Used car finance is a service that is extended to people that are looking to buy used cars or previously owned cars. There are multiple advantages of getting a used car loan. Used cars provide better value for money, low insurance, low rate of depreciation, low registration charges, and low amount of finance. It is a profitable option for someone that is looking to buy a car for basic transport but is not prepared to shell out a large amount of money. You can get a pre-owned loan for ensuring safety and security for your car offers. You can buy an all-weather vehicle that works the best for your car. You can enjoy the repayment schedule to add more glory to your driving experience.
These Are the Steps to Procure Used Car Finance:
- Application for the loan: The first step to procure used car finance is to apply to a company or bank that provides such services. You must ensure that you meet the eligibility requirements for such a service. The basic requirements are such like the applicant must be between 23 and 35 years of age, and that they must be a salaried individual working for either an MNC, a private company, or in the public sector.
- Processing of the application: After you have carefully entered your details in the application and submitted it to the company, you must wait for the application to get processed. The processing of an application for used car finance usually takes somewhere between twenty-four to thirty-six hours. An executive from the company usually calls you during this time.
- Documentation: This is the most important part of the process of procuring a used car loan. The documentation that one provides is very important to ensure that they are eligible and financially responsible enough to avail the loan. For salaried and self-employed people, the documents that are required are PAN card, proof of address, a copy of the applicant’s signature, photograph, salary slip, and a three-month bank statement. For companies or businesses, the documents that are required are ownership certificates, licensing agreements, proof of address, an audited balance sheet of the profit and losses of the company for the past one year, and identity proof of the owners of the business.
- Sanctioning of the Loan: After you have submitted the necessary documents, the bank or the financing company starts its sanctioning process. This process does not take more than two to three days. After your loan is sanctioned you will get a call from the company to meet them about the disbursement of your used car finance. There are companies which offer you loan where it is a fixed rate loan and no collaterals are required in any case.
- Disbursement of the loan: The final step of this process is the disbursement of the loan. It will be deposited to your bank account by the financing company or the bank. It is up to you and your dealer whether you want the transaction to be made in cash, credit card, or cheque. It is always wise to make sure of these details before the procurement of the loan.
Thus, we can see that the procurement of used car finance is an easy and a pretty straightforward process. One only needs to follow the abovementioned steps carefully to ensure that they can avail a used car loan. Now there are many online used car finance and loan companies that offer you exclusive membership values and services. These come at affordable rates. The only things that you need to check are the papers and how can they allow you to get the finance in a hassle-free manner.