Cars are significant in our daily life. Though public transport is convenient, sometimes it is hard to get a vehicle when you are in a hurry or going to the office. If you want to get a car for traveling purposes but do not want to buy a new car model, the best thing to do will be to apply to get used car loans. Through used car finance, anyone can get a good second-hand vehicle.
Used car finances offer loans with very reasonable interest rates and can extend the repayment period up to 7 years. Few lending companies offer finances up to 100% value of the vehicle. You can obtain car finance to get a second-hand car from banks and finance companies. Salaried employees, self-employed persons, or anyone can apply for used car finance.
New Vehicles Are Not Affordable for Everyone
A new car worth more than $30k can be out of reach for some people. Even to afford the cheapest model of a new car, a person needs to save their salary almost for one year without even spending a single penny, and that is not possible at all. So you might wonder how so many individuals are affording their vehicles? Either they are getting financial support or purchasing a used vehicle.
Price of Second-Hand Cars
If you research websites for used cars, you will notice most used cars are between $4000 to $5000. You can get your desired vehicle within your budget with ease. These cars are not in pristine condition like brand new cars as they were on-road for a long time, but the maximum number of these cars are worth driving and have a lot of life in them.
Acquiring a Loan for a Used Vehicle
The primary issue people face while applying for a used vehicle loan is some car lenders do not allow it. For instance, few lending companies offer loans only for brand new cars or 5-year-old vehicles, not more than that.
The other difficulty people struggle with is the acquired amount from the loan. Lenders provide finances up to a certain amount which is not suitable all the time. Most lending organizations have a minimum loan amount of $5000 to purchase a used car, and it is not enough every time since the funds do not cover the 100% value of the vehicles.
Another choice of loan is dealer finance or asset finance loan. However, there are barriers too. This finance is available for new cars and a few specific models. Dealer finances are present with balloon payments. In simple words, you have to pay a massive amount at the end of the contract.
Though all finance options are not similar, used car finances offer loans from $2000 to $7000 with an attractive interest rate. These companies do not bother much about the car model, whether 2 or 7 years old.
Why Get Car Finance?
The main reason to get car finance is the sooner you can arrange the money, the sooner the car will be yours. Either you use it for office purposes, drive it daily or use it for a family vacation. Owning your vehicle is very convenient and helpful.
If you have the money in your hand before approaching a dealer, it allows you to negotiate with the dealer and it will put you to a better position. If you pay for the car then and there, you might be able to obtain the best deals that you have never imagined.
Benefits of Used Car Finances
Used car finances give you several advantages. Among those, the mentionable benefits are as follows.
- As it is not new car finance, the loan amount will be lesser. So the monthly repayment amount will be low as well.
- The repayment option will be for a longer time.
- Some specific banks and NBFCs provide 100% of the car’s value.
- The procedure of applying for a loan is easy and quick. You can even complete it online.
- The depreciation rate and insurance amount are lower than the number of new vehicles.
- Only a few pieces of paperwork is required. No need for additional documents.
- The repayment options are adjustable. They give you complete flexibility to choose the payment option you like.
Process of Applying for a Used Vehicle Finance
- Research thoroughly about used vehicle loans.
- Choose the one which offers the best facilities.
- Visit the company or bank you have chosen to obtain the loan.
- Fill in the mandatory forms.
- Confirm if you fulfill all the criteria to acquire the loan.
- Then submit the essential documents.
- Discuss with the lender about the interest rate, processing charge, etc.
Bottom Line
Everyone desires a vehicle, no matter if it is brand new or second-hand. Through personal loans like used car finances, anyone can fulfill the dream of owning a car. All you have to do is let us research the lenders for you and you could be driving away sooner than you think.