Buying a used car is a smart decision, particularly now, when people have to follow social distancing norms to contain the spread of the coronavirus. Given the number of options available in the market, it is ideal to invest in a premium used car. The double-digit growth of the used car market is proof that consumers are keen on buying a used car as compared to a brand new one. And since there are many pre-owned car dealerships in the market, you have the option to choose a car of your choice. If you are worried about the money, you can apply for finance for used cars.
Here are a few things you need to keep in mind while buying a used car
Find the right car dealership
Leading financial institutions in the country offer a loan for the purchase of used cars. However, while buying, you need to keep in mind the age of the car. It should not be more than eight-years old. Picking a vehicle that is in a good condition will reduce the cost of maintenance, making it easier for you to use the car for a few years down the line. The first place to look for a used car is at the car dealership. You will find several models to choose from. Official dealers have quality cars and are more trustworthy. However, if you cannot find the car of your choice with the dealer, you need to head to the pre-owned car market in your city, where you will find hundreds of options.
Take a test drive
Before you zero in on a used car, you need to take a test drive. Ask an auto enthusiast friend to join you. It will help make the decision easier. While driving, you need to look at how the car performs in terms of engine, brakes, lights and gear. The drive should be smooth and without problems. You do not want to invest in a car that require maintenance from the day one. Hence, a test drive is important. After you have decided on the car you want to own, you need to contact the lender for a loan.
Keep funds ready for down payment
It is important to remember that no lender will offer 100% funding for the purchase of used car. You will need to make a down payment before the loan application is processed. Different lenders have varying down payment requirement that you need to follow. You can also make a higher down payment if you have excess funds on hand. Once the down payment is complete, inform the lender about it and have the loan application processed.
Have the paperwork ready
In order to make an online loan application, you simply need to fill up the application form and submit documents of identity proof, address proof, income proof, down payment proof, bank statement and ITR. If you have a good credit score, the loan application will be processed in no time. It helps to understand the terms and conditions of the loan thoroughly before you sign on the dotted line.
Compare the interest rates
Choose a lender with low interest rate and flexible repayment tenure to ensure that the loan is repaid in due time. You need to compare the interest rates offered by different lenders and go with one that suits your pocket best. A low interest rate means low EMI and low monthly outflow. Thus, repaying of the loan will become an easier. Use the EMI calculator to get an estimate of the EMI payable on the loan. The calculator is available online for free and is easy to use. All you need to do is provide the loan amount and tenure to get a quick estimate. You can change the inputs until you reach an optimal output. The calculator will help make the right borrowing decision.
Prepare a repayment schedule to ensure timely payment of dues. If you think that the EMI amount is too high, you can ask for a longer tenure and reduce the amount. The process of loan application is simple and hassle-free. You do not need to visit different lenders in person to apply for finance for used car. You can get detailed information from the comfort of your home. Drive your car home with pride and put an end to your worries about financing the purchase.