Are you planning to buy a used car? There are a lot of financial agencies that provide loans for the purchase of a second-hand vehicle. Going for a second-hand vehicle is much better as it reduces the cost of more than 50%. Let us help you know how you can acquire a used car loan Singapore with easy steps.
Criteria Of Second-Hand Car Loan
There are a lot of financial institutions that provide loans for second-hand automobiles. Second-hand vehicles are more preferred over first-hand cars. This is because an individual has to pay a lower amount to buy a great car. To acquire a loan for a second-hand vehicle, an individual has to be 21 and above. He has to be a citizen of the country. If not, then he is required to provide additional documents as a foreigner. The rate of interest depends on the amount you are borrowing. But it is always seen that a used car’s interest rate is usually high compared to the interest rate of a new car. This is because a second-hand car doesn’t have a quality guarantee.
The interest rate offered by banks on used cars varies between 2.78% – 2.98%. Other banks in Singapore also charge 4% – 5% on used vehicles. The percentage increases with the amount and criteria of the old car. If you plan to acquire a loan from a bank, you have to wait for a long time to complete the procedure. If you decide to take the loan from a car dealer, the car dealer agency will take 2-3 days of time to provide you with a loan. This is because the car agency charges a higher rate of interest compared to any other financial institution.
The process of acquiring a second-hand vehicle loan involves a lot of documentation work. Second-hand automobiles come with a lot of documents. To obtain one, you have to go through a lot of paperwork and fulfillments. If you fail to provide a single document, the financial institution will cancel your loan’s request. This is due to the restrictions imposed on the financial institutions by their higher authority. Capitall SG is another excellent option where you can avail of various loan packages to buy your dream car. Buying a dream car is not easy, but if you find a great financial institution and the right quality car, then nobody can stop you from achieving your dream.
Advantage Of Buying A Second-Hand Car
- SAVES MONEY: Buying a second-hand automobile saves a lot of money. You can almost get the right condition car in half of the price. The automobiles of today’s generation last very long. The excellent life span is due to the quality of material used during manufacturing automobiles. There is a massive difference between the quality of today’s time automobiles and the previous generations. The cars of the 60s and 70s never lasted so long compared to today’s time.
If you have vast knowledge about cars, you can easily buy an excellent conditioned second-hand car in a lump-sum amount. By doing this, you will save a lot of money within no time. Buying a second hand right conditioned car is always better than buying a first-hand car.
- NO RISK OF DEPRECIATION:Purchase a second-hand car to avoid the fear of depreciation. The fear of devaluation rises when you buy a new car. The second-hand vehicle is already depreciated, so if you buy a good quality second-hand car, there will be no fear of depreciation in the car’s value. This means no deduction in the cost of an automobile. This usually happens with time. The more you use the vehicle, the more the value is depreciated. When you buy a second-hand car, the cost of it will already be depreciated. Thus there are lower chances of losing more amount of it.
- REDUCES INSURANCE COST:The cost of insurance is based entirely on the total value of an automobile. Purchasing a second-hand car can help you reduce the insurance amount on it. By purchasing of $40,000 car for $20000, you have to pay the insurance amount only at $20,000. This, in turn, helps in saving a lot of money.
- OPPORTUNITY TO BUY MORE: Instead of purchasing one new car, you can buy two old cars in the same amount. Purchasing a second-hand vehicle gives you the opportunity of buying a few more vehicles in equal value. In the amount of one car, you can buy 2 – 3 good conditioned vehicles which will give you more benefits. A new car will run for a thousand kilometers. When you purchase two old cars, they will run for 2,000 kilometers at the same time. This is one of the most significant benefits of buying a second-hand car. Besides, you can also flaunt too many cars in front of your peer group.
- LESS TENSION:Buying a second-hand cut can give you more peace than buying the first-hand car. This is because, in a first-hand vehicle, you have to pay a considerable amount of loans. The pressure of paying the amount will be very high during the tenure of the loan. Whereas when you purchase a second-hand car, your stress to pay the loan will be 50% less. This is because you don’t have to pay a considerable amount as a loan to buy the car. You only have to pay a lump sum amount and get your vehicle.
- LESS TIME:Clearing a first-hand car loan can take you years and years of time. This not only increases the burden but takes a very long time. In a long tenure of the loan, what is the guarantee that you will have a stable income for a more extended period of time? Thus buying a second-hand car on loan is more feasible. This is because the loan amount is less and is cleared within a limited period of time. This causes no stress of repayment of loans for a longer tenure of time.