Top 5 Things To Consider While Opting For Pre Owned Car Loan | AU Small Finance Bank
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Top 5 things to check before applying for a pre-owned Car Loan

    • Applying for loans for used cars is never easy. Apart from the higher interest rates, there is no generalisation in this case. Every pre-owned vehicle is unique with its own individual value system. That is why it becomes difficult to categorise the loans for the same yardstick either. That said, there are certain basic dos and don’ts that one must follow. Here’s knowing more.
    • 1. Check for the lowest interest rates:

    Companies dealing with pre-owned cars generally have tie-ups with financial organisations that provide loans. While it is convenient, in terms of the ease of getting loan and the related paperwork, make sure you compare the interest rates. The thumb rule is you must go for the one that offers you the loan at the lowest possible interest rate
     
    • 2. Look for other alternatives and check for offers:

    Once you finalise the car, also look for possible deals and discounts. Many finance companies offer interesting and attractive deals to woo customers. You have to choose wisely to maximise your gains and minimise the expenses. Often the charm of the pre-owned car is a relatively lower financial commitment. Proper deals and discounts can go a long way in sweetening the deal further for you.
     
    • 3. Compare multiple options before deciding for the best value proposition:

    Never settle for the first available loan offer that you get. It is always a good idea to explore the market and compare the various options on offer for you. Sometimes, in a rush you may end up paying higher interest or settle for rather difficult pre-condition. The idea is to get the best possible deal at the cheapest rate.
     
    • 4. Transparency in paperwork:

    That said, do not fall into a trap. Remember to make sure that your loan deal follows proper paperwork and there is absolute transparency. If anyone offers you the conditions verbally, do not approach. Whether it is a bank or an NBFC, the repayment terms and the loan period need to be clearly stated. Trust and transparency are the key factors to consider when you are dealing with pre-owned cars.
     
    • 5. Reliability of the loan provider:

    Credibility is a big factor in deciding on a loan factor. While the interest and terms and condition for loan payment are important, it is also crucial to ascertain that the loan provider is someone you can trust your money with. It is best to stick with reliable banks or NBFCs with a successful track record.
     
    Therefore, getting a loan may not be very difficult these days when you are financing your pre-owned car but ensure you only go with a trusted loan provider and don’t fall for cheap deals. Compare and contrast all parameters before deciding on any.