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Guide To Follow Before Applying For A Loan On Used Car

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Abdul Kadir
Guide To Follow Before Applying For A Loan On Used Car

Are you planning to purchase a pre-owned car?

Are you doubtful whether you should get it or not?

Well, we would recommend you go for it! Rather than a brand new model, a used car is much economical, lacks lowers insurance, have flatter depreciation, plus comes with a warranty that makes the used cars an excellent alternate to new vehicles. Yet, everything depends on your determination process.

The demand for pre-owned vehicles is experiencing extensive and swift growth. Therefore, the industry for used cars has become a semi-organised industry in India, making it complicated to reckon on roadside car dealers. Hence, you have to consider a thousand things like insurance, loan on used car, documents, application process and what's not! So, if you do not aspire to get driven by a car owner or dealer, we always advise you to consult an expert who can assist you ride through the process.

Here we have listed few easy guides to follow before you apply for any finance while buying a used car:

Step1: Settle on your dealer carefully

Before you apply for a loan on used car, the first and foremost step for you to follow is to settle on the dealer from whom you want to purchase the wheel. You can buy directly from any individual, a franchised pre-owned dealer or a broker. However, the first option is always advisable if you know the seller personally! Despite this, do not rush while deciding the car seller; consider your priorities and determine accordingly.

Also Read: How Long Can You Finance a Used Car?

Step2: Execute your study diligently

  1. Choose the model - This round comprises far-reaching research. If you desire any particular model, inquire from different dealers about the pros & cons of owning it, maintenance charge, affordability in the long run and other associates.
  2. Negotiate the value- You can research online and offline both regarding the car's rate you aspire to buy so that you can negotiate. However, the price may differ, drawing upon the car's colour, condition and manufacturing year.
  3. Acquire the features- Money is not the chief key; you must be amicable with the car's features so that you can detect any missing accessories or components while inspecting the vehicle.

Must Read: Have The Documents Required For Bike Loan

Step3: Complete the paperwork all-inclusively

Another significant step while buying a second-hand car is shifting the ownership in your name from the seller. So, as a next step, transfer the RC (Registration Certificate) in your name and verify other papers as well. Along with RC, transfer the insurance name as well; otherwise, it will get nullified.

Furthermore, verify if the vehicle has ever met any accidents as well as check whether it has No Claim Bonus (NCB) because the higher NCB, the better it will succeed. Also, make sure that there is no imminent debt entitled to the car you are purchasing.

Bonus Tip:

Do not forget to verify the interest rates of the loan on used car. It will help you calculate your monthly EMI as your added convenience. Also, to flaunt your purchase, get your car well-washed and do quick fixes done before driving.

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Abdul Kadir
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