Potential used car buyers need not worry about making cash arrangements as a pre-owned vehicle or Used car loan provides the required funds. Loan seekers also have the option of customising their EMI amount, thus enabling them to regulate their cash flows.

During the months when their cash holdings are low, they pay less towards their EMI amounts, whereas they may increase their EMIs if there is a surge in their incomes. With such loan flexibility options, those in a cash crunch need not worry and drive home the car of their dreams.

Benefits of availing of a Used car loan

Following are the four benefits of availing of a pre-owned car loan

1. Flexible repayment plans

Those with financial issues have the option of customizing their repayment amount according to their incomes and cash holdings. Lenders offer various plans like Step Up plan, Step Down plan, Balloon plan, and regular EMI plan. Borrowers may therefore prepay their EMIs or make late payments based on their cash flows. Such flexible repayment plans provide a great degree of convenience to borrowers during a financial crisis.

2. Avoid tedious documentation process

Used car finance comes to the rescue for those in dire need of finance. Most lending institutions these days approve loans without any tedious documentation procedure. If the applicant fulfils the car loan eligibility criteria and submits the required documents, the loan is approved quickly. The loan amount gets disbursed as soon as possible and the applicant may drive the car home immediately.

3. No guarantor needed

Used vehicle loan is an attractive option for those who do not own assets like real estate or shares. Lenders these days do not require any guarantor against the loan. However, the loan is secured against the vehicle. Hence, if the borrower defaults on his payments, the bank can take ownership of the vehicle.

4. Prevents borrowing from friends and family

Many-a-times people turn to their friends and families during a financial crisis. However, the dynamics of the relationship changes if they are unable to repay the amount on time. At such times, availing of a loan seems to be a feasible option. Borrowing a loan from financial institutions is a wiser decision than putting relationships with family and friends at risk.

Individuals who do not have the outright cash in hand to purchase a used car may avail of a used car loan. There are many loan options available in the market for those with bad credit. Such loans have lower down payment and flexible EMI plans, thus allowing those with poor credit to borrow a loan easily.