The year 2020 will long be remembered as the year of the COVID-19 pandemic. It is already been referred to as the year of the Great Lockdown. In March and April of the year, many countries across the world imposed strict lockdown, bringing life, as we know it, to a halt. People were hopeful of beating the corona virus but as the year ends, many countries are experiencing the third phase of the outbreak. People are scared to step out for fear of getting infected, and many people who earlier took the train, cabs, bus or auto, are fearful of the public transport. Social distancing in a bus or an auto, especially in crowded cities and towns in India, is almost impossible. Even with the vaccine in sight, the reality is that it will take several months for everything to return to normalcy. The trend is to own a vehicle. Owning a vehicle, either a car or bike, is neither difficult nor extremely expensive, contrary to what many people believe.
Buying a new vehicle is more expensive than buying a used car. But, instead of dipping into your savings, you can look for low-interest car loans for used vehicles. Most people are aware of car loans, but only a few are aware of that Muthoot Capital Services Ltd. offers loans for used vehicles. We can help you fuel your dream of owning a vehicle with easy instalments!
Our vehicle loans are designed to make it easy for you to own your dream car or bike. A used car loan gives you the freedom to choose a model you want to own with affordable interest rates and flexible repayment options.
The process of getting the loan is simple and easy. Here are the steps you need to follow:
Vehicle owners are usually concerned with the lifespan of their vehicle. This is perfectly understandable because a car involves costs that are additional to the initial purchase price. You will need to check on registration cost, insurance, service costs and repair costs, if any. Buying a used vehicle, especially with a used-car loan needs some research and inspection. Make sure you get it checked by a mechanic and take it for a test drive before buying.
Here are a few things you need to keep in mind:
A vehicle which is about 3-5 years old, is the best buy. Check the vehicle’s odometer to compare the number of kilometres it has run against the year of manufacturing. Next, check the engine. It should start smoothly. For example, a good engine will not emit any black or blue smoke during acceleration. Also, check for oil spouts from the exhaust and other leaks. Examine the wear and tear of the tyres, including the Stepney, to know whether you need to change them.
Make sure your ownership of the vehicle before applying for a loan. Get the registration certificate which proves the ownership of the car. The engine and chassis number should match with that on the registration papers. Get a lawyer to help with all legal documents so that any mishaps or accidents related to the vehicle, before the date of actual purchase, do not become your liability.
Check for the vehicle’s value in the insurance policy. Look for prior accident claims. If accident claims have been filed, check the status of no-claim bonus. This factor will help you in negotiating the price. The insurance certificate is must for transferring ownership.
A vehicle requires oil change, and other services regularly. Ask the owner for service records. The best thing to do after buying a second-hand car or bike is to let take it for a service. It will take care of all wear and tear. Remember, a well-serviced vehicle will provide a smoother and safer ride.
You will have to transfer the insurance to your name. As for the process, you need to contact the insurance company. NCB is given to the insured and not the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to the new owner but not the NCB.
For this, you should fill out and submit Form 29 & Form 30, issued by the RTO in the jurisdiction you live in. The form should be signed by both the previous owner and you. If the vehicle is registered in a different jurisdiction from yours, then an NOC from that jurisdiction’s RTO will help speed the process. This registers the transaction, and you will need it to get the used car loan approved.
The process of buying a used car is more time consuming than buying a new vehicle but is recommended for first time car owners and for people who don’t are on a limited budget. Apart from checking the model and body, you need to research the factors mentioned above. It will ensure you are getting the best vehicle within your budget. Do not compromise on your safety by saving on services and repairs. With Muthoot Capital, you can get the funds as a loan you need to buy used cars, and ensure they are safe to drive. Our loans come with low interest rates, hassle-free procedures, and faster approval processes.