Here Is What You Should Know Purchasing A Second Hand Car With A Car Loan Posted By: nehasharma With expenses rising with the rate of inflation, plenty of individuals are thinking twice before making any financial purchase. This would also include purchasing a new car. Now a days, many individuals are opting for a second hand car, with the demand slowly rising over time. To support this demand, plenty of banks and financial institutes are offering financial support in the form of attractive car loans. Although it may be a simple affair, here are a few things you need to consider before opting for this loan: Lower loan-to-value: The loan to value for a second hand car is normally low as compared to a brand new vehicle. The range normally lies between 6 to 75%, wherein a brand new car would range above 90% for an ex showroom price or 85% for an on road price. A minimum down payment for such a vehicle would be around 15% of the car value, which can be expensive. While the bank or financial institute can fund 100% of the car value, it solely depends on the profile of the customer and the relationship with the bank. However, this only occurs in rare cases.
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