Step Guide to Securing a Used Car Loan | Fusion - WeRIndia

Step Guide to Securing a Used Car Loan

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Do you want to be the proud owner of a set of wheels, but your budget won’t allowing it? In this case, why not look for a used car? Several financial institutions now provide low-interest used car loans. You only need to follow the instructions below to obtain the one.

1. Explore the used car market

The used car market is massive and has been growing steadily in recent years. When exploring the used car market, you will come across various models. There are sedans, hatchbacks, MUVs, SUVs, and vintage cars.

Once you know your choices, the next step is listing specifications.

2. List required specifications

Every car is unique, as are the features that come standard. The more you increase your budget, the more chances you have of getting a car with high-end features. At this stage, compare the displacement size, maximum power and torque, mileage, battery capacity, and so on. In the context of the interior, consider the cabin size, boot space, infotainment system, and transmission. After preparing a list of these items, move on to the safety features.

The following are some of the most vital safety features that your vehicle must have.

  • Dual front airbags
  • ABS with EBD
  • Reverse parking sensors
  • Reverse parking cameras
  • Seat Belt pretensioner
  • Impact sensing door unlock
  • Isofix child seat anchors

Some of the features listed above may or may not be available in low-cost vehicles. In such a case, look for the NCAP crash rating. 

3. Choose your car

Now that you have the specifications list, it’s time to prepare a separate list for cars having the features you want in your dream car. Visit the used car dealership in person to inspect the vehicle. You must ask the salesperson questions about the car’s performance, functionality, additional high-end features, etc. Once you have all of your answers, you can finalise your vehicle.

4. Inspection

Never buy a car until you have inspected it thoroughly. Some crucial considerations while conducting an inspection are listed below.

  • Examine the exterior for any scratches or dents. Furthermore, if you notice paint coming out of your car, it is likely that the car owner has done polishing to cover flaws or that the vehicle has lost all of its shine due to rough usage or direct parking in the sun.
  • Inspect the condition of the infotainment system. Avoid purchasing the vehicle if it is broken or shows signs of malfunction. Otherwise, you will have to spend a significant sum on repairs or replacements.
  • Look for ripped seat covers, broken headlamps, or broken backlights. Also, check to see if there is a problem with the steering. In the event of a minor flaw, you can use them as a starting point for negotiations.

However, several issues are invisible with the naked eye. So, what should you do in such a situation? Simply follow the next pointer.

5. Test drive

A test drive provides a thorough understanding of the vehicle’s condition. It is preferable to drive for several miles rather than one or two kilometres to learn about the vehicle’s condition. A test drive will provide information on mileage, battery efficiency, engine power, air conditioner condition, and other crucial factors.

While driving, keep your ears open for any unusual noises or vibrations. If you notice any, it indicates a faulty engine.

6. Check documents

Never finalise a car without going through the documents. Check the registration certificate, pollution under control (PUC), servicing book, original sales invoice, and road tax receipt.

Key pointers to check

  • Always check that the registration and chassis numbers on the document match those on the car. Check to see if the seller of the car and the owner’s name printed on the RC are the same person. If not, be cautious.

  • Review the service record book carefully. Check to see why the car was brought to the service centre. If the cause is an accident, you may want to reconsider your decision.

7. Compare lenders

Once you are done with all the above steps, it’s time to compare the used car loan lenders. Evaluate interest rate, essential documents, and eligibility criteria. The common eligibility requirements with most lenders are as follows.

  • Citizenship: Indian
  • Age: Above 18 years
  • Experience: One year for both business owners and salaried.

8. Apply

If you meet the lender’s qualifying criteria, you can apply for a loan online or in person. If you want to make an offline application, you must go to the lender’s branch. There, fill out the application form as well as submit KYC documents. If you are applying online, go to the lender’s website and fill out your basic information. You will then receive a call from a lender’s executive to complete the rest of the process.

To conclude

Obtaining a second-hand car on EMI is not a daunting task. Begin by researching the used car market, making a list based on desired specifications, inspecting the vehicle, and reviewing the vehicle’s documentation. Once you have completed the preceding steps, contact the used car loan lender to submit a loan application.

Image Credit: Image by aleksandarlittlewolf on Freepik

Image Reference: Freepik

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