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.
- 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.
- 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.
- 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.