Buying a Used Car with a Loan: A Step-by-Step Guide

Sumit is planning to get a car to ease his commute to his office. However, as a first time buyer, he is unsure of the process and the intricacies of buying a used car.

Opting for a pre-owned car has its advantages, especially when it comes to finances. Unlike a new car loan, choosing a used car loan often means a lower borrowing amount and more flexible repayment terms making it more affordable. Besides, he will be ensuring that the car he chooses is certified and repaired beforehand.

Let us discuss the considerations, the application process, the eligibility criteria, and the documents required for buying a used car. 

Key considerations when applying for a used car loan

When applying for a pre-owned car loan, here are a few things to keep in mind - 

• Consider preferences, reliability, maintenance costs, and resale value when buying a used car
• Ensure that the car is certified. Which means that it’s checked, repaired, and ready to be used on road. Reliable platforms like Spinny offer certified cars for their user’s convenience
• Obtain a detailed vehicle history report to verify information on accidents and mileage
• Compare interest rates from different lenders, like IDFC FIRST Bank offers competitive interest rates of up to 11.49%
• Check your credit score before applying for a loan to secure better rates and faster loan disbursements
• Ensure flexible repayment options with the chosen lender, so it aligns with your financial goals
• Opt for reputable dealers like Spinny, a top-rated platform that sells pre-owned cars

How to buy a used car with an easy loan application process?
 

Here is a step-by-step guide to applying for a used car loan - 

• Choose your car model - Select your preferred car by evaluating requirements, budget, etc., considering fuel efficiency and reliability factors.
• Application and detail verification - Apply for a used car loan on the bank's website, providing personal details, proof of address, information about your income, etc.
• Select the loan amount - Select the loan amount and your preferred car model after completing the verification process. With IDFC FIRST Bank, you can specify your desired loan amount and pick a car of your choice from a wide range of pre-owned cars. 
• Submit loan application - After selecting a loan plan and car model of your choice, submit the application and wait for approval. IDFC FIRST Bank offers personalised assistance to ease your car financing journey. 
• Review and accept loan terms - Once approved, review and only then accept the loan terms, interest rates, etc.
• Finalise the purchase - After finalising the purchase, ensure all necessary paperwork, including the ownership transfer, is completed accurately. Once all paperwork is in order, the bank will disburse the approved loan amount. 

Eligibility for IDFC FIRST Bank used car loan 
 

Know your eligibility criteria before applying - 

Self-employed individuals - 
 

• Resident Indians between 21-70 years of age
• Minimum two years of business continuity
• Minimum income of Rs 1.5 lakh per annum

Salaried individuals - 
 

• Resident and Non-Resident Indians (NRI) between 21-60 years of age
• Minimum a year of work experience
• Minimum income of Rs 1.8 lakh per annum

Contact your bank to check the used car loan eligibility criteria. 

Documents required to apply for a used car loan
 

If you're applying for a loan with IDFC FIRST Bank, here is the list of documents that you'll have to submit - 

• ID & address proof (PAN card/ Aadhaar card/ passport)
• Last six months' bank statements
• Registration Certificate (RC) book and insurance copy of the vehicle

Buying a used car with Spinny
 

Spinny is a platform that provides customers with checked, reconditioned, and certified pre-owned cars for buying and selling. Here is why Spinny is a great option if you are buying a used car* - 

• Largest collection of fully certified high-quality used cars
• Warranty coverage and quality assurance of all cars
• Offers loan support on IDFC FIRST Bank’s offers, ensuring maximum user convenience
• Free test drive, car delivery at home, document collection and insurance
• Assured buyback available so you don't have to worry about the car's resale value
• Five day money back, no questions asked policy ensuring maximum customer satisfaction

*Conditions apply

Car financing journey made easy with IDFC FIRST Bank
 

IDFC FIRST Bank and Spinny offer a hassle-free experience in buying a certified used car on loan. Spinny's commitment to quality and customer satisfaction provides a trustworthy platform for convenient used car purchases. IDFC FIRST Bank ensures a seamless loan used car loan process with simplified procedures, flexible terms, and competitive rates. Achieve your car dreams effortlessly with IDFC FIRST Bank.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.