Used Car Loan

If you are buying a car for the first time, a golden piece of advice would be to opt for a used car. With your current budget, you can buy your dream car and yet be able to make two international trips. On the other hand, if you are short of money, you can apply for a used car loan to manage your finances without putting any burden on your pocket. 

The benefit of applying for a second-hand car loan is that you can secure your required loan amount at an affordable used car loan interest rate and flexible loan tenure, allowing you to repay the loan without any delays or defaults. 

Here Are The Top Five Things To Keep In Mind While Opting For A Used Car Loan:

1- Interest Rates

The most important factor to consider before taking a second-hand car loan is the used car loan interest rate. It has a direct impact on your EMIs. It is worth noting that the second-hand car loan interest rate depends on factors like your income, credit score, current financial obligations, etc. You can visit the nearest Muthoot FinCorp branch or call on 1800 102 1616 to understand in detail. 

2- Choosing The Loan Amount

We, through our group company Muthoot Capital Services Limited, offer up to 90% of the vehicle’s value as a loan. However, before applying for a used car loan, you will need to assess your needs and preferences and then choose a loan amount that you need. Choose only the amount which you are comfortable to re-pay in EMIs alongside the loan interest.

3- Thoughtful Down Payment

As you get up to 90% of the vehicle’s value as a loan from us, you will have to make the remaining amount as a down payment. When you make a bigger down payment, your liability to repay reduces to a smaller loan amount. So, while buying your dream car, make sure you are thoughtful enough to decide between the loan you need and the down payment you can make. Down payments sometimes affect the loan interest rate too. 

4- Choosing The Tenure

Your used car loan tenure has a significant impact on your EMI. If you choose a longer loan tenure, you may end up paying higher overall interest, and choosing a shorter loan tenure reduces the total cost of borrowing. Before applying for a loan, you can use a used car loan EMI calculator to determine if you can repay the loan amount within a specific tenure.

Muthoot used car loan tenure ranges between 12 to 60 months, giving you the flexibility to repay your loan amount based on your needs and preferences. Make sure to keep your used car loan tenure within three years to avoid paying more interest in the long run. 

5- Use A Used Car Loan EMI calculator 

Before submitting your used car loan application, you must assess your needs and plan your budget in a way to repay your loan amount within the stipulated EMIs. You can use a used car EMI calculator to determine how much you can afford to pay as EMIs. There are two main components of an online EMI calculator – principal loan amount, used car loan interest rate, and repayment.

Enter the loan amount, interest rate, and loan tenure on your lender’s used car loan EMI calculator, and the calculator will instantly produce an accurate result. The best part is that you can alter changes in their values as many times as you want until you figure a suitable EMI for yourself.

Conclusion

Taking a used car loan is the best way to own your dream car and yet be able to manage your finances without touching your savings or investments. However, as mentioned earlier, it is crucial to assess your budget and then make a decision. 

To get the best-used car loan, you can opt for Muthoot used car loan. It enables you to get up to 90% of the vehicle’s value as a loan at the most affordable used car loan interest rates. The loan tenure starts from 12 months and can go up to 60 months.