In India, the pre-owned/used automotive market has experienced significant expansion. According to Autocar India, the used car market outperformed the new automobile market by roughly 150% during the most recent fiscal year. By 2030, all significant financial and automotive institutions forecast a huge increase in used automobile sales in India.
Experts agree that the used car sector will flourish due to the many benefits it bestows upon the buyer.
The Benefits of Buying Used Cars in India
Pre-owned car market growth In India is not unprecedented because of its many benefits. Let’s look at some of them.
1) Value for money
The cost of acquiring a used car is far less than getting a new car. Even if you opt for a car that is only a few months old, you get a stellar deal. However, if you want an even better price, you can go for a car that is older than a year or two. Such cars, if chosen carefully, can come at a third or fourth of the original price without any major issues.
2) Depreciation cushion
A new car’s depreciation begins the moment it rolls out of the showroom. Within a few years, a new car loses more than 50-60% of its value. However, after you buy a used car at a low price and decide to resell it sometime later, you don’t lose that much on it because the first owner had absorbed the depreciation bump while selling it to you or the used car dealership.
3) Better Financing Options
Banks and other financial institutions offer lucrative options when it comes to availing of a used car loan. credit success, for example, finances up to 90-100% of the car value on a wide selection of hatchbacks, SUVs, sedans, or premium cars when you apply for loan for used car in India.
Loan for Used Car in India
A good second-hand car can be bought with the help of a pre-owned car loan. A loan for second-hand cars is provided at attractive interest rates and you can choose flexible repayment tenures. You can look for the best loan offer for used cars, before applying for a loan. credit success offers the most affordable loan scheme for a pre-owned car.
Apply for Pre-Owned Car Loans
Applying for a pre-owned car loan is a quick and hassle-free process. Application for a loan can be submitted to the desired financial institution, either online or offline. After that, you submit your documents. After a swift verification process, your loan application gets approved, and the funds are disbursed instantly.
you must consider these factors, before applying for a pre-owned car loan:
Working condition of car: Make sure that the car you plan to buy, is in proper working condition
Check the papers thoroughly: Check if the engine number and chassis number on the car match the ones mentioned on the copies
Vehicle history: Check for the car’s history of accidents and penalties. It is important to ensure that any fines or dues were fully paid by the previous owner/owners
Transfer the Registration Certificate: Once the car has been purchased, ensure that the Registration Certificate (RC) is transferred to your name. If the car is registered in another state, a NOC is required. If the car has been purchased on a loan by the previous owner, a NOC is required as well.
Transfer the Insurance: The car insurance policy must be transferred to your name immediately. The insurance policy is void in case it is in the name of the previous owner even if the RC is in your name.
Eligibility criteria for used car loan:
Here’s the eligibility criteria for pre-owned car loan:
- Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 55 at the end of the loan tenure
- Individuals who have had a job for at least 2 years
- Those who earn a minimum annual income of Rs. 2,50,000
Required document for pre-owned cars:
Any of the following documents can be provided as Identity & Address Proof:
- Valid passport
- Permanent driving license
- Voters ID Card
- Aadhar Card
All the following documents can be provided as Proof of Income:
- Latest salary slip
- Latest Form 16/Latest ITR
- Bank account statement for the previous 3 months (for salaried individuals)
The Bottom Line
The pre-owned car market in India is all set to grow by leaps and bounds. More and more people will buy used cars due to its many benefits over purchasing new cars. You can avail of a variety of loans, including Pre-Owned Car Loans from credit success at competitive interest rates. For more details, contact us online and our representative will get in touch with you.
