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Used cars, second-hand cars or pre-owned cars have become popular amongst consumers nowadays. This is mainly due to the establishment of several organised used car dealerships across the country. These reliable car dealerships ensure that the second-hand cars are certified and well-maintained. When purchasing a used car from a private dealer, you have to worry about whether the car is a stolen property or if it is in working condition. You can do without this sort of stress when dealing with a reputable auto dealership.
The latest avatar of an age old adage is ‘old is sold’, and the rule applies to almost all our material possessions that are deemed aged, redundant and replaceable. A used car loan helps you procure an otherwise costly item that in mint condition would cost you a lot higher than its current ‘pre-owned’ state. Thus, allowing people with lower budgets to elevate themselves to the status of car owners. Aside from being a very comfortable option to purchase a ‘new’ car, a used car loan offers a dimension of simplicity, transparency and hassle free experience that is at par, and at times significantly higher than the corresponding car loan procedure for a new automobile. Want to own a car but are not willing to spend too much into the experience? What you seek is a well-maintained, reliable and springy used car that has aged gracefully, and consequently a second hand car loan to purchase it.
Immensely Pocket Friendly- Explained in simple associative terms, a second-hand car will cost less, thus, the pre-owned car loan financing it will also be a lesser number compared to its new-car alternative. Meaning, smaller monthly instalments to contend with.
Less Hassle, More Features- While most banks feature used car finance as an important component in their arsenal of products, the demand for it is naturally second to a new car loan. Thus, these products are customized to appear as customer friendly as possible. Meaning, lots of features and rebates at half the usual hassle associated with a new car loan.
Used Cars Are a Lot More Fun- When it comes to a pre-owned car, the choice of models isn’t dependent on its current on-road price. What would seem like a hefty investment for a new car of a particular model, seems very reasonable in the case of a second-hand car of the same make. Plus, the prospect of depreciation in pre-owned cars is considerably less when compared to new cars, thus retaining its original value when you intend to resell it at a future date. Importantly, the insurance costs of a pre-owned car is lesser compared to a new car.
On Bankbazaar.com, get a comprehensive glimpse of the various features, interest rates, eligibility criteria and required documentation for a second hand car loan as offered by an assortment of banks and financial institutions across India. All the information you want, in one complete package.
Step 1- On Bankbazaar.com’s homepage, access the navigational menu that is located at the top of the page and select the LOANS menu item. Next, select the USED CAR LOAN option off the various loan types listed. The resultant page helps you get an instant quote in terms of a plethora of used car loan options, as offered by various banks. Complete the simple requisite information and click on the ‘Get a Quote’ button. Now, spread before you are the various loan options. It’s time to choose!
Step 2- You must compare between the various second hand car loan options before you and select the one that most appeals to your requirements and budget.
Step 3- After the submission of the online application, you will receive an instant e-approval from Bankbazaar.com. This application is next transferred to your chosen bank from wherein a customer support executive will get in touch with you within a short duration of time. Meanwhile, you can track your application through SMS alerts and email.
Used car loans are repaid through Equated Monthly Installments (EMIs). You can use the online car loan EMI calculator that is available on the bank website to find out how much your used car loan will cost you on a monthly basis. The tool is easy and simple to use. It can be used any number of times for free. You can enter varying combinations of the loan amount, interest rate, and loan tenure to get revised loan repayment schedules. The tool will display instant and accurate results in the form of an amortisation table which represents the periodic loan repayment schedule of your used car loan.
The friendly financial tools available on our website make the whole EMI calculation process, as applicable to your old car loan, a simple and interactive effort. Essentially, follow these steps-
Based on individual banks, all or some of these documents will be requested to be produced at the time of the loan application,
The following list is a generalised view on the commonly expected requirements that form the basic eligibility criteria for second hand car loans. Banks, at their own discretion, may require additional proof and/or documentation to establish your eligibility for the said loan.
(* Numbers may vary for different banks)
The situation with used car loan interest rates, as perceived by the loaning banks, can be summed up as ‘great risks, greater rewards’. The banks are funding an old car, thus the funds offered are lesser as compared to a new car loan. Also, most second hand car loans offer the option of pre-payment with a very nominal penalty- a situation that is a likely scenario in cases wherein the old car may suffer a functional meltdown through the tenure period, and the car owner might decide to repay the loan at one go. Thus, understandably, the interest rates on used car loans is greater when compared to new car loans. In terms of the popular reducing balance model, the interest rates offered by some popular Indian banksare as follows.
Banks |
Interest Rates |
HDFC Bank |
|
State Bank of India (SBI) |
|
ICICI Bank | 13.75% to 17% |
Bank of India (BOI) | 11.45% (Upto 3yrs) |
Federal Bank | 15.45% to 15.95% |
Axis Bank | 16.50% to 18% |
Kotak Mahindra Bank | 17% to 20% |
Automobile refinancing is done by paying off an existing loan with a new loan. Refinancing a car loan is done for a number of reasons like reducing interest rates, lower the payments that have to be made every month or for other personal reasons. Most of the time people would want to lower the amount that they pay on a monthly basis towards a loan. This is done by either lowering the interest rates, by extending the loan payment period or by doing both.
Sometimes a car loan borrower will want to add someone or remove their names from the car loan. Refinancing is an easy way to add or remove a cosigner to the loan.
 Compare car insurance quotes to identify the plan that gives you the best premium rate.
HDFC Bank- One of India’s premier banking organizations, the HDFC Bank is also massively preferred when it comes to used car loans. The bank has strategic tie-ups with a number of authorized pre-owned car dealers in India, and highlights its offerings with a commitment towards faster loan approval and convenient doorstep service. Some of the basic features and benefits of HDFC Used Car Loan are listed below-
SBI Bank- India’s largest public sector bank is also a key player when it comes to used car finance. This loan applies for the purchase of a used vehicle that isn’t older than 5 years and may either be a passenger car, Multi Utility Vehicle (MUV) or Sports Utility Vehicle (SUV). The repayment tenure on offer is the longest in the Indian context, stretching upto 84 months. A listing of the features and benefits of SBI Used Car Loan are as follows-
ICICI Bank- One of India’s premier private sector bank, ICICI, is also a leading lender of used car loans. The loans on offer are highly customer centric and loaded with an attractive array of features and benefits that will appeal to the most discerning potential customer. The highlights of an ICICI Bank second hand car loan are as follows-
IndusInd Bank- An active player in the sphere of used car finance, IndusInd Bank offers comprehensive loan options when it comes to the purchase of a used car for personal or commercial use. The loan is offered for all makes and types of cars available in India. The salient features of this loan are as follows-
Capital First Used Car Loan - Capital First is a Non-Banking Financial Corporation that offers a wide variety of financial services to customers from different income groups with varying financial needs. One of its most popular products is the used car loan scheme called Used Car Elite Program, which offers finance for purchase of used cars at a low rate of interest. Customers can avail an LTV of 100% under this scheme. Some of the main features and benefits of Capital First Used Car Loan are as follows:
TVS Credit Services Limited- The loans on offer here are very affordable, with the availability of a wide range of flexible pre-owned car loan schemes. The company also boasts of a quick turnaround time, robust customer service and adherence to a transparent and customer friendly loan approval and disbursement process. The salient features of TVS Credit Used Car Loans are as follows-
The ideal choice is to compare the various pre-owned car loan options available online and apply instantly through the same medium. The contacted bank will reach out to you at a later date to finalize and confirm upon the associated documentation and other details.
No, most banks do not require a guarantor but may ask you to involve your parent/spouse/ offspring as a co-applicant if your income doesn’t meet the set eligibility criteria.
Any automobile available in the market. Some banks may finance vehicles that are only manufactured by an Indian company, but usually there are no restrictions in terms of the type and brand of vehicle available on the menu.
Usually, the loans on offer fund anywhere from 80%-100% of the used car’s on-road price.
This activity is known as ‘refinancing’ and it is a possibility with many banks. The value of the car can be encashed to meet your immediate monetary requirements, even while you actively continue to use the car. Ideally, you can avail upto 80%- 85% of the car’s valuation amount.
When should you think about buying a pre-owned car?
At the time of deciding on a new car, you would quite possibly turn to the internet for information on the best models out there. But be warned that you will be swamped with multiple theories on why one model is better than the other. The decision-making process also developed more tributaries when the used-car market saw a definitive boom in the country. Today, the prospect of owning a used car does not lack too much of the lustre associated with the purchase of a new one.
So when should you think about buying a pre-owned car? What are the advantages of doing so? Read this article to find answers to all this and more. Read More
Things to keep in mind when purchasing a car
Owning a car has metamorphosed into a basic necessity in modern times. The automobile industry is witnessing a steep growth each year as more and more youngsters are keen on buying a car instead of a two-wheeler, early on in life. The increase in disposable income of a fresh graduate (who steps into a salaried job with a fat paycheck) has contributed to the popularity that cars have gained as the preferred vehicle for purchase.
But there are several things you should keep in mind before you actually buy a car. Read through this page to understand how to assess your needs and make a prudent purchase decision. Read More
How to transfer the ownership of a used car?
The used car market in India is a flourishing industry. The convenience of acquiring a pre-owned car, coupled with an incomparable low price tag is what makes the proposition highly attractive to the average middle-class buyer.
If you are planning to buy a pre-owned vehicle in the near future, you should read through this page. It offers all the information you need to make a prudent purchase decision. Read More
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Buying a car has become a stress-free and pleasant experience, thanks to the plethora of car financing options available in the market today. If you have a decent credit score and a good income, you can be assured that you will receive financial assistance for the purchase of your dream set of wheels.
This page gives you an insight on the top car financing solutions available in the market. You will get an idea of the benefits of each plan and the eligibility criteria. The interest rates and charges for the car loans are also clearly indicated. So, if you plan to buy a car in the near future, you should definitely read through this page as part of your pre-purchase research. Read More
9 tips on how you can manage your car loan better
In the excitement surrounding the purchase of your new car, you should not forget about focussing on important details associated with the car loan application process. This page offers you all the information you need at the time of applying for a car loan.
For instance, making a huge down-payment is very effective in bringing down the EMIs. Also, your choice of car and loan tenure can greatly influence the repayments.
Think through the entire car loan application process and be equipped with all the required information before you actually apply for one.Read More
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The World Car Award committee chose BMW M5 as the winner of the 2018 World Performance Car Award at the New York Auto Show. This is the 7th World Car Award win for BMW over 14 years. The 6th generation BMW M5 series defeated 10 other cars in this category to win the award with its BMW 530e plug-in hybrid and a top speed of 3.2 seconds (0-60 kmh). BMW M5 is considered to be one of the fastest cars in the world and is powered by a twin-turbocharged 4.4-litre V8 petrol engine that generates 600 bhp power and 750 Nm torque. The engine is paired with an 8-speed torque converter to transmit power.
4 April 2018
Honda Cars India may see a reshuffle in the top management of the company from April. After the appointment of Gaku Nakanishi, the new CEO, the company will likely have a new head of sales and marketing in the new financial year. The head of operational sales and marketing will likely go to Rajesh Goel, a Senior Vice President of sales and marketing. After finishing his time as general manager of global purchasing at the company headquarters in Japan, Goel is now a part of the board of directors of Honda Cars India. One of his past critical roles in the company includes leading the localising of the Brio platform for the Indian market. The reshuffle also includes 6 other senior executives above the general manager level being moved to new roles.
2 April 2018
According to Mayank Pareek, the President of Tata Motors, Passenger Vehicles Business Unit, the carmaker aims to cover 95% of the market by 2020 with new products. The current market share of Tata Motors stands at 7%. The carmaker is committed to having an electric solution for all new car models going forward. As of now, Tigor is the only car with an electric powertrain in passenger vehicles line from Tata Motors. The company is estimated to grow by 7-9% in the PV segment. The carmaker plans to double its sales outlet by 2020 to 1,500 outlets from 800 outlets in 2018. The company will also establish a new format for sales based on digital technology.
20 March 2018
Eco Rent A Car which is an international car rental and ground transportation company is now the official transportation partner of the Solar Alliance Summit which is held at New Delhi. This first international summit is held at Rashtrapati Bhavan by the Ministry of External Affairs Government of India. Eco Rent A Car has arranged 500 cars for the transportation needs of the delegates and representatives participating in the summit that was held on 11 March. The fleet includes BMW, Commuter Hiace minivans, Toyota Innova, Toyota Coaster minivans, Toyota Camry, Audi, Mercedes E-Class, Mercedes Sprinter luxury vans, Mercedes S-Class, and few other smaller cars as well as luggage vans.
15 March 2018
Top car manufacturers in India reported a growth of 12.4% in car sales for the month of February. This growth was boosted by the high demand that came from the smaller cities. A total of 2,33,177 units were sold by Hyundai, Maruti Suzuki, Mahindra & Mahindra, Toyota, and Tata Motors collectively. Maruti Suzuki saw a growth of 13.3% while Hyundai posted a growth of 5.15%. With an impressive sales growth rate of 45%, Tata Motors sold 17,771 units and the company hopes to maintain this number by expanding its customer base. The sales at Toyota on the other hand, grew at a rate of 2.78% while Honda and Ford saw a growth of 18.24% and 8.43%, respectively.
5 March 2018
The domestic car market is ruled by Maruti Suzuki with a 50% share while Mahindra & Mahindra and Tata Motors rule the LCV market. Now, MSI is making its presence known in the Light Commercial Vehicles (LCV) market. It sold 460 units of LCV called the Super Carry during the April-January period of FY17 which has increased to 7,369 units in this fiscal year. Customers prefer Maruti Suzuki India’s LCV for its power, driving comfort, pickup, and mileage. The company is getting ready to expand in the LCV market. Currently, it has a single product in the segment which is available in diesel and CNG variants. Super Carry is sold through 172 new commercial outlets across 25 states in India. MSI ranks 5th in the LCV segment.
21 February 2018
Honda Cars India reported a domestic car sales of 4.83% at 14,838 units in January. The same month last year, Honda sold 15,592 units in the Indian market. About 422 units of Honda Brio, 2,257 units of Honda Jazz, 3,968 units of Honda City, and 2,836 units of Honda Amaze was sold last month. 4,273 units of Honda WR-V, the company's compact SUV was sold the same month while Honda BR-V and Honda CR-V stood at 1,071 units and 11 units, respectively.
7 February 2018
The car products by Volvo in the Indian market include S60 sedan, derivatives of its S90 sedan, V40 hatchback, XC60, V90 Cross Country, and XC90. The Swedish auto manufacturer plans to launch its smallest SUV, XC40 in the Indian market by mid-2018. Volvo officially confirmed that its first standalone EV will be launched in 2019. The standalone battery-electric hatchback will be a production version of the 40.2 concept that was earlier revealed in 2017. The battery-electric model will be launched before the launch of the electric variants of the existing Volvo car models. For the 40.2 concept-based model, Volvo is aiming for 499 km range.
2 February 2018
Like other luxury automakers (Cadillac, Audi, and Porsche), Mercedes-Benz and BMW are getting ready to launch their pilot programs for a subscription service. This service includes easy payment methods, insurance, and maintenance. Through this service, customers have the flexibility to swap their old cars for a new one quickly. The big test for subscription-based services will be when the new Volvo XC40 is offered with the Care by Volvo subscription service for $600 per month. Customers can get a new car after 1 year. The concept of subscribing to a car rather than purchasing or leasing is attracting more carmakers.
17 January 2018
India's largest automobile manufacturer, Maruti Suzuki India, has increased the price of its cars by Rs.17,000 in an effort to compensate for rising manufacturing costs. The hike in prices will range from Rs.1,700 to Rs.17,000 across various car models. Maruti Suzuki India sells a range of cars from hatchbacks like Alto 800 to crossovers like S-Cross which are priced between Rs.2.45 lakh to Rs.11.29 lakh. Tata Motors has increased car prices by Rs.25,000, effective from 1 January. Other carmakers like Mahindra & Mahindra, Hyundai Motor India, and Honda Cars have also announced a price hike from this month.
11 January 2018
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