Choosing to purchase a used car is a wise financial move that provides several practical benefits. However, securing a low-interest used car loan is also essential. This crucial step can have a significant impact on the ultimate cost of the car. It also helps you manage your loan repayment with ease.
Bajaj Finance offers used car loans, providing borrowers with access to a significant loan amount of up to Rs. 1.02 crore. This product also comes with a range of benefits such as flexible repayment tenures and competitive interest rates.
Here are four ways to secure the best used car loan rates:
- Maintain a high credit score
Maintaining a strong credit score is essential when looking for the best used car loan rates. Lenders consider a strong credit history to be evidence of sensible financial behaviour, which translates into a lower perceived risk for them. A credit score of 700 or above is considered optimal for used car loans. Paying your credit card bills on time and reducing your existing debts are some ways to maintain a healthy credit score.
- Compare loan offers from multiple lenders
Lenders provide different interest rates and loan terms, emphasising the significance of shopping around for the best used car loan rates. You must explore numerous banks and NBFCs to identify the one that gives the best terms based on your creditworthiness. Consideration and comparison can help you save money in the long term.
- Avail pre-approved offers
Check to see whether you have a pre-approved offer from a lender with whom you already have a relationship. Existing customers of several banks and financial organisations can get pre-approved loan offers. By exploring this option, you may be able to obtain the best used car loan rates. Bajaj Finance provides pre-approved offers for used car loans, which can be checked by simply entering your mobile number and OTP.
- Select a shorter term
Opting for a longer loan tenure may seem attractive because of lower monthly instalments. However, it is important to understand that it often comes with a higher interest rate for used car loans. Longer tenures always result in larger total interest payments. However, shorter loan terms can result in significant long-term savings on interest expenditures. The monthly payments may be slightly higher, but the total cost of the loan will be significantly lower. This strategy eventually leads to more cost-effective borrowing.
Finding the best used car loan rates is simple if you keep the following tips in mind. Bajaj Finance offers used car loans with interest rates starting at 10% p.a.
Click on the link to learn more about this product offering.
