Debunking Car Loan Myths

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. Instead of spending exorbitant money on a new car, a second-hand car loan allows them to own a car at a lesser price and with the lowest interest rates.

There are certain myths assorted with buying second-hand cars. These myths vary from person to person making the second-hand purchase questionable. So, let us debunk some of the common ones and spread the glorious benefits of second-hand car purchases.

  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 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.

  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 laon but not the only one. Multiple lenders will offer you a deal based on many other factors. So please check with your lender regarding what deal they can offer you. You may be charged a higher interest to make up for the risk being carried out by lending you a loan with an average credit score.

  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 a 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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