People who dreamt of owning a car within their budget and as per their requirement has been fulfilled by the used car loan. However, when it comes to the overall process of applying for a loan, people tend to find it difficult to navigate through the banking jargon. It is easy to get tangled in the number of banks, loan features, loan jargon, and what not. Now, how to unclutter the noise to find the best loan for your requirements?
We are going to discuss that and much more in this blog. So, fasten your seat belts as we uncover the minute aspects to find out the best way to finance used car loans.
- Bank or Dealership – Which is better to get a second hand car loan
- What is the best way to get approved for a car loan online?
- Benefits of going online to finance a car
- Things to keep in mind to find the best loan features online
- What is the smartest way to finance a car?
1. Bank or Dealership – Which is better to get a second hand car loan
Innovation has had a major impact on the banking sector. Gone are the old days of the long queue and wasting hours to find a suitable loan deal. Today, you can do it all from the confines of your home. All you must have is a running data plan on a smart device to access the website of the respective provider.
Today, you will not only get public sector banks or private sector banks, but also get NBFCs where you can apply for a loan. They have reduced the troublesome procedure, as well as improvised the most hassle free process. Now applying for a car loan and getting its approval is just a few clicks away.
There are plenty of online e-commerce providers that have aligned with the leading banks and NBFCs. These platforms, aided by technology, seamlessly bring the leading banks and NBFCs in direct contact with the applicants.
2. What is the best way to get approved for a car loan online?
It is quite easy to get your loan application approved online. Within a few seconds, you can know the status of your application and proceed ahead to discuss the loan features based on your credit score.
For a successful used car loan application online, you must have:
- Right documents: These include your address proof, PAN/Aadhar card details, professional documents, and others.
- Favorable credit score: A credit score between 600-900 is considered a favorable credit score to go ahead with a loan application. Anything below 600 is unsatisfactory for a loan application. Though, a credit score between 600-750 will have to incur a huge interest rate. Above 750 is considered as a good score. So, it is always advisable to check credit score before applying for any loan.
Once you upload the necessary documents on the website, within a minute, the loan decision i.e., if your loan application is approved or not is made known to the user. Based on the credit score, the banks and NBFCs associated with the online platform get in touch with you to discuss the loan terms and conditions.
This is the best part of going online. You are not sitting in a bank with an executive pestering you to decide. You can take your own sweet time to check out the loan terms and conditions offered by other banks and pick the best loan for your requirements.
3. Benefits of Going Online to Finance Used Car Loan
Compile all the hassles associated with the traditional process of getting your loan application approved from a bank and you will find that, by going online, you are making many of them negligible. So, be it long queues or failure to understand the loan features with full clarity, there are plenty of benefits of going online to apply for used car loan.
- Top used car loan interest rates
Banks and NBFCs take into consideration your credit score to decide the loan terms and features. With an online medium, you are conducting multiple inquiries simultaneously instead of getting into prolonged negotiations with a single lender. You have the freedom to pick the loan with best interest rates at your own pace.
- Ease of information
You can access all the information you need on the go. Though it is the used car loan interest rates that tend to be the major talking point for applicants, make sure that you are getting to know about the EMI breakdown, repayment plan, and grace plans if any. There is no scope of miscommunication online and in any case of doubts, you can simply get in touch with the service providers for better clarity. Also, before proceeding must calculate your EMI as it is important aspect which can provide you information before applying.
- Hassle-free & convenient
It is the overall process of loan application that is intimidating in nature. Especially, for people who are not too aware of banking terminologies. Add to that the noise at the banks and you feel like a boxer pushed into the corner with no time to decide. When you go online, from the negotiating power to freedom and enjoying the comfort of your home to file for an application, the overall process is a seamless one.
With benefits as such, it is no wonder that people are opting for online medium to find the right financing for the used car loan. Also, many online platforms offer you paperless second hand car loan which furthermore makes it easy to file for your loan application.
4. Things to keep in mind to find the best loan features online
It is tricky to find the best used car loan features. Though it seems if you move on a mainstream, you will get the best offer, still you may not be completely satisfied. But here are some points which will actually help you to avail the best.
- Calculate your credit score before applying for a loan
- Get financing quotes beforehand if credit score is low
- Loan tenure should be short
- Increase the down payment up to 20%
- Do not include taxes and other fee payments within your loan
These tips are essential to keep in mind if you are aiming to get the best used car loan.
5. What is the smartest way to finance a car?
The smartest way will be to find a complete package. Droom Credit surely brings a sophisticated 360-degree automobile e-commerce platform for buying/selling used vehicles. From buying, selling, financing, to other aspects of buying a used vehicle, the company makes sure that you do not have to search high and dry for the top vehicle or top deals. So, why wait and lose out on exciting used cars. Get online to buy used cars along with easy financing at the lowest interest rate.