The financial market is afloat with multiple personal funding options that one can resort to when seeking financing for used car purchase. However, not all are financial beneficial and at the same time affordable. Most personal advances are unsecured loans and charge high rates, making them costly financing avenues. One should thus look out for customised financing options such as a pre owned car loan that are specially tailored for the purpose of second hand car purchase.

Features of these loans are provided keeping in mind the personalised funding needs of individuals purchasing used vehicles. So, below given are some of the top reasons why you should go for a used car loan when planning to purchase the vehicle second hand.

1. Suitable financing at reasonable rates

Reputed lenders offering used car loans provide financing of high value to suffice for any second hand car model purchase. Although used, high-end car models can still attract a hefty price, making it challenging to pay from your personal savings. Used car loans come to the rescue in such circumstances, with some of the best lenders providing as much as Rs.50 Lakh as second hand car loans for vehicle purchase.

To top it, being secured advances, these loans are provided at reasonable interest rates, making them affordable to repay as well.

Read Also: Benefits of Using Used-Car Finance Calculator

2. Sufficient tenure flexibility

With some of the best lenders, you can also opt for a suitable tenure as the repayment periods are reasonably flexible. Although tenure approval depends on the car’s remaining years of service, model selected and rate of depreciation, all the lender requirements in place can help you secure repayment tenure of up to 5 years for your pre owned car loan.

3. High loan to value

Loan to value is the maximum funds available as a percentage of the total resale value of your selected used car, which the lender agrees upon based on the risk involved. The remaining cost you need to incur as down payment for vehicle purchase.

When availing a used car loan from a reputed lender, you can expect to secure a high LTV of up to 75% of the car’s resale value as the loan amount.

Nevertheless, it is ideal to stick to a low LTV and make a higher down payment to secure better rates on your loan.

4. Minimum eligibility and document requirements

Lenders also need you to meet minimum eligibility and document requirements to qualify for the advance. However, these criteria are minimal and are usually based around your age, income, residential status, and such other necessary standard. Consequently, you would need to provide the relevant documents as proofs of your eligibility.

5. Quick and hassle-free approval

Eligible individuals can also expect to receive quick approval and disbursal of the advance following necessary document submission. With the best lenders, approval of a pre owned car loan can take as little as a few minutes.

Combine all these features with the repayment flexibility that reputed lenders provide, and a pre owned car loan becomes the best funding option for your used vehicle purchase. Make sure to consider the model and age of the vehicle as well as the remaining useful years as they can impact the interest rate levied, determining your loan affordability.