Used cars enjoy tremendous popularity in India. In FY 18-19, the used car market in India was worth $ 90 billion and clocked an astounding 4.8 million units. It is predicted that in 2021, 6 million units would be sold. Over the previous five years, the used car market has been growing at an impressive rate of 12%.
One of the reasons behind the rise of the second-hand car market is the lower cost as compared to new cars and easy availability of finance to buy a second-hand or pre-owned car. Used US Bank Car Loan interest rates offered are quite competitive and customers are willing to take loans to purchase second-hand cars.
Here is a beginner’s guide to choosing the perfect used car loan
Figure out your needs
Before choosing the perfect used US Bank Car Loan, you must choose your perfect used car. There are used car models across categories such as hatchbacks, sedans, SUVs and even premium automobiles. Depending on the number of family members and usage pattern, you would have to narrow down your choice. You could even consult your family members and find out their preference.
Identify your budget
While selecting the used car which you wish to buy, you would also have to determine the budget or at least the range of your budget. This would depend on your savings as well as how much you wish to borrow. Finalising your budget would also make it easier to narrow down on the choice of the used car which you wish to buy.
Research various quotes
You could either search for quotes online or interact with various lenders over phone calls or by approaching their branches. You would want to gather as much information as possible about different lenders such as:
- The highest possible loan amount that would be offered
- Second-hand car Interest rates
- Documents required
Evaluate used car loan interest rates
The interest rates charged by different lenders will play a critical role in determining your EMI. If your credit history is healthy, it is possible to get favourable second hand car interest rates.
Estimate the EMI
Several lenders offer used car EMI calculators on their website. Therefore it becomes convenient to calculate the estimated EMI that one has to pay. An EMI calculator would enable you to identify the monthly outgoing you would incur on servicing the loan. Thus you can plan your lifestyle accordingly.
Keep documents ready
Create a checklist of all the documents necessary to avail of a used car loan. Take multiple copies and keep them ready. Generally, documents required would include:
- ID Proof
- Address Proof
- Income Proof
- Copies of Passport sized Photographs
Thus you can go ahead and avail of a loan for purchasing a used car thanks to customer-friendly used car loan rates charged by lenders. Do due diligence of the lender and their terms and conditions, before applying for the loan. Make sure you talk to the customer care representatives to understand every aspect before submitting your application.