5 Simple tips to get the best Used Car Loan interest rates

Auto5 Simple tips to get the best Used Car Loan interest rates

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Learn about Bajaj Finserv Used Car Loans and see how you can get attractive interest rates.

Thinking about buying a car? It is like opening a door to a world of possibilities – road trips, errands made easy, and the freedom to go wherever you want. But buying a car is a big-ticket expense especially if you are eyeing a brand-new shiny one. That’s where used cars swoop in as the budget-friendly alternatives.

Buying a used car may seem more affordable but may still require a large sum of money. In such a situation, used car loan comes in handy. It provides you with easy access to funds and allows you to bring home the car of your choice without hassles.

With used car loans, you can spread the cost of your second-hand vehicle into manageable monthly instalments and repay your loan easily. However, one of the most important factors that affect the cost of your loan is the interest rate.

Getting a used car loan at competitive interest rates may lower your monthly instalments and help you save on the overall cost of the loan.

Let’s have a look at these 5 tips that can help you get competitive interest rates on a used car loan:

  • Make a big down payment:

Making a larger down payment not only lower your loan amount but it also shows financial responsibility to the lender. It can help you to get a loan at affordable interest rates. By putting down a chunk of cash up front, you’re essentially lowering the risk for the lender. This means that it could lead to a better deal on your interest rate.

  • Establish a reasonable budget:

Before you start your used car search, set a budget. Include everything – from the cost of the car itself to taxes, fees, and potential maintenance expenses. Also, keep in mind that a larger down payment can mean a smaller loan amount, which often translates to a lower interest rate. But remember, don’t stretch your budget too thin. Keeping it reasonable can help you avoid higher interest rates or financial stress down the road.

  • Maintain a high credit score:

Your credit score plays a very important role in determining your eligibility and impact your interest rates. Credit score is one of the most important things that the lender checks before approving your loan. The higher your score, the better your chances of getting a lower interest rate. So, before you apply for a loan, check your credit history. A score of 720 or higher is considered ideal for securing a used car loan with favourable rates.

  • Keep a low debt-to-income ratio:

Your debt-to-income ratio is a measure of your financial health. Lenders pay close attention to this ratio when deciding on your interest rate. Keep your ratio low to increase your chances of scoring a better rate. If it’s too high, you might face rejection or be stuck with a higher interest rate.

  • Reveal all your sources of income to the lender:

Your income is a crucial factor in determining your interest rate. Lenders want to see that you have a steady stream of income to repay the loan. If you have consistent income and a reputed employer, you have chances to get a more affordable interest rate.  

Lenders such as Bajaj Finance offers used car loans that come with competitive interest rates and flexible repayment tenure, making them a go-to-financing solution for borrowers.

If you keep these above-mentioned factors in mind, your chances to secure the competitive interest rate for your used car loan is higher. If you are looking to get quick access to a high-value loan, choose Bajaj Finserv Used Car Loan and get up to Rs. 77 lakh.

With Bajaj Finserv Used Car Loan, benefit from the asset-based financing and get funds up to 100% of the car’s value. You can fulfil the simple eligibility criteria and get the funds you need within 48 hours* of approval.

You can also use the used car loan EMI calculator available on the website of Bajaj Finance and evaluate your EMIs in just a few clicks. All you need to do is enter the loan amount, interest rates and tenure, this online tool will generate the EMI amount you need to pay.

Visit the Bajaj Finance website now and apply for your used car loan today!

*Terms and conditions apply

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