You can now purchase a second-hand car with a Pre-owned Car Loan at attractive interest rates and a repayment tenure of up to 7 years. Find out what a Pre-owned Car Loan is and how you can apply for it.

Buying a used car can be a smart investment if you are able to negotiate a good deal. Most car manufacturers today have their own used-vehicle division and although used cars come at an economical price, you may still require fund assistance. If the four-wheeler of your choice doesn’t fit your budget, you can buy it with a Pre-owned Car Loan.

What is a Pre-owned Car Loan?

A Pre-owned Car Loan is a loan type that enables you to purchase a used car through a convenient loan application. Avail benefits such as attractive interest rates and a flexible repayment tenure of up to 7 years.

That said, here are a few things to keep in mind when going for a used-car loan:

High Rate Of Interest: The rate of interest on used car loans are generally higher compared to those on new cars, because of the higher associated risk. While the new vehicles come with the manufacturer’s guarantee on the vehicle and parts, that is not the case with a used car. “There is no clarity on the state of the car, the number of accidents that might have happened, the condition of the parts and the engine, and so on. So, it is considered as a drawback. Besides, the financer also views the profile as slightly riskier,” says Abhinav Kaul, vice president, strategic partnerships, BankBazaar.com, a financial services website.

Type And Age Of Car: Factors such as the type and age of the car matter when going for a used car loan. For instance, the average lifespan of a car is usually considered to be 15 years.