Benefits Of Availing Second Hand Car Finance
If you plan to buy a car, a used vehicle can be worth considering, especially if you have a shortage of funds. The first benefit of buying second-hand cars is that you can be the owner of your preferred vehicle model without spending a hefty amount.
Secondly, cars have a depreciating value. Hence, if you judge it from the point of investment, there is no need to invest in a first-hand car as it does not have much resale value.
In case you have not still decided whether you will buy a second-hand vehicle because of your budget, avail of a resold second-hand car finance now and fulfil your dream of being a car owner.
Here are more pointers that will tell you why it is always better to buy a vehicle on a used car or scooter loan.
Lower interest rates
When you take a loan, you will always remain concerned about the interest rate. When you take a dedicated second-hand car finance, you can stay away from this worry.
The used car’s selling price is low. So, the principal amount of the loan calculated for a used car loan is also low. Since the financing institutions calculate the interest payable on this comparatively lower principal amount, the interest rate will always be much lower.
Highly competitive loan amount
The tendency to buy used cars has increased overwhelmingly in the past few years. Hence, the financing institutions offer loans for second-hand car to encourage these customers even more.
As different financing institutions have introduced second-hand car finance, so they offer various schemes with an array of loan amounts to target specific niches of used car buyers. Some institutions even offer a loan amount of up to Rs. 50 lakhs too for used cars.
Therefore, the customers are always in a helpful position to decide which financing institution is offering a better loan amount for a used car and then make a final decision.
Flexible repayment schemes
When you take a loan, repay it within the specified time to avoid unnecessary hassles. The same rule applies to used cars also.
However, the best thing about a resold car loan is that the financing companies offer flexibility in loan repayment schemes. As a customer, you can always talk to the concerned executives and select the tenure when you repay the full loan amount.
Some of these agencies even offer partial and full foreclosure options so that customers can avail themselves the opportunity of repaying their loans before the specified time if they can manage to accumulate and deposit adequate funds.
Flexible loan repayment gateways
Another flexible feature of a second-hand car loan is that customers can decide the specific manner in which they will repay their loans as EMIs.
For instance, if a customer prefers to pay the EMI through the digital format, he can choose NEFT transfer, digital wallet-based payment, and similar other alternatives.
Again, some customers are comfortable with the traditional EMI payment system where they issue the cheque in the financing institution’s name. The financing institutions have that option for their customers too.
Similarly, the option of depositing cash in favour of the financing institution is also there for customers who prefer this mode of EMI payment.
In a nutshell, you can design the EMI repayment method for the second-hand car loan precisely as per your convenience.
Customised EMI amount
Another feature of the used car finance is that you can customise the EMI amount you will pay according to your affordability and convenience.
Let us be more specific. If you think you cannot pay a hefty sum regularly as EMI, you can choose the lowest EMI scheme. In this, pay the minimum amount that your financing institution has specified. In that case, the tenure of loan repayment will get prolonged.
However, if you can afford the loan within the shortest tenure, you can opt for a maximum EMI scheme. You have to talk to your financing firm accordingly.
In sum, when you take a second-hand loan that is dedicatedly designed to help you buy a used car, you will have complete control over your finances without the fear of making any defaults.