A lot of information about loans for new cars is easily available over the Internet. However, there are few sites providing accurate information on second hand car loans and adequate details are also not available. The following article tried to throw some light on the general rules for used vehicle loans, but in no particular order.
1) It is always better to apply for a bigger bank rather than considering offerings from small lenders. This helps get a better idea of the competition.
2) Interest rates on loans for used cars are higher than those for new cars. The interest rates are calculated on the basis of age of the vehicle, model and customer profile. Loans cannot be availed for cars more than 4-5 years old. If a new car is financed at 11-14%, a used car would cost 14-16%.
3) At best, 75% of the vehicle’s value can be financed b…