Purchasing a second hand car on EMI is a critical financial decision creating monthly repayment liabilities, albeit lesser than purchasing a new car. Nevertheless, as it creates a significant financial responsibility on the individual, availing a second hand car loan for vehicle purchase requires necessary planning.
Choosing a loan option wisely can definitely be a good start to planning your finances for a second-hand car loan. Below are thus curated the top features you might want to look out for when availing a second hand car loan.
Let’s start with the features.
High Financing Value
Depending on the vehicle’s make and model, even a second hand car can augment a high cost. It is thus better to look for a loan option that comes with high financing value, preferably in the funding range of Rs.50,000 to Rs.50 Lakh.
Loan Availability for Any Car Brand and Model
Availing a second hand car on EMI should also not be restricted to any particular brand or model, allowing financing for any vehicle that suits your preference and budget. However, it would be wise to go for the latest models as it would fetch a high resale value, and thus better chances of easy loan approval.
Financing at a High LTV
Whether it is a new car or a second hand car, financing its purchase involves making a down payment. The remaining amount is better known as the LTV or loan to value ratio, set as a percentage of the asset’s current market value. It is better to go for a use car loan with a high LTV of up to 90% so that your down payment requirement is restrict to the minimum.
Repayment Flexibility with an Extended Tenure
Borrowers should also take care to find a loan option that offers maximum flexibility in terms of repayment tenure availability. Long repayment tenure of saying up to 5 years can easily divide the total loan liability into smaller EMIs, making repayment affordable for used car buyers.
Simple Application with Quick Approval
Like any other loan option, a simple application procedure, preferably online, with streamlined processing and quick approval simplifies financing of a used car purchase. Some of the market-leading lenders bring the time taken for approval to as low as 15 minutes of application.
Minimal Eligibility and Document Requirement
A reduced eligibility and document requirement always works in the favor of a borrower. Allowing him/her to secure funding without meeting too many criteria. Some standard requirements include age, income, resident-ship, employment stability, etc. Thankfully, the best of lenders facilitate the purchase of second hand car on EMI for both salaried and self-employed individuals.
Once you have been through all these features, make a final lender decision based on the interest rate affordability available to you as it can typically determine the installments payable. Purchasing your second hand car on EMI should become easy if the financing is affordable as well as conveniently available.
Learn more about loans and finance from the official website of HeroFinCorp.