The market for second hand Mercedes Car has grown in recent years. It received a significant boost all across India since the pandemic began in 2020 as more and more travellers now prefer a four-wheeler. Moreover, leading banks and financing companies are providing pre-owned car loans which enable buyers to purchase used-luxury car models at pocket-friendly prices. However, if you are looking for a pre-owned car loan, there are several things that you must know.
How to get a pre-owned car loan?
Research - Do your research about various banks and financing companies to apply for a pre-owned car loan. Find out rate of interest, offers, tenure, eligibility criteria, terms and conditions, EMI options, prepayment charges etc. Once you understand the benefits and drawbacks, make your decision.
Eligibility Requirements - Lenders generally have their own set of eligibility requirements based on which they approve or reject pre-owned car loan applications. However, some of the common eligibility criteria demands that an applicant should have monthly income, the age bracket should be between 21 to 65, and a good credit score is a necessity.
Documents Required - Similar to eligibility requirements, lenders have different document requirements. Generally, you will be asked to submit the following documents for the lender to start processing your application:
● Identity Proof with photo and age - It can be Aadhar Card, PAN Card, Passport, Driving License.
● Application form signed by you plus passport size photos
● Proof of Address
Once the lender completes the verification process and is satisfied, pre-owned car loans are approved, and you can use the fund to make the purchase.
Miscellaneous things to know - As a buyer, you must know about the original documents of the pre-owned car which is in the custody of the seller. Additionally, know if any loan amount or e-challan is pending at the seller’s end. If you are buying a used car from another state, ask the seller for NOC from the state of registration.
Benefits of Pre-owned Car Loans
Pre-owned car loans offered by banks and financing companies often come with a lot of advantages for the buyer.
Interest Rates - Most of the time, it is expected that the interest rate on a pre-owned car loan is lower than a general personal loan, which also means lower EMIs. It is mainly because pre-owned cars are hypothecated to financiers.
Flexible repayment option - Many lenders provide flexible repayment options for a pre-owned car loan which will vary from months to years, depending on the lender.
Offers - Also, many times, you get attractive and beneficial offers such as zero loan processing and rebates with the pre-owned car loan.
Reliable - The financier or bank often checks and verifies all the information related to the pre-owned car before approving your loan application. This examination makes your choice of a used car reliable as any fraudulent documentation or registration is detected.
The best-case scenario for buyers is to get financing options from the used car dealers themselves. Auto Hangar Advantage is one of the leading and trusted pre-owned car dealers in India, offering attractive in-house financing options. You can buy your dream luxury car with hassle-free pre-owned car loans. For information regarding loan options, features and benefits, contact us at any time.
5 important factors that will help to choose between personal and used car loans while buying your pre-owned luxury car
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