Things that you need to know about pre owned car finance

You may plan to buy a used car due to various reasons, the most important being the price of the car. Pre-owned cars come at a much lower price than a brand-new one. The other reasons may be the associated costs that also go down for a used car. Usually, you can get pre owned car finance from banks if the car is less than 10 years old. For older cars you may have to get the dealer’s help regarding in-house financing. Read on to know about certain important things about used car loans.

The reasons why you may choose a pre-owned car are affordability and avoiding other charges like the government taxes and registration fees. The previous owner may have already paid them during registration. Apart from these, other advantages are:

  • Low EMI

You have the advantage of low EMI if you apply for pre owned car finance. This is because you get the car at a lower price and thereby, apply for a smaller loan amount. It is always beneficial to consider a pre-owned car over a ne one.

  • Loan amount

The loan amount and eligibility would depend on the value of the car that you are purchasing. You can get a loan up to 90% of the car price that the seller is charging. Some lenders may provide up to 100% funding depending on your application. There are several factors that they consider like your age, income, etc.

The process of getting used car loan is easy and consist of the following steps:

  • Choose your car

You can select a car from the numerous used car models available online at specific sites. Ask for help if you would like to get a suitable car according to your needs and budget. There are executives who would help you choose the best car.

  • Check your eligibility for getting pre owned car finance

You can visit the online car buying sites and fill up certain details to apply for a loan. These include information about your income, name, address, car model and age, etc in a secured format. If you are eligible, you will get an instant approval. Choose from various offers by lenders that you would find on the site.

  • Get your car

You can plan a delivery date as per your convenience. There are provisions for same day delivery after you complete your loan formalities. Once the loan is approved and payment done to the seller, you can drive away with the car.

Process of ownership transfer after loan approval

If you are buying from an online car dealer site, you may get help regarding ownership transfer to your name. The dealer would get original documents of the car that you have purchased and submit it to the RTO (regional transport office) on your behalf. They will send the transferred Registration Certificate to your current address after transfer of ownership and validation.

Documents that you require for used car loan

The documents that you have to submit would vary between different lenders but there are some standard requirements. If you are a salaried individual, submit the following:

  • KYC documents
  • PAN card
  • Salary slips of last three months
  • Salary statement for last six months
  • Proof of verified signature
  • Car registration certificate

If you are self-employed, submit the following:

  • KYC documents
  • PAN card
  • Last two year’s income tax return as income proof
  • Income statement for last six months
  • Proof of verified signature
  • Car registration certificate

Getting adequate information on pre owned car finance, would help you in faster closure of the payment process and car delivery. Whether you apply for loan from a bank or other sources, there are certain documents that you have to submit online or offline. Complete the documentation at the earliest to take the car out on the road

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