123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

The Right Way To Take Car Loan For Used Cars

By Author: Neha Sharma
Total Articles: 108

There are many individuals who would like to purchase a car when they receive their driving license. However, there are several factors that influence the decision of buying a car. In this article, we give you the right way to take a car loan, especially for a used car.

Manufacture year and model of car

The age of the car and the model of the car play an important factor in the decision of the car loan. If the car model has been phased out of the market, it mostly won’t be supported financially especially when deciding for the car loan. Normally, the age of the car and the tenure of the loan are combined together and generally should not exceed more than 7 years. Therefore, the older the age of the car, the less is the tenure of payment. Therefore, if you are getting a car that is more than four years old, you will most likely not receive a car loan.

Interest rates

Normally a bank sends in a valuation expert to calculate the value of the car once you have decided to purchase the car. Based on certain factors like the current condition of the car, number of kilometers run, model of the car, etc, the car is evaluated and the bank or finance company will lend you the necessary car loan and car loan interest rate appropriate to it. Mostly you will get around 70% as the loan amount. If you have a good relationship with the bank, you can even get up to 90% of the value of the car with a good interest rate. The car loan interest rate is normally calculated on the combination of the model of the car, age of the car and the profile of the customer. You can also calculate the interest rate by using the car loan EMI calculator.

Organized dealer versus unorganized dealer:

With more efficient and cheap new models of cars entering the market, more and more individuals are selling off their old cards to buy new ones. Therefore, there are a lot more fresh options for you to choose from. Most vehicle companies have their own organized dealers. This means you have many options available in the used car market these days. These dealers go through a stringent process of identifying and sourcing these cars, certifying their value and deciding the resale value, thus reducing the financers risk in the process. They even offer a minimum 6 month warranty for such cars.

So, you must take the car loan on used car with due research only as quite a few factors affect its value and principal amount. Do use car loan EMI calculator to ensure that you have suitable EMI.


Author Bio :- Neha Sharma; a finance student has studied a lot about car loan interest rates and how to use a car loan EMI calculator. Thus, it comes as no surprise she would like to share this information to the public.

Total Views: 80Word Count: 494See All articles From Author

Investing / Finance Articles

1. The Southbourne Tax Group: Ready To File Your 2016 Taxes?
Author: Hefhef Horace

2. Find Best Rate For Car Loans Guaranteed Approval Online Today
Author: Mark Wilson

3. 3 Vital Barometers For Forex Trading Newbies: Rsi, Moving Average & Stochastic
Author: John Arnold

4. What Makes Currency Counting Machine Essential?
Author: Mark Batham

5. Dynamic Market Conditions & Forex Indicators For Trading
Author: John Arnold

6. How Does Same Day Bad Credit Loans Help Borrowers Faster
Author: Karen Turner

7. Live Life Hassle Free With Same Day Loans Available Online 24/7
Author: Karen Turner

8. Make An Effective Financial Plan With Beneficial Money Control Tips
Author: Santosh Sharma

9. No Fee Loans Direct Lenders – Fruitful Way To Acquire The Superior Cash
Author: Justin Beber

10. 12 Month Payday Loans Direct Lenders – Let You Getting Cash Confidentially
Author: Justin Beber

11. How Loans Facilitate Bad Credit People With Easy Cash Flow
Author: Ellie Brown

12. Tips To Choose The Best Tax Accountant
Author: Steve Sefcik

13. Choose Quick Loans Bad Credit Same Day To Get Money Within Same Business Day
Author: Karen Turner

14. Need To Know How Loans For People With Bad Credit Offers Easy Cash Aid
Author: Karen Turner

15. Get Online Money From Same Day Cash Loans Bad Credit
Author: Karen Turner


Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: