Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Vehicle > Common Mistakes to Avoid While Getting a Used Car Loan

Loan for Vehicle

Common Mistakes to Avoid While Getting a Used Car Loan

Common Mistakes to Avoid While Getting a Used Car Loan

Buying a car is not only a financial but also an emotional decision. People upgrading from two-wheeler or buying a car for the first time often want to be doubly sure about their driving skills. Hence, used cars become their first testing ground. 

Know More About Used Car Loan

To buy used cars could be a task for many due to financial constraints, but not with a used car loan. If you have zeroed in on your favorite car from the pool of second hand cars and are looking for a used car loan in India, you first need to understand the common mistakes that loan seekers often make, and avoid them. Here are some of them:

Longer tenure, low EMIs

No! The mistake that most of the used car finance seekers make is opting for a second hand car loan with a longer tenure. You may see the short-term benefit of easy EMIs but in the long run, you end up paying much more above the set budget. The ideal way is to keep the loan tenure short but within your comfort zone. This helps to put a brake on the unnecessary interest outflow.

No down payment, shopping car at zero rupees upfront

Another trap most of the finance seekers fall into is driving away with a car with no down payment. The offer may appear irresistible, but it will only increase your EMIs later. It directly means that either your EMIs will get larger or your tenure. Either way, you end up paying more interest in due course of time. 

Additional Read:- Quick Tips While Buying a Used Car

Not comparing the used car loan options

Used cars were rarely financed earlier, but the situation is different now. With the influx of several finance companies in the recent past, the customer is again the king. You have an array of options to choose from when going for a preowned car loan. Compare interest and terms and conditions of multiple loan providers before zeroing in on a particular company.

Going beyond the budget

Your set budget could be tinkered when you get into a conversation with the salesperson. Often, you get carried away by the ‘advice’ or ‘only for you’ scheme of the marketer and end up opting for a vehicle priced higher than your set budget. The increased amount may look slightly more than your limit, but it leads to unnecessary lengthening of the tenure or increased EMIs.

Financing the add-ons and accessories

Financiers often offer to include car accessories and other add-ons in the loan amount. No, they are not empathizing with you. It is their way to earn more interest from you. If you buy into such schemes, the amount will be added to your overall loan, and EMIs will increase accordingly. 

Additional Read:- What do People Look for When Buying a Used Car Online?

Make sure you are extra careful when in the used car market looking for loan options. Buy second hand cars with the assurance of Tata Capital and its attractive interest schemes for used car buyers.

Apply Now

Your Smooth Ride Awaits: Take a Quick and Easy Vehicle Loans!

Apply now
Popular Searches
safest car in india car down payment pdi full form tax benefit on car loan pdi checklist best cng mileage car sedan cars under 10 lakhs what is adas top rated electric cars best sedan cars in india
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.