Is it a Good Idea to Buy a Used Car with a Loan in India?

Posted on Tuesday, September 5th, 2023 | By IndusInd Bank

A car is still an aspirational product for most Indian families. Purchasing a preowned car is a cost-effective way to bring home the vehicle of your dreams. An IndusInd Bank preowned car loan offers distinct benefits including end-to-end assistance all through the car-buying process, attractive interest rates, and up to 100% financing options.

The ownership of a car or four-wheeler has always held special significance in India. The proudly owned and painstakingly maintained ‘first family car’ – a symbol of upward mobility and affluence – in particular, continues to evoke collective nostalgia for a vast majority of Indian families. But while a lot of people think only of purchasing a brand new car, buying a preowned or second-hand car has its own set of advantages. Statistics indicate that the pre-owned car market in India has been steadily outpacing the new car market, and that it is expected to see a 12-14% compound annual growth rate (CAGR) over the next few years, surging from 3.8 million units in FY2021 to 7+ million vehicles by FY2026. If you are mulling over buying a used car and are wondering if it is worth taking a used car loanfor, read on to get the complete lowdown on the subject.

Top Five Advantages of Buying a Used Car

Depreciates at a slower rate

Ø  It is cheaper; hence, saves money

Ø  Lower insurance & registration fees

Ø  Greater scope for negotiation on the car price

Ø  Availability of easy financing options

A Brief Overview of Factors to Keep in Mind when Buying a Pre-Owned Car

Age & Model of the Vehicle: A car older than 5 or 6 years may not behave very well. Additionally, it is better to avoid purchasing models that have been discontinued.

The Overall Condition of the Car: All aspects of the car should be thoroughly inspected – interior, exterior, engine, tires, mileage – to ensure there are no major defects.

Paperwork Related to the Car: All paperwork related to the selected vehicle should be meticulously checked, including the registration certificate (RC), original purchase invoice, insurance papers, pollution certificate, road tax receipt, and servicing records, among others.

Transfer of Ownership: All vehicle-related documents from the RC to the Pollution Certificate and car insurance must be transferred legally to the new owner. This is necessary in order to prevent any potential issues if the car is sold again in the future.

IndusInd Bank Preowned Car Loan: Why It is a Good Idea

While it has been made obvious that a used car can give you good value for money, the question that still arises is whether or not you should take out a preowned car loan for this purpose. The answer is a resounding yes; it indeed is a good idea to buy a used car with the help of a loan. IndusInd Bank offers some of the best terms & conditions, ensuring you can bring home your dream car without the slightest delay.

The distinct benefits of an IndusInd Bank preowned car loan are as follows:

1) Enjoy unparalleled end-to-end service from research on the preowned car to title transfer and deal closure, ensuring minimum hassle and maximum help.

2) Simple eligibility criteria, minimal paperwork, doorstep banking assistance, and an instant disbursement process.

3) Unmatched used car loan deals with attractive interest rates, allowing you to save money.

4) Choice of wide-ranging loan repayment tenure options, from 1 year to 5 years.

5) Get up to 100% finance on your preowned car loan i.e. the entire amount of the car value, up to INR 25 lakhs. This may be subject to a bunch of factors such as vehicle cost & credit constraints.

As elucidated above, a used car loanfrom IndusInd Bank allows you to enjoy a vast array of benefits. A seamless, smooth process designed to eliminate the hassles of the second-hand car purchase exercise including research and paperwork, IndusInd Bank preowned car loans promise peace of mind and pecuniary benefits in equal measure.

Apply for a used car loan from IndusInd Bank today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.