Demand for used cars is increasing because of their affordability. However, the wide variety makes it confusing to make an accurate choice. Here are four tips that will help you make an informed decision
1. Know your budget
Before you commence searching for a car, you must know your financial situation. Although the price of the vehicle may be lower, you need to remember that used cars may need additional maintenance.
It is likely that you may opt forused car loans to fund your purchase. However, the amount must be repaid through Equated Monthly Installments (EMIs). Therefore, calculating how much you can afford as the EMI will help you determine the second-hand car loan amount.
2. Find used car dealers in your location
Searching online for used car dealers in your area is beneficial. You can not only find such dealers but also compare the different models that are available with them. Furthermore, you may research on the prices offered by different dealers. Generally, dealers also provide beneficial information on second-hand car finance on their websites. Doing the research online will help you save time by eliminating the need to physically visit the dealerships.
3. Check the car’s history
You must check the history of the car before you make the decision to purchase it. Moreover, it is recommended that you establish a relation with the seller by contacting him. Checking with the dealers on the condition of the vehicle before making the choice is important. You must also test drive the car to assess the condition. It will also help to know if you are comfortable while driving it or not. The vehicle’s history is also important when you apply for a loan for used cars as lenders will not finance vehicles that are very old or involved in accidents.
4. Negotiate the deal
Negotiating does not have to be stressful when you plan and are reasonable. It is recommended you commence your negotiations with a lower price than what you are willing to pay. While negotiating the loan for a second-hand car, you must try to minimize your down payment based on your financial situation.
Buying a vehicle from a used car dealer is recommended. You may be assured that the dealer will check the condition and title of the vehicles. Furthermore, they will assist you in procuring the best used car finance deal. Consider the aforementioned and celebrate with the first drive in your own vehicle.
You can check offers for used car loans provided by different banks or NBFCs such as Mahindra Finance, [Capital First] or banks like HDFC which will help you in deciding the entire financial plan, right from deciding about the down payment to EMI tenure and cost of each installment.