Second-hand Car Personal Loan is a category under personal loans (available at Loan Singh), specifically for buying a used car. This is a common purpose selected by our borrowers when applying for an online personal loan at Loan Singh. Through this piece we will discuss the advantages of second-hand cars over brand new ones and also see how you can get the funds to buy one.
Nowadays, it is not a big deal to own a car. You have the income, you know how to drive, and you need the convenience. But, purchasing a brand-new car does not always go easy on your budget. You could be a novice at driving and won’t mind the bumps, scratches and dents while becoming more proficient. For such reasons, a second-hand car is a great choice.
Second-hand Car Personal Loan
Imagine passing by a used-car sales center and your eyes fall on this cool car which you would love to buy but you lack the funds needed. Good conditioned used cars don’t remain unsold for too long. That is why you need to get quick funds to buy a second-hand car. As you are not going for a new car, you easily dodge the hassles of a secured vehicle loan. So, the best option left for you to get quick funds is Loan Singh. Firstly, Loan Singh is a digital lending platform that allows borrowers to apply for a personal loan with only PAN details, Aadhaar and 6-months bank statement. Loan Singh involves no paperwork and provides an online process for loan application. You apply for a loan via Loan Singh’s website and get the personal loan disbursed in to your account within 48 hours.
Swift processing – At Loan Singh, everything from application to disbursement happens online. With only Aadhaar, PAN and Bank statement/netbanking credentials, you can apply for a personal loan and pay for your emergency requirements.
No collateral – Having no collateral requirement gives a personal loan an advantage over the secured loan. Even if you do not own any assets, you can at least get funds from Loan Singh.
Multiple purposes – A personal loan can be availed for a number of purposes such as purchase of household appliances, electronic gadgets, purchase of gold, holiday travel, home improvement, job relocation, medical expenses, home renovation, purchase of second hand vehicles, marriage, etc.
Loan amount and tenure – The loan amount for a personal loan at Loan Singh can range from Rs.50,000- Rs.5,00,000. The repayment is done via EMIs, with interest rates on a reducing balance method. The personal loan tenure can be from 3 to 36 months.
Loan Singh Application Process
The process to get an easy and quick loan with Loan Singh is mentioned below:
Get Started Page – Select ‘PERSONAL LOAN’ from the dropdown and enter the loan amount with the desired repayment tenure.
Registration page – Add your contact number, personal email ID, and corporate email ID
Profile Page – Fill in your name, gender, father’s name, number of dependents, and PAN Details. We use your PAN Card Number to check your Credit Score & as a KYC document.
Address Page – Choose your type of residence; mention your street address, city, state and pin code.
Job Profile Page – Mention your current designation, total work experience, company name, highest qualification, last institution attended, and monthly salary.
Financials page – Upload your latest 6 months bank statement either from your computer, GMail account or directly link your net-banking account.
Auto Debit Page – Provide permissions to your bank name, account number, and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI repayments.
Go Get Your Second-hand Car!
You have got the funds, now it’s time to go and get that car. Let’s get started.
Build a target list of cars you know will fit the loan amount (requires research). Look for used car dealers closest to you. You must be having some sort of inclination towards a particular car maker or a certain model. Narrow down your choices to the one which is not too old, travelled lesser kilometers, etc. Before making a final decision look at features such as air conditioning, boot space, leg room, fuel type, and tyre condition.
Check the vehicle history
Unless you are purchasing a second-hand car from a known associate or a family member (sellers you know), insist on looking at the paperwork and history of the car. This helps in finding out about any accidents that have happened and also facilitates in decision making.
Inspect the car
Lookout for malpractices such as odometer reset (to reduce the kilometers driven), patched-up dents, and missing accessories such as music player, puncture kit, etc. Listen for rumbling in the engine sound while revving. Check for engine oil level, coolant level, and status of wipers.
Test drive the car
Taking the car for a drive is a good way to reinforce your initial perception of the car. You can get a sense of car handling, the effectiveness of brakes, seat position, etc. You can understand ingress and egress. Also get a feel for the dials and switches, check the audio level on the system, etc.
Negotiate for a better deal
You don’t have to be a master at negotiating, but you can subtly put forth your points. Discuss any issues you found during the test drive and the overall inspection.
Complete the paperwork
Most dealers will volunteer to do the transfer of documents from the previous owner to you. The transfer would be of registration certificate, insurance papers, and some dealer paperwork (if needed).
Make the payment
With Loan Singh getting you the personal loan for the second-hand car, you can now transfer the funds to the car dealer and set the date of delivery. The car selected by you will now be readied by the dealer.
Advantages of Second-hand Cars
A brand-new car is cool but you need cash to get it. A second-hand car comes with its own set of advantages compared to a brand-new one. Let’s look at some.
With a second-hand car, you will get a wide variety of choices at a single dealer. You can get used models for Maruti Suzuki, Hyundai, Mahindra, etc. – all at one place and can then choose the one that suits you. Sometimes an older model, which is not in production anymore, could be your personal favorite. So, you can get your dream car only as a second-hand option.
No Added Charges
For a brand-new car, you will not just be paying for the manufacturer’s price but also the added charges such as GST, processing fee, preparation fee, shipping charges, and advertising fee. These can easily add up to thousands of rupees more which you can happily avoid by going for a used car. You maintain greater control while out in the market to purchase a second-hand car.
We all love the scent that emanates from a new car. The immaculate upholstery, 0kms travelled, even sans any fingernail scratches on the outside, etc. is something we love. But it does not come cheap. The price gap between a used and new car is huge. You will also argue that the interest rates on new cars are less, but the one-time amount you pay (inclusive of a new paint job, top-up of engine oil, coolant, complete interior and exterior wash, and more) goes easy on your budget. A personal loan can further reduce the average monthly spend.
If it is the paint getting chipped-off on gravel, the tyres start getting punctured or some other driver goes-off with your mirrors from the opposite side, you don’t feel too much of a heartache for a second-hand car. That is why it is suggested you learn driving on a second-hand car because the strain on your pockets is less.
New cars lose a portion of their value immediately. The moment a new car is bought it is not new anymore and will be sold as a second-hand. New car owners go through a plethora of emotions when the new car starts acquiring wear and tear going over Mumbai’s potholes or Goa’s beachside terrain. In the first year since purchase, new cars lose as much as 40% of their value. For a second-hand car, however, there is much less depreciation. You will lose less money less quickly and will avoid the hit the first owner took.
No need to scratch your head here, the annual insurance premium for a second-hand car towards accidental damage is cheaper. The value of a second-hand car is already depreciated which means you pay a lower premium than what you would pay for a swanky new car.
Many websites offer information on second-hand cars to make it easier for you to choose your car from home. Similar to how Loan Singh has removed the hassles that exist in the processes of traditional lending institutions like banks, there are websites that help you search for used cars by selecting the dealer close to you, and also provide details regarding the used cars such as price, availability, year, etc. You can also read user experiences which can help you make a better decision.
Gone are the days when a second-hand car emanated a sense of abysmal quality or lack of decent conditioning. The sooty scent, rusting interiors, unkempt cushions, tyres worn, kilometers driven, etc. are no more a problem. Dealers ensure that the used vehicles are re-worked and re-painted. They also provide free servicing for the first 6 months.
Do share with us your experience of buying a second-hand car, in the comments section below.