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Best used car loans

A loan is the amount which one takes due to lack of finance. This loan may be secured or unsecured. Normally most of the lenders give loan against security. One takes loan for various purposes which would include personal loan, or loan taken for business. When a person takes a loan for purchasing a Car he usually takes the amount which is equal to the amount of Car or amount which is less in which one will self finance some amount by himself while some amount he would borrow from financial institution.

 

Concept of Used Car loan:-

 

When a person is not even in position to buy a new Car with the help of loan he may go for other option where in one can borrow loan for the Car which is already use and it is for resale by the owner. This type of loan is generally for poor people and middle class family. The interest rate on Used Car is normally less as compared to the new Car.

 

Interest rates types of Used Car loan:-

 

There are two types of Used Car Loans which would include secured Car loan and unsecured Car loan. In a secured Used Car loan interest rates are competitive and it is specially designed to meet the demand of each asset holder.Interest rates of the Used Car are determined of the value of the Car but interest rates are also slightly low as compared to interest on new Car, as people seeking this loan are considered. The interest rates vary from institution to various lenders. Interest rates on Used Car are normally 14% which is little higher and in some cases it may even go to 20%.

 

Benefits:-

 

Now even a middle class person can fulfil his dream of having a Car, as nowadays Car is considered as a status symbol. One can buy a Used Car that would definitely cost him much lesser than buying a new Car. If one is very fond of having luxurious Car he can have same Car which is already Used within the same range. The depreciation which is charged on the Used Car is considerably less so it can retain its original value which is very beneficial at the time when one wants to resell the Car. Insurance is the main factor which one should consider while buying a Car and the insurance cost for Used Car are less as compared to new Car s

 

One can make necessary changes in the interior if he likes by just paying minimum amount on it, one should also check the maintenance cost before buying the Used Car as sometimes the maintenance cost would be more than the actual cost of Car. The duration period for the repayment of loan is also one factor generally repayment of new Car loan is in 84 instalments, while repayment on Used Car loan is 36 months maximum. Thus one can conclude that buying a Used Car is more affordable and it is very beneficial to middle class people.

 

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