The insurance costs of a pre-owned car are lesser compared to a new car. Image source: PTI
Want to own a car but are not willing to spend too much money? You can seek a well-maintained, reliable used car that has aged gracefully, with a second-hand car loan.
A used car loan helps you procure an otherwise costly item that would cost you a lot more than its current ‘pre-owned’ car, allowing you with lower budgets to elevate yourself to the status of car owners.
Features and benefits
Immensely pocket friendly. A second-hand car will cost you less, thus the pre-owned car loan financing will also be easier.
Most banks feature used car finance as an important component in their product mix. However, demand for this type of loan is naturally second to a new car loan.
When it comes to a pre-owned car, the choice of models isn’t dependent on its current on-road price. What would seem like a hefty investment for a new car of a particular model, seems very reasonable in the case of a second-hand car of the same make, Bank Bazar said in a report.
The prospect of depreciation in pre-owned cars is considerably less when compared to new cars, thus retaining its original value when you intend to resell it at a future date.
The insurance costs of a pre-owned car are lesser compared to a new car.