With traffic and pollution increasing by the day, commuting even via public transport has become increasingly difficult. And let’s not forget about the weather and how hot and humid it’s become.
The fear of getting a sunstroke/sunburn has made it almost impossible to ride a two-wheeler as well. So, keeping all this in mind, the only resort you’re left with is a car. But, spending that much money on a four-wheeler might not be a particularly comfortable option for everyone.
What if we told you there was a way to get the best of both worlds? The comfort of travelling by a car, but without having to pay a bomb for it? Sounds too good to be true? Well, the good news is that it is actually attainable. This is exactly where used cars come in.
Additional Reading: Watch Out For These Cars In 2017
But, are you one of those people who think buying a used car is a bad idea? Sure, it may not give you the same feeling a brand new car may give you, but all things considered, it is still as good a deal as any.
If you still disagree, then maybe the following points could maybe help sway you mind.
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Here’s why buying a used car is a good idea:
Increased Comfort At An Affordable Price
If you’re looking for a set of wheels to save you from the scorching heat or provide cover from those torrential rains, purchasing a car could be the perfect option for you. If you’re looking to do this at an economical price, you then a used car can’t be beat.
Lesser Depreciation Values
Like almost everything tangible under the sun, cars lose value with the passing of time as well. In some cases, cars lose significant value in the first year itself. The good thing is that this sort of heavy depreciation applies only to new cars. When it comes to a used car, depreciation doesn’t hit you as soon as you buy the car.
Better Insurance Rates
The insurance rates also get affected by the age of your car. As compared to a brand new set of wheels, a used one always tends to be less expensive. All you need to do is research well before actually deciding which car to choose.
Old Is More Reliable
Since a used car is one that has been previously used by someone you have a clear idea about various features of the car, like mileage, top speed etc. Since you have a clear performance track record in front of you, it becomes easier to make a choice.
If all these reasons have convinced you enough to go in for a used car, then let us tell you more about the next step—getting a Used Car Loan.
Additional Reading: What To Do After Buying A Used Car
Have you heard about Allahabad Bank Used Car Loans? Don’t worry. Even if you haven’t, here’s all you need to know:
What Are The Features & Benefits?
Before going any further, let’s have a look at the main features and benefits.
Maximum Loan Amount
Allahabad Bank offers maximum funding for used cars. Under this scheme, you can get a maximum loan amount of up to 85% of the agreed purchase price or 60% of the valuation of the vehicle, whichever is lower. This is one of the most attractive features of this loan product.
Low Interest Rates
If you go by the usual trend, the rate of interest for Used Car Loans is substantially higher than that for new cars. However, when it comes to Allahabad Bank Used Car Loans, the story is a bit different. At 10.95% (Base rate + 0.75%), the interest rate for their Used Car Loans is one of the lowest in the market. How cool is that?
Premium Repayment Tenure
Allahabad Bank has made a great effort in providing the best and most flexible repayment tenures possible. Did you know that the loans availed on used cars can be repaid in up to 60 months (or residual life of the vehicle), which is a whopping five years?
Minimal Charges And Fees
With a minimal processing fee of just 1.20% of the total loan amount towards paperwork and handling, Allahabad Bank’s charges are very reasonable. In addition, there are no prepayment penalties either if the loan is paid off in full. In case of a takeover from another bank, the prepayment penalty is 2.25% of the outstanding balance.
Security Clause
As their security clause, until full repayment of the borrowed amount and interest charges is made, the vehicle is hypothecated to Allahabad Bank. But, once the Car Loan account is successfully closed, full ownership rights are transferred to the borrower.
Additional Reading: Your Handy Guide To Used Car Loans!
What Is The Eligibility Criteria?
Coming to the crucial part now. If you want to apply for an Allahabad Bank Used Car Loan, here’s the eligibility criteria:
- If you are a salaried individual, you need to be a permanent employee of the company with a minimum experience of two years, drawing a monthly gross income of Rs. 25,000 or more.
- Self-employed businessmen and professionals filing ITR on a regular basis can apply too. The income threshold is determined on a case-to-case basis.
- Agriculturalists and farmers with a minimum of five acres of irrigated land, and retired individuals drawing a monthly pension of Rs.15, 000 and above, can also apply.
Are those EMI calculations confusing you? Try our Car Loan EMI Calculator.
Still thinking about it? Well, after reading all these features and benefits, an Allahabad bank Used Car Loan should be right up your alley.
Want to look for more Used Car Loan options? Go ahead! We have them all listed for you.