Steps to apply for finance for used cars
Owning a car is no longer a luxury, it has become a necessity and with the favorable terms of a loan, it is easier to get funding for the purchase. You cannot use public transportation for commute anymore due to the pandemic and this is why a lot of people are opting to purchase used cars. Whether this is your first car or a spare car, buying a used car is a smart decision but one you should take care of. There are hundreds of options in the pre owned car market but you must take a test drive to ensure that you are making the right decision. There are several lenders who offer finance for used cars at friendly terms of repayment. If you want to buy a used car, follow the steps below.
- Head to the dealership
The first place to scout for used cars is to head to the dealership. You will find many options here and can have all your questions answered. Take a look at the cars keeping your budget in mind and shortlist them.
2. Head to the pre-owned car market
Even if you have liked a few cars at the dealership, it is important to check out the pre-owned car market. There will be several brands and car models to choose from. You can also shortlist the cars from here.
Must Read: 5 Frequently Asked Questions (FAQs) About Pre-owned Car Loan
3. Take a test drive
Now that you have a few cars in mind, take a test drive in them and see how it works. You must pay special attention to the engine, brakes, lights, and overall condition of the car. If you do not enjoy the ride, it is not for you. You can also take an auto enthusiast friend with you to make the right decision.
4. Approach a lender
Once you have a car in mind, you must ensure it is less than eight years in age. Lenders only offer finance for used cars that are not older than eight years. You can approach the lender and understand their eligibility criteria and terms of the loan. All lenders require you to make a minimum amount of downpayment and you will have to adhere to the same.
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5. Make a loan application
Proceed with the loan application by filling the application form online. You will also have to submit the identity proof, address proof, income proof, proof of downpayment, and the invoice of the car. The lender will process the loan without any delay.
6. Prepare a repayment schedule
Once the loan is processed and approved, you need to ensure that you make the EMI payments on time. To stick to the schedule, prepare a repayment schedule so you do not miss out on any EMI. You can repay the loan while you use the car. It is possible to get finance for used cars with these simple steps. The loan application procedure is simple and hassle-free, making it the first choice of car buyers.