When you plan to purchase a four-wheeler, a second-hand car lets you own a better model at a fraction of the cost. However, depending on your budget, you may still need used car financing to cover its cost. If you are worried about making a down payment on the car loan, it’s good news that you can now purchase used cars with zero down payment.
Are you wondering how these funding options work? Here is a guide that explains everything.
Know the Meaning of a Second-Hand Car on Zero Down Payment?
Zero down payment second-hand cars are
used car loans that do not demand a down payment. In this case, the loan provider agrees to finance the car's complete value you want to purchase. In fact, reputable lending institutions like
Hero FinCorp provide an LTV ratio of up to 175% to cover the repair, insurance, documentation, registration, and other costs.
Benefits of Opting for Used Cars with Zero Down Payment
Should you purchase used cars with no down payment? Look at the benefits it provides.
- Immediate Ownership: Since you don't need to save money for zero down payment used cars, you can purchase your desired car immediately and get its ownership.
- Lower Initial Costs: If you purchase zero down payment second-hand cars, you can bring your favourite vehicle home without spending anything from your pocket. The lender will cover the entire ownership cost.
- Faster Approval: The online loan application procedure eliminates the need for extensive paperwork, making faster approval possible without any delays.
- Opportunity for Better Investments: The money you save by not spending it on a vehicle gives you an opportunity to invest it elsewhere and earn better returns.
- Higher-Value Vehicle: Since the lender will cover the cost of the car and spread it out in easy EMIs, you can opt for a better car with a higher price tag.
Also Read: Things To Know About Buying A Used Car In India
Tips for Finding Reliable Sellers for Used Cars on Zero Down Payment
When looking for 0 down payment used cars, follow these tips to find the best sellers:
- Research and Compare Prices: Explore various options and choose one that best suits your requirements and budget.
- Check the Vehicle History Report: Check the vehicle’s history report to get an idea of its maintenance, insurance, repairs, accidents, etc.
- Get a Pre-purchase Inspection: Take an expert to inspect the vehicle before purchase.
- Check for Incentives and Rebates: Look for used car dealers offering incentives and rebates on used cars under 3 Lakh or more.
- Explore Financing Options: Check out the various financing options offering used cars with zero down payment.
Also Read: 10 Second Hand Cars Under 2 Lakh In Delhi
Legal Aspects to Consider to Buy Used Car with Zero Down Payment
Check out these legal aspects when buying 0 down payment used cars:
- Sales Agreement: A legally binding sales agreement gives you complete car ownership.
- Title Transfer: Get the car transferred in your name to get its ownership.
- Bill of Sale: The bill of sale is proof of purchasing the used car at a specified rate.
- Inspection and Warranty: Check the car’s inspection and warranty, if applicable, to protect your rights.
- Zero Down Payment Terms: Read the agreement thoroughly to understand the terms and conditions of used cars with zero down payment.
Also Read: 10 Best Second Hand Cars In Delhi
Conclusion
With used cars requiring no down payment, you no longer need to keep your car purchase on hold due to a hefty down payment. Hero FinCorp allows you to purchase your dream car by offering used car financing with an LTV ratio of up to 175%. The interest rates are reasonable, and repayment terms are flexible.
Frequently Asked Questions
1. Can I buy a car with zero down payment?
Yes, many loan providers finance used cars with zero down payment.
2. Is EMI on the down payment zero?
The zero down payment option allows you to purchase a vehicle without paying anything upfront. However, it spreads the entire cost in EMIs that you must pay during the pre-determined loan term.
3. What is zero all in downpayment?
A zero down payment means purchasing a used car and paying its cost in EMIs without paying anything upfront.
4. Is it good to have a down payment?
A down payment reduces your loan requirement, eventually lessening your loan amount requirement and making repayment more manageable.
5. Can I buy a car with a 1 Lakh down payment?
Since you can easily find used cars under 3 Lakh, a 1 Lakh down payment would be a good amount to make.
