Things to check while buying second hand cars on EMI

Indians are among the world’s most opportunistic people. They know how to make the best of any situation. They’re the same way when it comes to used cars. The used car market in India is thriving. However, the dishonest among us are also present, looking for easy pickings.

As simple as it may appear, buying second hand cars on EMI may involve several steps and potential complications. Let us first disassemble it and examine its constituent parts.

Documents to check before buying second hand cars on EMI

Registration certificate

A car’s title is the first and foremost document to inspect…

RCs function as a form of identification for the vehicle and its owner; if the details on the paper match those found elsewhere, the vehicle is legitimate, and the RC is valid.

Always ask for the original RC and walk away if you are not given one. Another telltale sign of a fake RC is the absence of ownership information, such as the number of owners the vehicle has had.

Car insurance

There is a legal obligation that all automobiles have insurance…

Furthermore, if the seller has filed any claims, you will know that the vehicle has been in an accident. This is why requesting proof of insurance from the seller is essential.

Purchasing invoice

The used car vendor will give you a bill of sale to sign over ownership of the vehicle.

Road tax receipt

When a brand-new vehicle is registered for the first time, its original owner will also pay the road tax. Always ask for the original RC and walk away if you are not given one. Another telltale sign of a fake RC is the absence of ownership information, such as the number of owners the vehicle has had.

Ensure the previous owner has paid the road tax; otherwise, you could wind yourself paying more for the fines than the car was worth.

The vehicle’s additional paperwork is incomplete without the original road tax receipt.

Service ook

It’s better to invest in a vehicle with a complete maintenance history. You may get a ballpark figure for your monthly payments by using a free online vehicle loan EMI calculator, either provided by the bank itself or by a third-party comparison portal. As simple as it may appear, buying second-hand cars on EMI may involve several steps and potential complications. Let us first disassemble it and examine its constituent parts.

How to buy second hand cars on EMI?

Second-hand automobile loans, like new car loans, are repaid through Equated Monthly Instalments over the loan’s term.

You may get a ballpark figure for your monthly payments by using a free online vehicle loan EMI calculator, either provided by the bank itself or by a third-party comparison portal. As simple as it may appear, buying second hand cars on EMI may involve several steps and potential complications. Let us first disassemble it and examine its constituent parts.

Enter the loan amount, loan term, interest rate, and processing fee for a car into the calculator to get an instant rate. The findings, presented in an amortisation table, a bar graph, and a pie chart, are instant and accurate after you click the “calculate” button.

The used car vendor will give you a bill of sale to sign over ownership of the vehicle. Reading these graphs, you can ensure whether you pass the pre owned car loan eligibility.

Types of EMI

Standard EMI

When selecting this plan, your interest rate and payment amount will be locked in for the duration of your loan.

Those with a regular monthly income that isn’t likely to fluctuate much might consider this option.

Structured EMI

The monthly payment (EMI) for a loan on a used car might be adjusted by this. Typically, monthly payments start low and progressively climb throughout the loan’s duration. Only those who expect an increase in their income shortly should consider this choice.

Conclusion

Purchasing second hand cars on EMI is an excellent way to realise your dream of owning a car. Nonetheless, compare products from various lenders to find the most refined used auto loan.

The used car vendor will give you a bill of sale to sign over ownership of the vehicle. The lower loan amount for a used car loan compensates for the higher interest rate.

Even though several lending institutions have pre owned car loan eligibility terms that you have to pass in order to get the loan.

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