In today’s fast-paced environment, having driving skills is essential. But many people are reluctant to begin driving. This is mostly caused by fear for one’s personal safety, the safety of other road users, and the fear of doing damage to one’s vehicle. Hence, it is preferable to buy a second-hand car for beginners to learn to drive. You can check many second-hand car websites to select a used car from the list of the best car for beginners India.
In India, the market for used cars is substantially larger than the market for new cars. According to reports, after the pandemic’s end, there has been an uptick in demand for used car loans. This is mostly because these cars are less expensive. It is not thought to be a good idea to pay cash for them. Instead, getting a loan for a used car is the best option.
The majority of financial institutions in our nation offer loans to buy second-hand cars on EMI The loan amount generally starts at INR 1 lakh and extends up to 85% of the car’s value. In most financial institutions it is very simple to apply for a loan.
A detailed article for you on car nicknames, you may find it interesting.
What is a Used Car Loan?
As already stated previously, the majority of financial institutions today provide second-hand car loans, enabling a person to finance the purchase of a used car. But it’s important to realize that financing a used car purchase is very different from financing a new one.
Having said that, financing choices for used cars are very different from those for new cars. Even the characteristics and perks of these loans varied greatly.
How Much Loan Can I Get on a Used Car?
Most banks give second-hand car loans with a minimum of INR 1 lakh, but only a few go as high as INR 2.5 crore. The average vehicle loan for a used car is up to six times the borrower’s annual income.
The purchaser may additionally receive up to 100% of the car’s value. There is one caveat, though: the age of the car at the time the loan matures cannot be more than ten years. A used car loan can only be taken out for a maximum of five years.
Can You Finance a Used Car?
Yes, it is possible to get second-hand cars on EMI, rather easily. Even a personal loan for the purchase of a used car is an option for the borrower. These loans are commonly given at reasonable rates and don’t need a lot of paperwork. The borrower also gains from features like flexible repayment schedules, easy eligibility criteria, and more.
The market for used vehicles, second-hand cars, and pre-owned cars is growing in popularity as reputable car resale businesses have emerged. Customers are becoming more confident in purchasing such cars as a result of well-known brands entering this industry. People used to be wary of purchasing previously owned cars in the past because of questions about the car’s genuine ownership. However, government services like VAAHAN can assist prospective buyers in learning the registered owners of automobiles, reducing the danger to some extent.
Benefits of a Used Car Loan
Lower interest rate than personal loans: Because the vehicle is hypothecated to the lender, used-car loans are secured loans by nature. The interest rate will therefore likely be lower than it would be for a typical personal loan.
Reliable Security Check performed by the Financier: – You can be sure that the transaction will actually result in a transfer of ownership of the vehicle into your name since the bank or finance business does an extensive background check on the registration documents of the vehicle. Given that you could lose all of the money you spent in the event of a fraudulent transaction, the risk of forgery in registration documents is unquestionably high.
Flexible Repayment Tenure: The majority of lenders provide flexible repayment options with monthly payments for terms ranging from 11 months to 7 years. As a result, you can arrange your EMIs in any way you like.
Conclusion
Rarely do people enjoy taking driving lessons in their brand-new car. The same is true of inexperienced drivers. Buying a used car is unquestionably the greatest choice for learning and practicing driving. Reputable dealerships offer pre-owned vehicles at reasonable prices. There is a large selection of used automobiles from various brands available from used car dealers and a learner can choose the best car for beginners India, amongst them
The availability of used car loans has made it easier for individuals to realize their aspirations of owning a car. The used automobile finance business has expanded quickly in the post-pandemic period, just like the used car market has. With so many financial institutions in India offering used loans to buy second-hand cars on EMI, anyone may now easily finance the purchase of a “new” pre-owned vehicle.