The popularity of used cars has increased significantly over the past few years and actually exceeds the number of new cars purchased each year. Because cars are always a depreciable asset, many people find that buying a used car is financially sound rather than investing in a new car. To obtain a used car, the Zavron Finserv offers a specially designed used car loan. These loans allow people who prefer to buy a used car through a new car to actually touch the object of desire. Used cars are offered at a greatly reduced price when compared to new vehicles of the same make or model.
Characteristics of Used Car Loans
- The loans that can be used for used cars are somewhat different from those of the loans that can be used for new cars in the market.
- The price of a car is considered road price with a margin of Rs. 25000 Registration, insurance, and accessories for used cars.
- Loans provided are generally about 60% of the road price of used cars and in certain cases can be increased up to 85%.
- When buying a used car loan, the maximum age of the vehicle must not exceed 3 years (5 years in special cases).
- Similar to existing new car loans, a 0.5% commission is charged on used car loans.
- The repayment period for used car loan is between 3 and 5 years and cannot be extended.
- Actual EMI for used car loans may be lower than most new car loans in most cases.
- The interest rate is applied according to the conditions specified by a specific financial institution.
- In the case of renting a used car, the deposit must be at least 15% in any case.
- As in the case of new types of car loans, pre-refunds are not required for used car loans.
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