Best Way To Finance a Used Car Loan

Published on: 29 November 2021

Modified on: 10 April 2023

Highlight: Understand the requirements and the loan process to finance your dream car with instant car loans.

The automobile industry is rapidly evolving, and the prices of cars are steadily going up. Owing to the high cost of several brand car models, it becomes difficult for many to invest in them. You may have to settle down for cars delivering lower performance than you desire due to the expense involved. Opting to buy a used car in place of a new one can be the perfect approach in this situation. It allows you to drive the vehicle of your dreams without busting your wallet. A used car particularly makes sense for first-time car buyers. It is also an excellent choice if you are planning to buy a second set of wheels in the family. And, the best way to finance it is through an instant car loan.

Multiple banks and non-banking financial companies, also known as NBFC, offer loans to used cars. The terms, conditions, and charges vary from one lender to another. You have the option to avail of an instant loan online today without having to deal with the hassle of spending hours at a bank. Today, financing companies allow you to get bank loans without lengthy paperwork, which can be a massive headache when borrowing from a bank. However, before applying for the loan, you need to identify the perfect used car to invest in. There are some factors you need to keep in mind while doing so.

Also Read: Should You Opt For Two Wheeler Loan?

Important factors to keep in mind when buying a used car

● Check the car: Thoroughly check the vehicle you desire. If you are unsure about how to do that, you can always seek the assistance of a mechanic. If there is any minor issue with the car, you may get the chance to negotiate its price. It will be a good idea to drive the vehicle in a low-traffic region and check for any vibrations.

● Go through the essential papers: It is imperative to inspect the vehicle’s registration certificate and insurance papers properly. In addition, you need to check if the chassis number and engine number on the car match the ones mentioned in the documents.

● Vehicle history: It is crucial to check the history of the car before purchasing it. It will help you understand whether there is any service issue prevalent in the car or if it has been in an accident.

● Transfer the Registration Certificate: After purchasing the car, the Registration Certificate (RC) has to be transferred to your name. A NOC shall be needed if the vehicle is registered in a different state. NOC is also required if the previous owner has purchased the car on loan.

● Transfer the Insurance: The insurance coverage of the car needs to be transferred to your name immediately.

● Service the car: While you want to take your car out for a long drive just after the purchase, it will be wiser to get it serviced first. You need to clean up the car and change its fluids before using it for the first time.

You must select the type and model of the car that effectively meets your needs and comes under your budget range. Most lenders consider the type and age of the car model before providing a loan. Hence, selecting a relatively newer model will increase your chances of acquiring the loan amount without any issue. After choosing your vehicle, you can always explore options for an instant car loan on the web.

Also Read: Financial Wellness Programs To Help Employees in The Wake of Pandemic

Important aspects of acquiring a car loan

● Sum-up the amount for your car: After zeroing in on a model, you need to calculate the sum of money to pay for it. You can apply for a small loan with a simple instalment scheme to afford to pay lump sum advance money.

● Set your requirement: You will also have to select the monthly installments and loan term as you decide your loan amount. It will majorly depend on your monthly income and future calculations. If your loan sum is relatively high, it will be prudent to go for a loan that has a long repayment period and involves attractive interest rates.

● Search for the available options: There are multiple governments and private banks, and institutions that offer to finance used vehicles. Many of them even allow you to avail of instant loans online. They have instant processing times and no lengthy paperwork. Such a simplified approach makes acquiring loans extremely easy for you. You can always explore and compare loan options and deals offered by reliable lenders online and choose which is best for your needs. Fibe is one of the best options available in the market to get an Instant Loan for Cars. We have a simplified application process with easy loan eligibility and documentation. Avail an auto loan up to ₹ 5,00,000 from EarlySalary and pay interest rates as low as Rs 6/day. 

● Submit the documents after verification: Most lending institutions ask for certain proofs and authorization that assure your income stability and identity. Therefore, you may have to submit copies of your Aadhaar Card, Voter Id, Salary Slip, Form 16, and similar documents to them. The exact documents required in the process shall differ from one lender to another. Once you have submitted all the documents, you will become eligible for acquiring the needed car loan.

 Before getting an instant loan online, it will be wise to check your credit score first. This will help you with an understanding of the amount feasible for you to borrow. If your credit score is low, it will be smarter to pay as much money you can from your own pockets while buying the car while keeping the borrowing amount to the minimum. People with a high credit score do not have to worry about any such problems. They enjoy a high loan amount, an extended loan tenure, and attractive interest rates.

While getting an instant car loan is easy today, you also need to be mindful of paying off its installments in time. There are many factors which may delay your payments. It can be due to a financial crunch or simply the fact that you forgot the due date. It is vital not to make such an issue your habit to steer clear of any penalties.

Bring your dream car home with Instant Car Loans by Fibe. 

Download the personal loan app here, or log in to our website and be a part of the #OneSmallStep experience.