Pre-Owned Car Loan - Everything You Need To Know

The demand for a four-wheeler and pre-owned luxury cars have grown in India. People are opting for passenger vehicles within the budget and at the same time there is a significant market for other vehicles in the premium segment such as Mercedes-Benz second hand. Several factors have contributed to this shift among the car enthusiasts in India. It includes better income opportunities, growing aspirations, affordability of used cars, new platforms that enable purchase, transparency and reduction in the ownership years.

Did you know you can get a pre-owned car loan easily now? Yes, there are a plethora of financing options now available for customers to purchase their dream used car, which has made the process a lot easier. However, there are different factors that must be considered before making the decision. So, how can you get a pre-owned car loan? How is it different from other loans? What is the eligibility criteria? Find answers to these questions and much more.

Applying for Pre-owned Car Loan

The first step of applying for a pre-owned loan is to do proper research. Once you understand the different loan providers and their features, you can plan to ask different questions about the pre-owned car loan from them and get clarity. After researching and planning, you can go ahead and meet the lender. Clarify the payment process, EMI, Rate of Interest on the given loan, documentation requirement, eligibility criteria, prepayment charges and other details. Remember that different lenders have different requirements.

Documentation

Generally, for pre-owned car loan documentation purpose, you would need to first submit an application form either online or offline. Other documents such as identity proof, address proof and income proof would be required. In addition, you may need to give passport size photos and car valuation reports to the concerned authority.

Eligibility

A pre-owned car loan is given to only those who are eligible as defined by financing institutions, banks and other service providers. Typically, you would need to be aged between 21 and 65 years. You must have a salaried income which needs to meet the requirement set by the institution. Also, proper identity proof is necessary.

Criteria

Some financing partners will provide pre-owned car loans with 100% financing options, while others don’t. Also, flexible loans and impressive interest rates will be offered by a few depending on eligibility and other factors.

Application Processing

Once you submit the form and necessary documents, the application processing will take some time. Once approved, you will receive the loan amount. Else, your application will be rejected.

Auto Hangar is one of the leading dealers for used luxury cars in Mumbai. For comprehensive details about the pre-owned car loan and financing options you can contact us at any time.

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