Used Car Loan
The automobile market has expanded at a brisk pace in the last decade. The Indian automobile industry, in particular, has witnessed a massive surge in the domestic market for passenger vehicles (cars, vans, and other utility vehicles) and two-wheelers. Nearly three million passenger vehicles are consumed locally in India every year.
The impact of Covid-19 has adversely affected the purchasing power of consumers worldwide. However, amid growing concerns over social distancing and contactless commutation, cars, and other personal vehicles’ demand is rising. Therefore, opting for a second-hand car becomes a viable option in the current scenario for three reasons:
- Many consumers are not willing to exhaust their savings for buying a brand new car amid financial uncertainties.
- The pandemic wave and subsequent lockdowns have disrupted the automobile industry’s supply chain and logistics, increasing the waiting period for new cars.
- The ready availability of Muthoot Capital used car finance has provided an additional cushion for consumers to buy a second-hand vehicle without paying the entire amount upfront.
Let’s dive further to understand why buying a used car over a brand new one is a better choice, especially using a second hand car loan.
4 Reasons Why You Should Be Buying A Used Car
Buying a used car offers two-fold advantages in terms of savings:
- A car’s value starts decreasing as soon as it hits the road because cars fall under the category of depreciating assets. Therefore, buying a less aged car over a new one can help you save significantly.
- You can buy bigger and higher-end models at the cost of base models. They offer greater luxury, comfort, security, and social value.
Certified pre-owned vehicles
Most second-hand cars from reliable automobile deals are thoroughly reconditioned before being handed over to customers. They also come with a warranty from the dealer that gives you complete peace of mind.
Besides, most new car owners buy extended warranties out of apprehension. Hence, you can enjoy the leftover part of this warranty in most cases if you buy a used car less than three years old.
Detailed vehicle history
With rapid digitization, taking out a car’s detailed history and service records is no longer a pain point for consumers planning to buy a second hand car. Companies like Droom provide detailed information about any registered vehicle in India, including registration details, insurance history, service logs, etc. It allows consumers to make an informed decision and negotiate better with sellers.
Attractive financing options
One reason for the growing popularity of used cars in India is the attractive financing options available in the market. Muthoot FinCorp offers used car loans, through its sister concern Muthoot Capital Services Limited, at competitive interest rates with flexible repayment tenures, ranging from 12 to 60 months.
Also Read: Tips To Get Used Car Loan At A Reduced Interests Rate
Used Car Loan is the Best Way to Finance Second-Hand Car
The ready availability of second-hand car loans from Muthoot Capital has immensely boosted the sale of used cars in India. Individuals with budget constraints can still attain car owners’ status without making a hole in their pockets.
Some of the benefits of availing of used car finance from Muthoot FinCorp branches are:
- Cost-effective Financing Options: You can obtain an amount ranging from Rs 50,000 to Rs 10 lakhs with Muthoot FinCorp’s used car loans for buying a second-hand car at attractive rates of interest and lenient eligibility criteria.
- Flexible Repayment Tenure: With Muthoot FinCorp, you can repay the used car loan in small installments over 12-60 months. The flexibility allows you to plan your finances well without draining your monthly budgets with hefty EMIs.
- Hassle-free Application and Minimum Paperwork: Applying for used car finance is very convenient and straightforward. Click on ‘Apply Now’ and fill a short form asking for personal and a few other details. A representative would contact you and walk you through the remaining process. To obtain a second-hand car loan from Muthoot FinCorp branches, you need:
- Address proof — Passport / Driving License / Landline telephone bill / Electricity Bill / Ration Card / Aadhaar Card/ Voters ID Card
- Proof of identity — Pan Card/ Aadhaar Card/ Voters ID Card/ Passport
- Proof of income — ITR / Bank Statement / Salary Slips / Form 16
- Asset proof
- Recent passport-sized photograph
How to Arrange a Used Car Loan for a Second-Hand Car In India?
To avail of a hassle-free used car loan for a second-hand car purchase, you can reach out to Muthoot FinCorp or our sister concern Muthoot Capital Services Limited at 1800 102 1616 or walk into your nearest Muthoot blue branch. The applicants must be aged 21 or above at the time of applying and not over 65 years at the time of loan tenure completion. Any salaried, self-employed, or agriculturist is eligible to apply for used car finance through NBFCs. Consumers can leverage the used car loan EMI calculator to determine the second-hand-car loan interest rate and monthly installments on the lender’s website before putting through their loan application.
Muthoot FinCorp’s used car loan is an excellent choice to bring home your favourite four-wheeler without fiddling with your budget. With the competitive used car loan interests and flexible repayment tenure, buying a second-hand car will no more be a complicated decision. You only need to identify a trustworthy car dealer to get the best deal on a second-hand car purchase.