Is buying a car at the top of your shopping list this summer? Look no further! We have listed the best Car Loan deals that are up for grabs!
We go through a spectrum of feelings when making a big financial decision like buying a car. It’s a financially draining roller coaster ride, but at the end, there’s a car waiting just for you. Aah, total bliss! But, with a number of Car Loans on offer, buying a car has become fairly simple and pretty straightforward, even if it is a used car that you are seeking.
There are plenty of good loan options available if you are looking to buy a used car. To make the job easy for you, we have picked the 10 best Used Car Loans to help you get the best deal from the zillions available in the market. But, before you take your pick, here are a few tips you should keep in mind.
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Negotiate The Car Price
Yes, it’s possible! The best way to bring down the cost of the loan is to negotiate the price of the car. Approach multiple dealers for your car and check out the offers and discounts available. If the total price of your car comes down, the loan amount will drop simultaneously.
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Check Your Credit Report
It’s important to check your credit report before you apply for a Car Loan. Any discrepancy in your report can cost you. Knowing your credit profile will help you understand where you stand financially and will help ensure that banks do not charge you high interest rates.
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EMI And Loan Tenure
Before you choose the car you want, get an estimate of how much money you have for the down payment and what the loan amount will be. Your EMI is dependent on your loan amount and loan tenure. Try to keep your loan and tenure short. That way your interest outgo will be much lower.
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Avoid The Extras
Sometimes people tend to buy a number of accessories from their dealer that adds up to a sizeable amount. It may include anything from an audio system to central locking to gear locks. So, if you are taking a car loan, always factor in the price of accessories and the subsequent down payment you need to make for your car.
It’s best not to buy accessories from the car dealer since the prices they charge will be significantly higher. Buying it from a good accessories shop can help you save a lot.
Now, let’s check out the popular used Car Loan Schemes, shall we?
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HDFC Bank Car Loan
HDFC Bank Used Car Loan is a popular loan option if you are looking to buy a used car. HDFC Bank has collaborated with many pre-approved car dealers, which means faster approval and doorstep services for your loan.
- The loan allows you to borrow up to 80% of the value of the car with flexible repayment tenures ranging from 12 months to 60 months.
- The age of the car at the time of your loan’s maturity should not cross 10 years, subject to a maximum loan tenure of 60 months.
- HDFC Used Car Loans can be availed by salaried individuals who have a minimum of 2 years of work experience, with a minimum of 1 year with the current employer. If you are self-employed, you must have a minimum of 3 years of experience in the current business establishment
- Interest rate ranges between 12.75% to 15.50% depending on the segment and age of the vehicle.
2. Capital First Car Loan
- The loan allows you to borrow up to 90% of the value of the car with flexible repayment tenures ranging from 1 year to 7 years.
- The NBFC offers used Car Loans to salaried (regular income) and self-employed individuals who are above 21 years of age and below 65 years of age.
- Interest rate ranges between 13.50% to 14.50% depending on the segment and age of the vehicle.
- Pre-closure is allowed but only after six months and 4% of the principal outstanding amount plus taxes will be deducted as a pre-closure fee.
3. Dena Bank Car Loan
- You can borrow up to 85% of the value of the car with flexible repayment tenures ranging from 1 year to 7 years.
- The bank offers a floating interest rate that ranges between 9.05% to 11.50%.
- There’s no pre-closure or part-payment fee with this loan. Other perks include e-approval, doorstep service, and no guarantor required!
There you go! Make sure you compare Car Loan quotes from multiple banks before zeroing in on one. Don’t wait! Drive away in your dream car now!