There has been a considerable increase in the used car market over the past few years. This growth is mainly due to the availability of good quality and reliable cars. Moreover, people can easily afford to buy a used car than purchasing a brand-new vehicle.
Apart from this, many banks and other financial institutes offer various second-hand car finance services. Thus, getting a used car loan has become easier than ever. For availing the best deals on used car loans, you have to conduct market research on different dealers, best-used car loan rates, reliability of the vehicle and much more.
Here’s what you need to remember when looking for the best deals on your used car loan.
1: Try negotiating the price of the vehicle
While buying a used car, most people avoid negotiating the price of the vehicle. What people forget is that dealers usually have a huge profit margin when reselling a used car. Hence, you can always negotiate for a price more suitable to your budget. In addition, you can visit several used car dealers before finalizing your deal.
2: Look for different lenders
If you want to secure the best-used car loan interest rates, it is essential that you explore different lenders. You can connect with your local bank and see what rate of interest are they ready to offer.
Remember, the lower the interest rate, the lower is the loan amount you have to pay. Hence, browse through different lenders and their deals before choosing a lender for availing a used car loan.
3: Go through the terms and conditions
It is highly imperative to go through the terms and conditions of your loan tenure. Apart from this, look out for hidden charges such as prepayment fees, processing fees, and foreclosure fees. This will help you secure the best deals available in the market.
4: Keep a good credit score
A good credit score is essential when availing a used car loan. Your potential lender will consider your credit history before approving your loan application. Higher credit score determines your ability to repay the loan amount on time. Also, it helps you negotiate a deal that is best suitable for you. Hence, keep a habit of checking your credit score before applying for a used car loan.
5: Choose an affordable tenure
The loan tenure determines the time taken for you to repay the loan. You can choose between a short or long loan tenure depending on your financial conditions at the time of taking a loan.
A shorter loan tenure would simply mean that your EMIs will be high, but it allows you to repay the loan amount quickly. Moreover, the interest rates charged on short loan tenure are relatively low compared to that of an extended term.
It is noteworthy that extending your loan tenure will only increase the total cost of your used car loan.
The Bottom Line
Keeping these valuable tips in mind will help you secure the best deal on your used car loan. With Bajaj Finserv Used Car Loan from Finserv MARKETS, you can get an asset-based loan up to 90% of the car valuation. In addition, you can benefit from features like free car fitness report, end-to-end car care report, easy EMIs and so much more.
Also Read – Used Car Insurance
So, why look elsewhere? Apply for Bajaj Finserv Used Car Loan from Finserv MARKETS, today!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!