Banks, credit unions, auto dealerships and online lenders all offer used car loans.
Which bank is best for used car loan?
Most banks and NBFCs provide used car loans.
Top Lenders Offering Pre-Owned Car Loans.
|Lender||Interest Rate||Repayment Tenure|
|HDFC Bank||13.75% – 16.00% (Rack Interest)||7 years|
|Punjab National Bank||Starts from 8.30%||5 years|
|Axis Bank||14.25% – 16.25%||5 years|
|Kotak Mahindra Bank||Contact the bank||5 years|
How do you get a loan for a used car?
How to get a used car loan?
- Step 1: Choose your car. Visit a reputable dealer with a good track record of selling pre-owned cars. …
- Step 2: Apply for the loan. Go online or contact the bank offline to apply for the loan. …
- Step 3: Finalize the loan. …
- Step 4: Submit documents. …
- Step 5: Drive away!
Will banks loan on older cars?
Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a new car. But, banks are far from the last option when it comes to auto lending.
Is it better to get a bank loan to buy a car?
If you can’t afford cash, a personal loan is usually the cheapest way to finance a car deal – but only if you have a good credit score. You can get a personal loan from a bank, building society or finance provider if your credit rating is good. … Make sure the loan is not secured against your home.
How much can I get for a used car loan?
Personal Loan for Used Cars
Get affordable interest rates on loans up to Rs. 25 lakh. Choose a flexi interest-only loan and lower your EMI by up to 45%.
How can I get a low interest rate on a used car?
To get the lowest rate on your car loan, you need to get the shortest loan you can possibly afford. Stretching the length of your loan can get you a lower payment, but you’ll pay more in the long run. Car loan annual percentage rates are set by market forces and by the amount of risk taken on by the lender.
What is the maximum term for a used car loan?
There’s no right or wrong length to finance a used car. The loan term that’s right for you can be as short as 24 months or as long as 84 months – it all comes down to your current financial situation and future plans for the vehicle.
What are the documents required for used car loan?
|Documents Required||Individual Cases|
|Income Proof||Latest 2 Salary Slips & Latest Form 16||1. Latest ITR|
|Bank Statement||Latest 3 months Bank Statement|
|Age Proof||PAN / Driving Licence/ Passport/ Birth Certificate|
How do I get a loan from the bank for a car?
- Check your credit report.
- Apply for auto loans from multiple lenders.
- Get preapproved for an auto loan.
- Use your loan offer to set your budget.
- Find your car.
- Review the dealer’s loan offer.
- Choose and finalize your loan.
- Make payments on time.
Is it better to get a loan from bank or dealership?
In some cases, however, a dealer may negotiate a higher interest rate with you than what the lender offers and take the difference as compensation for handling the financing. … In general, you can usually get lower interest rates on a new car through a dealer than on a used car.
How old of a used car should I buy?
So for used car shoppers, purchasing a car that’s two to three years old and driving it for three years results in some of the lowest costs for recent model cars.
Can you finance a car over 100 000 miles?
Can I Finance a Vehicle With Over 100,000 Miles? Yes. Some banks will finance vehicles with high mileage because they understand that vehicles last longer than they used to.
Why you should never pay cash for a car?
When Paying for a Car With Cash Might Not Make Sense
On the other hand, there are some arguments against using your own funds to buy a car. For example: You might deplete savings that are necessary for current expenses or future emergencies. You may not have enough to buy a safe and reliable car.
What is the smartest way to buy a car?
1. Get preapproved for a loan before you set foot in a dealer’s lot. “The single best advice I can give to people is to get preapproved for a car loan from your bank, a credit union or an online lender,” says Philip Reed. He’s the autos editor at the personal finance site NerdWallet.
What credit score is needed to buy a car?
What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.