Steps to Apply for Used Car Finance

Finance

The current situation of Covid 19 has changed the normal for all of us. While life is slowly returning to the prior routine, there are a lot of things that remain different. Even if we resume work or business operations, we cannot let our guard down. Pre-pandemic, public transport was popular and high in demand. However, due to security concerns, a lot of us do not feel happy about using public transport now.

All of us are not in a financial position to purchase a new car at this time and this is why a used car is an ideal decision. Public transport will not be safe for the foreseeable future and it is best to invest in a used car to commute or travel. Used cars are available in every brand and type of car and you can easily find one that fits within your budget. Once you zero in on a car, you can simply apply for used car finance. Follow the below-mentioned steps to enjoy a hassle-free loan approval.

1. Do your Homework

Buying a used car is not as simple as buying a new car. There are various aspects you need to consider and choose carefully. You can either head to the dealership for a used car or hit the pre-owned car market to take a look at the available options. There will be many cars at the used car market and you can shortlist the ones that you are keen on buying. Whichever car you choose should be less than eight years of age and in a good condition. You do not want a car that will require constant maintenance.

2. Look for Reliable Lenders

After you have chosen the car you want to own, you need to scout the market for reliable lenders in the industry. Several lenders offer used car finance and can help with the purchase. You need to compare the eligibility criteria and interest rate offered by each lender. A low-interest rate means the EMI amount will be manageable. You can get the details online and can easily make a comparison.

3. Make a Downpayment

Lenders do not offer a loan for the complete value of the car. You can get a loan for about 70% of the cost of the car. Hence, you will have to make a downpayment for the purchase. You have to make the minimum downpayment required by the lender and the balance will be your loan. If you have excess funds on hand and can make a higher downpayment, you should do so.

4. Make the Application

You can now file an online loan application by filling up the form and submitting the documents. You need to provide the identity proof, address proof, income proof, proof of downpayment, ITR, and invoice of the car you want to own. The loan application process is simple and hassle free. The customer executives will connect with you if they need any additional information, otherwise, the loan application will be processed and approved in no time.

Bring home your stylish new car with used car finance. Put an end to the worries of financing the purchase and apply for a loan with a reliable lender in the industry. Timely repayment of dues will help build a strong credit score.