What should you check while applying for second-hand car financing? 2021-22

Planning to buy a second-hand car on loan? It is a good option if you are planning to practice your driving after recently receiving your driving license.

Or you may already have a car and do not want to spend on a brand-new one right now.  Choose your favorite model from the various sites dealing in used cars.

You can book appointments, make payments, and apply for loans, entirely online. You can also ask your dealer for loan offers on a car, so that he can check your eligibility with multiple banking partners online.

second-hand car
  • Save
second-hand car

There are certain things that you need to check while applying for second-hand car financing:

Go through the car papers

Before making the payment, check the car papers thoroughly. Check the long-term insurance papers to see if there have been claims or accidents.

The best way is to see if the policy has any no claim bonus (NCB). The engine number and the chassis number should match in the papers.

Other crucial documents are the service book, a Valid Pollution Under Control certificate, and a No Objection Certificate if the previous owner bought the car on loan.

Ask for an extended warranty if available as it will also keep the maintenance bills under control.

Transfer the documents: second-hand car

Get the registration certificate transferred to your name. Fill out and submit Form 29 and Form 30. Make sure to get the form signed by yourself and the previous owner of a second-hand car.

You have to initiate the process along with the application for loans. After submitting the form, the RTO will initiate the transfer and you can get the car receipt usually within 15 days.

The owner’s name gets changed in the RC copy within 40 to 45 days. Get the third-party car insurance policy transferred to your name or you can buy a new policy altogether.

Age of the car

If you are buying a two- or three-year-old car, it may be in good condition as it would not have depreciated much or there has not been a lot of wear and tear.

Also, check whether the lender has any restriction regarding the upper age limit of the car. You will find it easy to get second-hand car financing for vehicles that are up to five years old.

Generally, banks do not provide loans for cars that are more than ten years old. In these cases, you have to approach the car dealer to provide in-house financing.

Renew or buy car insurance

Having car insurance is very important as you will get fined or jailed if you drive without the document. If the car already has an insurance policy, you may renew it on time or upgrade it or cancel it to buy a new policy.

Ensure that the car is always covered. You may buy add-on policies for extra coverage at a slightly higher cost.

Follow the above tips when you are looking for buying used cars. Go through the documents thoroughly, especially the car insurance papers, registration certificates, etc.

Getting a loan on an old car is a good decision as you do not have to make the entire payment in one go and can avoid any stress related to the funds.

However, stay away from any car that is older than ten years because it would be difficult to get second-hand car financing. You can apply for loans and make the payments online to avoid the hassles of paperwork.

There are digital platforms for used car buyers and sellers, that provide instant and paperless loans. Get the registration certificate and insurance papers transferred to your name while you complete the payment process. second-hand car

About zikraproduction92 315 Articles
My name is Rja Anwar shaikh and I am a blogger, digital marketer, and creator. I started by doing these jobs for money. Wonder how I Built up my personal website name "www.zikrainfohub.com" My blog Upcoming Thoughts evolved from my own personal thoughts scattered, About Business, how to make money online, and education, and soon became an influential member of YouTube.

Be the first to comment

Leave a Reply

Your email address will not be published.


*