Key factors to consider while taking a used car loan – Check interest rates

financialexpress.com:

Lots of people are buying used cars these days and even financial experts suggest purchasing the used car owing to lesser entry cost and saving money if you are taking a loan for it. New cars are not just costly but overall expenses can be higher if you stretch your budget beyond your repayment capacity.

One of the primary reasons for buying used cars is their cost-effectiveness. New cars tend to depreciate rapidly in their initial years, but a used car’s depreciation is slower. Therefore, used cars come with a lower price tag, making them more accessible to a broader range of consumers.

Financial institutions often offer lower interest rates on used car loans compared to personal loans, making them a more affordable option for potential buyers. This means you can own your dream car without burning a hole in your pocket.

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Physical Inspection: You must inspect the car inside and out. Look for signs of rust, dents, and scratches. Inspect the tires for wear and tear, and check for uneven wear patterns which might indicate suspension or alignment issues.Take the car for a test drive and pay attention to how it starts, runs, and handles. If possible, get a mechanic to inspect the car.

Legal Checks: It is crucial to verifythat all legal documents are in order. This includes the RC, insurance papers, pollution certificate, and any outstanding loans or dues on the vehicle.

Maintenance Records: Check for the car’s service and maintenance records. A well-maintained car must have regular servicing and repairs documents.

Negotiate the Price: Try to negotiate the final price based on the condition of the car and other issues which might help you reduce the cost. Never