Do car dealers offer loans on used cars?

Purchasing a four-wheeler, even a second-hand one, is a big decision. Today, many people are opting for pre-owned vehicles because they are budget-friendly, reliable and offer great value. But what if you do not want to pay the entire amount in one go? That is where financing options come in.

Let’s find out how car dealers support used car loans and how you can benefit from such financing offers.

Do car dealers provide loans on second-hand cars?
 

Here’s how car dealers help you finance your second-hand car through simple, accessible loan options.

1) Dealer tie-ups with financial institutions
 

Most authorised car dealers have partnerships with banks and NBFCs to offer pre-owned car loans. They act as a bridge between you and the lender, simplifying the loan application process at the showroom itself.

2) Help with documentation
 

Car dealers assist with the required documents. These documents may include registration certificate, insurance, and KYC. Such documents make the entire financing process smoother. This is especially useful for first-time car buyers unfamiliar with the process.

3) Loan availability depends on vehicle condition
 

Not all old cars are eligible for a loan. The dealer usually reviews the vehicle’s age, condition and mileage. Usually, four-wheelers under 10 years old with a good maintenance record are eligible for financing.

4) On-the-spot loan approval support
 

Some dealers even offer instant loan approval assistance by digitally submitting your application to their partner financial institutions. This saves time and gives buyers a better idea of the loan amount they can get on the spot.

5) Flexible down payment options
 

Dealers often negotiate flexible down payment structures with lenders, so you can get a loan amount based on your budget. You may be able to finance up to 80–90% of the car’s value through these dealer-arranged loans.

6) Pre-owned car loan options from banks at the dealership
 

Many reputed car dealers allow you to choose from multiple lenders. You can compare interest rates, repayment tenures, and processing charges before signing up. This ensures transparency and a better deal.

IDFC FIRST Bank's used car loan option - Benefits you can count on
 

When it comes to financing second-hand cars, IDFC FIRST Bank offers one of the most reliable and flexible loan solutions -

• With the IDFC FIRST Bank pre-owned car loan, you can apply online and get instant sanction with minimal documentation - making it hassle-free from start to finish.
• Benefit from a digitalised loan journey, where everything from application to approval can happen from the comfort of your home or directly at the dealership.
• For those looking for higher funding, the Car N Cash scheme of IDFC FIRST Bank offers loans up to 200% of your car's value, making it perfect if you need extra funds beyond the car's price.
• You can get an instant sanction of up to ₹15 lakh within 15 minutes for repurchase or refinance needs.
• Loan amounts range from ₹1 lakh to ₹2 crores, depending on your financial needs.
• IDFC FIRST Bank’s pre-owned car loans offer flexible tenures from 12 to 84 months, helping you manage your EMIs with ease.

Final words – Drive ahead, smartly
 

Financing a second-hand car does not have to be complicated. Whether through your local dealer or a trusted bank like IDFC FIRST Bank, there are smart options to suit every budget.