6 Steps to take when applying for a pre owned car loan

2020 has changed our lives drastically. It put a brake on our daily routine and made us realize the importance of having access to our own vehicles. Those who preferred to commute through public transport have understood that a private vehicle is a must. With a rise in income and increasing purchasing power, there is a surge in the demand for used cars across the country. The massive growth of pre-owned car markets across the country is proof that consumers are opting for used cars and are keen on bringing them home as compared to buying a brand new car. If you think about it, buying a premium used car will cost less than buying a new car. This makes a lot of sense if you already own a car or have just learned to drive. You can apply for a pre owned car loan in India and bring home the car without worrying about the funds.

The loan application procedure is simple and hassle-free, making it the first choice of car buyers. There are several lenders in the country who offer a loan at friendly terms and conditions. Here are the steps you need to take when applying for a pre-owned car loan.

1. Head to the pre-owned car market

If you have made up your mind about buying a used car, you must head to the pre-owned car market to take a look at all the available options. It may not be enough to visit only one market, hence, you need to take out time and head to multiple markets and look at the available options. Shortlist the cars you like and remember that the car should be less than eight years in age if you want to apply for a loan.

2. Take a test drive

Once you have shortlisted a few cars, you must take a test drive in them and see how it performs. Ask a certified mechanic to take a good look at the car and then check it for yourself. Do not make a decision simply based on the exterior of your car. It should work well and smoothly when you take it for a test drive.

3. Check the documentation

Before you finalise the car and negotiate the price, it is important to ensure that the documentation of the car is complete. You can check with the seller about the Registration Certificate, Pollution Under Control certificate, and insurance documents. Negotiate the price if everything is accurate and in place.

4. Choose a lender

Now scout the market for a lender and compare the terms on the loan offered by them. When you apply for a pre-owned car loan, you will have to make the downpayment on the loan and every lender will have a different requirement for the same. Hence, compare it online and check the interest rate offered by the lender before you proceed with the application.

5. Make a downpayment

Make the minimum downpayment required by the lender so the balance amount will be your loan. If you have additional funds on hand, you can choose to make a higher downpayment. You will have to attach proof of the downpayment at the time of the loan application.

6. Apply for the loan

You can now proceed with the loan application. Make an online loan application and submit the documents of identity proof, address proof, income proof, downpayment proof and invoice of the used car. When everything is in place, the lender will process and approve the loan in a few working days and you will be able to bring the used car home.

Follow these six simple steps to make a pre-owned car loan application. Keep the documents handy and ensure that everything is up to date. Do not apply for a loan with the first lender that you come across. Remember to scout the market and compare different lenders before making an application. Choose a lender that offers a low-interest loan as it will reduce the total cost of borrowing and make it easy and convenient for you to make the repayment within the given tenure. Give wheels to your dreams with a stylish used car.