Buying new cars was comparatively easier before the GST tax was revised. Well, the latest rate for new cars has increased to 28%, with an additional cess ranging from 1% to 22%. It is a major reason for prospective car buyers to opt for 2nd hand cars. Now, when buying them, you must plan your finances well because whether it’s a 2nd hand or first-hand car, they can be pricey.
So, let’s present you with a quick guide on using a 2nd hand car on EMI that will help you plan a seamless repayment structure.
Benefits of Buying a 2nd Hand Car on EMI
Among many ways to repay your loan used to buy a 2nd hand car, the EMI payment method has gained significant traction. Not just for cars, but paying for huge amounts in instalments has become a popular practice. Below are a few benefits you may get from buying a 2nd hand car via EMI:
- Save on Upfront Cost: Compared to a brand-new car that comes along with a hefty price tag, buying a 2nd hand car on EMI offers car ownership without breaking the bank. In fact, a lower upfront cost translates into better accessibility, especially if you’re buying a car for the first time.
- Wider Selection of Cars: The used car market offers a vast selection of models and brands across various price points. You’re not limited to the latest releases. You can find well-maintained cars from previous years, potentially even premium models that might be out of reach if purchased new.
- Reduced Depreciation Hit: New cars experience a significant depreciation hit the moment you drive them off the showroom floor. With a 2nd hand car on EMI, a large chunk of that depreciation has already occurred. This means you’ll lose less money when it’s time to sell the car in the future.
- Manage Your Finances with EMIs: Financing your purchase of 2nd hand car on EMIs allows you to spread the cost over a manageable timeframe. This way, you can own a car without having to drain your savings or put a significant strain on your monthly budget. The EMI structure lets you factor in the car cost alongside your other expenses, making car ownership a more realistic possibility.
What’s the New Way to Borrow for Car Loans?
Car loan apps are here to take the hassle of financing it out. Here’s how they make 2nd hand car borrowing process and structure its EMI payments easier and faster:
- Apply from Anywhere, Anytime: Long queues and branch visits will no longer exist when you opt for loan apps. They can help you submit your loan application entirely on your smartphone at your convenience. Whether you’re relaxing at home or on your lunch break, you can initiate the loan process in just a few clicks.
- Clear and Transparent Information: Car loan apps typically provide all the information you need upfront and in a user-friendly format. You can also get easy access to a variety of features, like an EMI calculator. Using loan interest rate, amount, and tenure, you can calculate your estimated EMI payments and understand all the terms and conditions within the app itself.
- Online Paperwork: You can upload necessary documents, such as your ID proof, income proof, and car registration documents, directly through the app. This not only saves time but also contributes to reduced environmental impact.
- Manage Your Loan On-the-Go: You can easily track your loan details, including the outstanding balance and upcoming EMI due dates. Most apps also allow you to make your monthly EMI payments conveniently through the app itself, ensuring you never miss a payment.
Tips for a Smooth 2nd Hand Car on EMI
While buying a car, especially when it’s 2nd hand on EMI and using a car loan app, considering a few essential factors is important. Some of them are:
- Research the Car’s History: Review the car’s service records and previous ownership to ensure it’s been well-maintained and has no hidden issues.
- Reliable Loan App: Choose a reputable car loan app with positive reviews. Also, check its features like a user-friendly interface to streamline the loan application process to ensure no information is difficult to access.
- Correct Paperwork: Verify that you have all necessary documents, such as the car’s registration, insurance, and service history, that are complete and authentic.
- Timely Payments: You can set automatic payment reminders to avoid missing EMI deadlines using the app.
- Know the Loan Details: Understand and ensure the terms of your loan, including the interest rate, tenure, and any hidden charges, fit within your budget.
Buying 2nd Hand Car on EMI Made Easier
A smooth car purchase requires research and careful planning, especially if you’re considering an EMI repayment structure. With loan apps on the rise, you can easily apply for a loan and leverage its calculator to your advantage. In addition to this, what you must consider to buy a 2nd hand car on EMI is a trustworthy loan app like that of Tata Capital.
Their app is user-friendly, and given the NBFC’s existing market reputation, you can borrow loans from their app stress-free.
Download Tata Capital’s official loan app and fulfil your car ownership dream today!
Source: https://www.paisabazaar.com/tax/gst-on-cars/
