Purchasing a used car is more complicated than simply stepping into a second-hand car dealership, giving over some cash, and driving away with an ideal second-hand car. It also necessitates investigation and inquiry. Though the research and inquiry begin once you start communicating with the dealer or private seller, you need to first prepare a questionnaire for yourself before purchasing a car on used car loan financing,
Q.1. Why are you looking to purchase a car?
Identifying your need should be the first thing that you should consider before deciding on which car to purchase. Some people desire a car for everyday commuting, while others want to buy one for business purposes, such as running a car in a travel agency. Once you have figured out the objective, it will be easier for you to narrow down the list.
Q.2. What is your budget?
The used car market offers a wide range of options to choose from. You will easily find the car that was once dubbed the most cost-effective car of the year, as well as the one that is famed for its luxury. As such, you need to first figure out how much you can afford to spend. Explore the market to get a rough estimate of the price of your shortlisted car model. Once you are aware of the cost, plan your budget accordingly. Always remember, the car that you choose will have a direct impact on your used car loan financing EMI.
Q.3. What features are you looking for in your ideal car?
Every single model and variant that is running on the road has a trait that sets it apart from the other cars. However, bear in mind that the more features you want, the more money you will have to pay out of pocket, and the more money you will need to borrow through a used car loan. You must also not overlook the fact that the cost of high-end vehicle insurance is quite expensive when compared to that of budgeted cars.
Q.4. Why is the seller selling the car?
A car purchase is a massive financial commitment. You can’t just pick a car at random because it is painted in your favourite colour. Once you have settled on your objective and narrowed down your list of potential vehicles, it’s time to find the perfect vehicle and figure out why it’s for sale. This inquiry will address a number of issues at once. Asking the seller your inquiry and allowing them to speak for themselves is perhaps the right approach. You will also learn about the vehicle’s performance, fuel efficiency, and other features.
Q.5. What is the age of the car?
When purchasing a car on a used car loan, don’t overlook the age of the car. Used cars lose their price due to depreciation. However, the majority of the value of a new car depreciates over the first year of ownership. Read the odometer to determine how old of a car you should buy. You should also check to see if the model you want to buy has been discontinued by the manufacturer. These minor details can aid you in negotiating with the lender while also reducing the amount of money you will need to borrow through used car loan financing.
Q.6. What is the history of the car?
The history of the car you want to buy can assist you to figure out what condition it is in. Check the service book; it will help you figure out why the car was serviced. A car that has been sold several times is likely to be in worse shape. As a result, pay attention to the number of previous owners. If possible, avoid purchasing a car that has been sold multiple times.
Q.7. Will you need an inspection from a professional mechanic?
When you purchase the car from the certified dealer or from the manufacturer itself, you might not require the help of an outside mechanic. However, if you are buying from a local dealer or a friend or relative, don’t be afraid to seek the advice of a certified mechanic. Having a thorough inspection before buying a car on a used car loan, helps you get a better bargain.
Q.8. Do you need to test drive a vehicle?
Whether new or old, taking a test drive is always recommended. The easiest approach to figure out if a car is ideal for you is to take it for a test drive. If the seller refuses to let you take a test drive, be cautious because there could be a red flag. If you don’t know how to drive, have someone you trust take you for a test drive to see if the car functions smoothly and without glitches.
Top Features of Second Hand Car Loans
Lenders extend various attractive features and benefits on used car finance to make loan management hassle-free and convenient for borrowers. Here are some of the most popular ones.
- Despite a high financing availability, the total loan remains under the financing value for new cars. It allows you to keep the EMIs in check, thus easing loan repayment.
- With some of the best lenders, you can easily avail a used car loan of up to Rs.50 lakh to purchase your desired used car model.
- The repayment tenures for these loans are usually available over an extended period of 5 to 7 years, which means you get a long term to service these loans as per your affordability.
- With the right lending institution and on meeting required eligibility, you can avail as much as 100% of the car’s resale value as financing for vehicle purchase.
- You can apply for a used car loan online in a few simple steps from the comfort of your home. It doesn’t even require you to step out for document submission as the lender representative would visit you for it.
- Only a few documents need to be submitted as proof of your eligibility for availing the loan.
To Conclude:
Always bring these 8 queries with yourself to the dealership when purchasing a car on used car loan financing.
