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Cars Q&A

Is there any way to get loan on used cars. As i m planning to buy a car which will be for first time i prefer to go for used car since i dont know driving i'll be learning it. but i wana go for used car maruti alto-mumbai. so pls tell me if there is any laon system on used car. Generally people who take car on loan and dont re-pay their vehicle is takeover by company so that sort of car i m looking for.
By Shriya Sharma 06 June 2009

Yes loans are definetly available for used cars.A loan is available for upto 8 years from the date of manufacture.e.g if u intend to buy a 2004 model car then u can take a loan which can be repaid by 2012 and not longer than that.similarly for a 2006 model car the loan can be upto 2014.These bank cars are difficult to come buy and may have a shady history,since you are interested in an alto,the best place to look will be a Maruti True Value outlet where the history of the car is verified before selling and these people also give a 1 year warranty along with 3 free services like in a new car so their is grater peace of mind..Hope this helps..cheers..!!

Answer by Rohit 06 June 2009

All privatised banks do finance for used car, but the rate of interest will be higher by 2-3% than what you get for a new car, and max period of repayment term will be 3yrs only for used cars. Instead of looking out for siezed cars you can go to Maruti true value you will get the best deal and condition of the vehicle will also be good and you get warranty. hope this is helpful. All the best.

Answer by Karthik 06 June 2009

Hi Shriya,

Yes you will be easily be able to get a loan on a used car. It would depend on the car you wish to buy, the year of manufacture of the car and the loan tenure. The loan amount would also be dependent on the quality of maintenance of the car/ any accident history of the car. Lesser the genuine mileage of the car , the better. Maruti has a true value shop that conducts a detailed check on used cars and certifies the same. Do give a visit to the maruti true value shop before takin a decision.

Normally banks do not offer loans on used cars for more than 3/4 years maximum.

My suggestion to you is that if you plan to learn driving a car, do it in a motor training school and not on your own purchased car. The unfriendly usage of the clutch, gears, brakes, and the strain on the engine due to driving while learning a car is far more than normal driving.

It would be advisable to buy a car that is re- possessed by a bank on account of non payment of dues. But do check for originality of the papers, insurance [ first party details ] and any police history with the vehicle.

Any car loan is ultimately a personal loan but the rate of interest for a used car loan is much higher than normal. Do a reality check on that too.



Answer by Anand 06 June 2009
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Please send your details to You can also apply through Finance link in home page.

Answer by Shiva Shankar 10 October 2009
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