In India, a second-hand car is often called a pre-owned or used car. These are cars that have been previously owned. People buy these cars either as their first vehicle or to replace vehicles they already have. There are many advantages of purchasing a used car, including lower prices and better options for financing the purchase.
Buying a used car is one of the most common ways to get on the road. But, because so few people finance their used-car purchases compared to new cars (many of which come with a loan included in the price tag), it can be difficult to find affordable financing options. Muthoot Capital personal lines of credit can give you the flexibility and affordability you need to get your dream car.
If you’re planning to buy a pre-owned car on loan, keep these 5 factors in mind:
- Interest: Finding affordable financing for used car loans can be difficult. Because of their lower price, many financial institutions are hesitant to finance used cars at affordable rates. However, the personal loan from Muthoot Capital can serve as a second-hand car loan, and is cheaper than most bank offerings. If you have good credit, you may also consider a personal line of credit as an additional option for your next car purchase. Extra payments are usually allowed without prepayment penalties if you want to pay down your principal faster.
- Documentation: The documentation required for a used car loan can be very complicated. Most banks will only approve a loan after the seller or dealer has transferred the car title to the buyer’s name. They can refuse the loan if the RC or Registration Certificate is not in the seller’s name, or if the insurance has not been renewed. If you want an easy way out of this, Muthoot Capital offers second hand car loans with no paperwork hassle at all.
- Loan Amount: We offer the best used car loan interest rate and approved loan amount without any delay. Your eligibility is determined solely by your credit score and down payment you make. Don’t let your dream car be out of reach due to high IDV, Muthoot Capital makes sure that you get the maximum possible loan amount for which you are eligible for.
- Tenure: A used car loan allows you to buy a new or used car without having to pay the entire amount at once. Instead of splurging on your dream car, you can opt for small monthly instalments with a fixed tenure. Not only will this help you spread the costs and enjoy the benefits, but it’s also easier to repay without any tension.
- Approval Process: If you are looking for a hassle-free personal loan, Muthoot Capital can help. The application and approval process for a second-hand car loan or personal loan takes quite a while, usually requiring multiple visits to the bank or financial institution offering the loan. Even after approval, disbursal of funds will take a few days. With Muthoot Capital, the loan amount is available instantly after approval.
Have you been looking for a used car? Buying one on credit can be a great way to get your hands on it fast. With Muthoot Capital, you don’t have to wait until your next paycheck to get approved for financing. We can help you apply for a personal line of credit that you can use to buy your dream car today!