesalers do not sell cars at all, they buy cars from dealers, auction them off, and sell them to you. Wholesalers have higher rates than dealers as they are not in the business of selling cars. However, you need to be careful while dealing with a wholesaler. When it comes to applying for a loan from a lender, the process is similar for all lenders. First, you need to understand the process of a standard loan. Next, you need to understand the cost of a loan, and lastly, you need to understand the requirements of the lender you’re applying to.
How much can you borrow?
All lenders have a certain amount that they approve for loan amounts. This amount is usually decided by the lender based on their experience. The amount you borrow will depend on how much you want to borrow, your credit score, and the lender you’re borrowing from. When you decide how much you want to borrow, you also need to consider how much you can actually repay. Depending on the lender, the repayment schedule can vary from one month to seven years.
Repayment schedule and interest rates
As we discussed above, the repayment schedule will depend on the lender you are borrowing from. The repayment schedule will also depend on the type of loan you’re taking. There are two types of loan and each has its own advantages and disadvantages. The first is the standard loan, which allows you to make monthly payments for one year. After one year, you’ll have to make a single payment to repay the amount you have borrowed. In case you can’t pay it off, you’ll have to pay interest on this amount. The second is the flexi personal loan, which allows you to make payments as and when you want to. The lending institution will decide on your payment amount according to your credit score.
Repossession process and why it’s important
One of the most important things that you need to know about getting a used car loan in Delhi is the repossession process. This is the process through which your bank will get the car back if you don’t repay the loan. In most cases, the bank or lender will go to the car owner’s home or workplace and repossess the car. You will be given a certain amount of time to repay the loan, otherwise, the bank or lender will repossess your car. If you don’t want to go through this process, then you need to make sure that you repay the loan on time.
Also Read: Getting A Personal Loan In Delhi To Meet Your Medical Expenses Was Simpler
Compare Used Car Loans Online
|Lender||Loan Amount||Interest Rate||Loan Tenure||Processing Fee|
|HDFC Bank||Up to 85% of the value of the used car||11.50% to 17.50% p.a.||1-7 years (the age of the car should not exceed 10 years by the end of the loan tenure)||Rs.5,000 or 2% of the used car loan amount, whichever is lower|
|ICICI Bank||Up to 80% of the value of the car||10% to 17.65% p.a.||2-3 years||Rs.6,000 or 2% of the used car loan amount, whichever is lower|
|TVS Credit Services||Up to 85% of the value of the used car||13.1% to 15% p.a.||1-5 years||Rs.999 + GST|
|State Bank of India||Up to 2.5 times your net annual income||12.60% p.a.||1-5 years||0.5% of the used car loan amount + GST (minimum Rs.450 + GST, maximum Rs.9,100 +GST)|
|Sundaram Finance||Up to 85% of the value of the used car||12% to 14% p.a.||1-3 years||Rs.2,500 (a one-time processing fee)|
Wrapping up: Is getting a used car loan worth it?
Getting a used car loan in Delhi is not an easy task. You need to be extremely careful while choosing a car, as there are many scammers in this business. You need to be extra careful while dealing with a person who wants to sell you a used car and make sure the car you are buying is reliable and has a good value. Once you’re done with all these checks, you can go to the market and find a used car that suits your needs. After you find a car, you can go to a lender and get a loan. Ever since the automation of vehicles became popular, the demand for used cars has grown.
Also, you can apply for an instant personal loan with up to Rs. 15 lakhs at a competitive interest rate Buddy Loan to buy a used car without any hassle!