• English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
  • Punjabi

Avoid These Common Used Car Loan Mistakes


by Mahindra Finance


June 29, 2023


3 mins read

If you are planning to buy a used car then you are in for some work. A used car surely has the benefit of being more affordable. However, you need to find the one that is in the best possible condition. You also have to get the right used car loan so that you do not have to overpay in interests. All of these require some planning. You cannot afford to make mistakes. Here is a list of the common mistakes people make while availing of a used car loan.

1. Not researching about the lenders

Finding the best loan option for buying a used car requires you to spend some time researching about the lenders. Many lenders will offer you a good contract on the loan, but only one of them will offer the best deal. You need to spend some time online comparing the interest rates and down payments of the loans. Find a balance between the reparation of the lenders and the benefits of the loan. You should not just settle for any lender to get the cheapest loan. However, refrain from selecting the most popular lender who charges a high- interest rate.

2. Not valuating the used car properly

A proper used car valuation is the first step of buying one. Do not just rely on your instinct for this process. Once you decide on which model of car you want, look for the used car seller near you who has that particular car. Visit the showroom and see the car for yourself. First, check if the interiors and the exteriors of the car look in decent shape. From the music system and air conditioner to the tires, check every aspect of it. Ask for the paperwork and maintenance history of the car. Find out if the car had ever been in any accident, and what repair work it had needed.

3. Not hiring a third-party inspector

The second-hand car loan you have taken requires you to pay interest on a regular basis. You surely do not want to use the money to buy a used car that is less than adequate. A thorough inspection of the car is required before making any final decision. It might be a smarter decision to hire a third-party car inspector. They can help you to figure out if the car is worth the buy. The final step is to take the car for a test drive before finalizing a deal. Get a feel of the vehicle while driving it. That always helps to make the right decision.

4. Not negotiating on the price

Not everyone can negotiate well, but that does not mean you should pay whatever the car dealer is asking for. You should not pay more than the used car finance you have from the loan you have taken. Try to get the best possible deals on the car before completing the paperwork-related formalities. The car’s insurance and the registration document have to be transferred to your name before you can legally own it.

Only when all the above steps are completed, you can be sure of getting the best out of the entire deal.

Related articles

Second Car Loan – 5 Tips To Increase Your Chances Of Approval

Introduction: Are you in need of a second car but already have an existing car loan? Many individuals find themselves in this situation, whether it’s for a new family member or work-related need...


May 13, 2024

How to calculate EMI for car loan: A step-by-step guide

Buying a car is a dream for many. To fulfil this aspiration, many, who may not have enough savings to buy their dream car in cash, take car loans from banks by paying a small down payment. Such car ow...


February 7, 2024

7 Reasons Why Tracking Your Car Loan Balance Is Important

Introduction Owning a car brings joy and convenience to our lives. It allows us to commute comfortably and carry out our daily activities with ease. However, when it comes to financing the purchase of...


May 13, 2024