Tip to Remember Before Taking Second Hand Car loan

Choosing the right second-hand car for yourself can be quite a struggle if you don’t know where to start. Buying a second-hand car is indeed a smart financial move, but an impulsive buy could result in a huge loss. Even though one may need to change batteries, tires, and other worn-out parts, it is a great start for rookie drivers, and also requires less capital investment.  

Here are five things you must keep in mind before you make your purchase!

1.    Sort out your finances

It is always wise to have an idea about your budget. This way you can avoid overshooting your finances and make the best choice for yourself. If you are taking a loan for the used car, it is important you go through the terms and conditions involved.  Keep in mind other tertiary costs, such as insurance and interest on used car loans, while deciding on your funds.

2.    Choosing the right car

Once you have your budget fixed, finding the right car becomes easier. You can look for second-hand cars on the internet, according to your required specifications, or you could visit showrooms selling the same.  It is a great call to look for used cars which are comparatively newer- it allows you to cut down on insurance coverage costs. Additionally, more modern cars last longer! 

3.    Inspect thoroughly

You can do a basic overview of the engine and the frame, but you must get the vehicle inspected by a professional mechanic for the best results. The seller may insist that the car is in good condition, but it is always a good idea to verify and use your loan for a used car judiciously. If the car looks good to you, insist on a test drive to make sure that it runs well too! 

4.    Ensure the paperwork

This is the most crucial step of all any mistake in paperwork could lead to possible legal complications in the future. Ensure that ownership is successfully transferred to you, along with the necessary papers. Besides this, keep a check on all the required documents involved in issuing used car loans. 

Before you hit the road with your new car, make sure to get it thoroughly cleaned up. Change the fluids and make quick fixes, if needed. If you have used a car loan for the purchase, make sure you repay the loan amount in the specified period, as the loan itself is secured against the car.  


If you are looking for a loan for your two-wheeler? So now apply for a two wheeler loan from Muthoot FinCorp and bring home your dream bike. Muthoot FinCorp’s flexible EMI repayment and tenure options make the loan repayment a breeze, just like riding your bike.

16 thoughts on “Tip to Remember Before Taking Second Hand Car loan

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