Applying for a second-hand car loan is a simple and easy task because it needs less documentation compared to a home loan. Moreover, there is no extra collateral required against the former loan. The loan is secured against your car but make sure not to stretch your budget for buying a car.
A second-hand car is a good option if you have just learned driving or you’re a rookie. This way you can easily gain confidence and even test your hand before buying a new car. However, second-hand cars also come with a few downsides. They require replacement of batteries, tyres and certain worn out parts. However, if you get the servicing done on time and follow the manufacturer’s guidelines, your second hand car will give you optimal returns.
So, here are some important things to keep in mind when applying for a second hand car loan:
1. Decide Your Budget: It is good to set a budget and have a rough idea of what you can afford when investing in a used car. This way you may avoid overspending on a car. Also, keep in mind the cost of insurance and other costs when looking for funds.
2. Choose the Apt Car Model: After deciding your budget and second-hand car finance, you can start looking for the right car model. Do thorough research about car specifications to help you narrow down your search and finding the right car model.
3. Certified Pre-Owned Car: When buying a second-hand car, it is recommended to buy a certified pre-owned car. These cars are just similar to new cars, besides this helps you save a significant amount of money. Moreover, you get an additional extended warranty, as well as an authentic manufacturer warranty.
4. Inspect the Car: A person may enable you to get a car checked from a mechanic. However, a car dealer may not be interested. In such cases, be firm and don’t refrain from checking the car you’re going to pay for. You need to check every part of a used car, from batteries to its functioning.
5. Take a Test Drive: When buying a second-hand car, don’t forget to take a test drive, as it’s an essential part of purchasing a car. This gives you a proper feel of buying a car while helping you make a decision of whether to buy or not to buy the car.
6. Ensure the Documentation: You might be lured to buy a used car by knowing that it’s available for a less amount of money. But it could be stolen or may have other issues associated with it. That’s why you need to make a point to get the paperwork checked thoroughly when buying a used car.
7. Car loans: If you want to buy a pricey car model, you can apply for the car loan. Try used car loan EMI calculator to find out the best suitable car loan on a second-hand model. The car loan eligibility must be fulfilled by the car owner. Besides that, you need to be prepared with all the necessary documents needed for a car loan. Make sure that you do proper research and don’t compromise on any part when opting for a second-hand car loan.
8. Transferring Ownership: With the purchase of a used car, the ownership also gets changed. The original owner (who is selling their car) should inform the RTO that they are selling their registered car to the new owner. All the formalities must be done within 14 days.