Advantages of Buying a Pre-Owned Car

3. One Can Cross-Shop Between Segments

Cross-shopping between segments is something quite impossible for any new car, but when it comes to a used one, this is quite a trend. For example, you can get a '08 Honda City (NHC) upgraded to '13 Honda Accord 2.4 AT, i.e. two segments higher domain.

4. Possibility of Lateral Upgrades

Lateral upgrades stand for selling and buying used cars for not-so-much money as the original would be. This transaction lets you live with a car that is profusely positive.

Assess a Pre-Owned/ New Car

1. Check Ownership History/ Paperwork

A used car must come with all the required paperwork, this makes you drive your vehicle without any subconscious thoughts of getting caught or doing something illegal.

2. Check Service & Insurance History

Everyone knows the value of insurance when the insured thing is something this big. So peek into the history and know the insurance status. This way you would also know if the car has undergone any repairs or has had an accident.

3. Try & Buy a Certified Car

Buying a certified car keeps you away from frauds. The dealerships that provide certified used cars make the car go through a detailed checkup. This check not only reveals any defect but also the parts that are worn-out. The certified cars are a little expensive but worth the cost.

4. Check The Reliability Ratings

Reliability and popularity might not go hand in hand, but you should definitely check the reliability ratings of the car that you wish to buy (both the ratings must be checked i.e. new as well as old).

5. The Newer/Lesser Run, The Better

A car that is old enough but has not been on the road much should be usually avoided, as this might cause several problems for you in the long run.

Financing a Pre-Owned/Used Car, Points to Know

1. Loan Amount - As already mentioned, the car loan amount can range from 90% for new cars to 70-80% for the used cars.

2. Interest Rate - Car loans are one of the most expensive loans in the market. You can get a new car loan at 9.2-9.25% from government banks, but the same can shoot to 12.65% for a used car. Some private banks might offer a car loan at an interest rate of 11-12% for a new car and 14.5-16.25% for a used one.

3. Vehicle Age - The terms and conditions of car loans vary with the vehicle age. This is because after the vehicle reaches a certain age, banks decline loan requests. Hence, you must be aware of these policies.

4. Loan Tenure - The age of the vehicle affects the tenure of the loan. You can get tenure of 8 years from some government banks for a new car, however, this goes down to 3 years if you buy a used one.

Eligibility & Document Requirements

You will need at least the following documents for this loan to be approved.

• Identity proof
• Address proof
• Income proof
• Vehicle registration & insurance papers

So when are you getting the #Wheels of your #Dreams..?