Getting a car is a dream shared by almost every urban guy. There are a few desires you can’t explain, and getting a car is one of them. But buying a brand new car is not possible for most people in their 20s. However, that shouldn’t be the end of your dream. Buying used cars is a trend right now instead of a taboo. Things are so common that even banks allow finance for buying used car. So, why exactly is used car loan so popular right now? Well, here are few reasons:
Think about the best, most expensive car you ever had the fortune to drive. Now, here is a fact: that car will lose a quarter of its value within the first year of purchase. In the world of sales, cars are either new or old; the latter part begins with the first day out of the showroom. Car loan rates dwindle exponentially each year.
Thus, used cars generally provide you with the same model and almost same performance, at a much lower price. If you are not too choosy about used things, it is a deal worth grabbing. A detailed car loan comparison between new and used cars would show you the difference.
2) No hidden charges
The vast difference between the ex-showroom price and the in-road price consists of numerous charges like road tax, insurance, state MCD charges etc. In other words, you will have to pay for the car and all these taxes, before you can take your new car home.
In case of used cars, however, the taxes are generally paid already. Thus, whatever amount you negotiate is the actual amount, without any surplus taxes. This keeps things very simple for you.
Tips while going for used car loan
If you have decided to go for second hand car financing, there are things you should keep in mind:
- Your budget plays a crucial role while buying a car, new or old. Blowing your budget would pose issues while repaying the loan. While talking about budget, low second hand car loan interest rate should also be your priority.
- Some lenders offer a lower car loan interest rate if you have a good credit score, especially in case of a past car loan.
- Cars lose their value very quickly. It is advisable to opt for shorter repayment tenure, so that you are able to pay off the debt soon and are in a position to sell the car to buy a new one.
- While choosing a used car, you need to be extra wary about the condition of the car. Some sellers try to scam people by selling a badly-maintained vehicle, so have your complete inspection before you decide to proceed with the second hand car finance.
Used car loans might not sound very appealing, but they are excellent at fulfilling your dream without putting a burden on your wallet. Just a few simple formalities and you are ready to drive on the wide roads.