- Car Loan

Debunking 3 Myths about Used Car Loans

Used Car loan has been a standout among popular loan products because it gives multiple benefits to the customer. Where they would be spending more money on a new car, a second hand car loan gives them the opportunity to own a car in very less price and at the lowest interest rates.

Then you must be wondering why are people not buying a pre owned car? That’s because there are many myths associated with it. But don’t worry. As today we are here to debunk these myths and get you up to date with the real facts.

  1. 1. Not more than 1 person can apply for a second hand car loan?

This is the most popular myth. People have a lot of budget issues and hence sometimes cannot afford to get a loan for it. Hence they don’t end up purchasing a car.

But we must tell you that you can apply for a used car loan with your spouse or a family member. They can become a co-applicant in your loan application. The best benefit here is that you will get better deals and you can split the burden of loan EMI with them.

  1. 2. No good credit score? Then no second hand car for you!

Please note that having a very good credit score is one of the requirements for a second hand car loan. It is NOT THE ONLY requirement. There are multiple lenders that will offer you deal on the basis of many other factors. So please check with your lender regarding what deal they can offer you.

  1. 3. You cannot get more than 100% financing on a used car:

The last myth we wish to debunk is that people often think they cannot get more than 70-80% of the car amount as loan. But we are here to tell you that Banks can even offer you more than 100-120%* of the car’s value as the loan amount. You can sort out registration and other expenses with this loan amount.

So now that we have debunked these 3 main myths about a used car loan, you can go ahead and apply for one today and bring your dream car home.

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