Used Car Loans

Nowadays, the used car market is facing difficult times. The production of new cars has increased manifold and these cars are hitting the market very fast. The prices of new cars are also coming down. They have become very easy on the pocket. Because of all these factors, demand for old cars is only in the niche market.

Used cars with special gadgets and special value or owned by celebrities have a very good demand. Apart from these, antique cars are also in great demand.

Loan can be availed for old cars on the following terms:

1.    The car should be road-worthy. It should be in good running condition.

2.    Title documents to the car are clear and legally valid.

3.    Spare parts and service outlets are easily available and the car has its

uniqueness – either it is antique or owned by a celebrity (it should have a market).

4.    The applicant to the loan has a good credit history. The credit score of the applicant should not be bad.

5.    The applicant should have a decent income or should have good financial worth.

6.    The used vehicle to be bought should be from a reputed used vehicle dealer with their usual guarantee terms or in case of purchase from individuals, it should have a certificate issued by a auto consultant/engineers as regards its condition, market value, residual life expectancy of the vehicle etc.

7.    EMI or loan repayment normally does not exceed the life expectancy of the vehicle or 5 years whichever is least.

Rate of interest charged is usually higher compared to new vehicle loan.

If you are interested in knowing about what must be done to get a used vehicle loan and where to get it, visit Used Vehicle Loan and to know about other types of loans that can be considered, especially mortgage loans, visit Mortgage Loan