The first car is often a cherished experience in the life of all young professionals; even if it is a second-hand car, it is a step towards adulthood, independence, and the exciting times in the future that comes with it. It’s no wonder why we all have such fond memories of our first cars, but the same can’t be said about the loans available to finance this dream.
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This experience often comes with extensive paperwork, processes, and requests that eat into the magical moment, making it more of a hassle than a dream come true. Of course, all this is before the high-interest rates and the myriad of other hidden fees that come wrapped with the bundle.
With the increasing penetration of new-age fintech companies such as EarlySalary, the experience of taking a loan to buy a second-hand car is getting a facelift. Early Salary has made it possible for the applicants to get instant approval on car loans. It is starting to resemble the promised land for young adults and middle-class families. The process of applying for a loan to fund your second-hand car is now incredibly easy, with a transparent and convenient system that is increasingly hassle-free.
Second-Hand Car Loans – How Do They Differ?
A key difference between new cars and used car loans is that second-hand car loans often carry higher interest rates and a lower loan-to-value ratio to factor in the uncertainties involved with the asset. However, second-hand cars still offer plenty of value and are often a perfect stepping-stone for financial and professional life.
While loans can be availed for tenures of up to five years, they are often subjected to sanctions based on the car’s health, performance, and condition. As a result, banks and financial institutions are unlikely to make a risky bet on decade-old cars. However, they may be willing to bet on the applicant based on the credit history, salary, and other relevant details.
With newer entrants in this niche, with renewed offerings and better terms, second-hand cars are being deemed as increasingly valuable propositions, which explains the rising demand for them and increasing values in secondary markets for automobiles across the country. Eventually, the financial offerings for this niche should be on-par with new cars.
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EarlySalary Personal Loan for Used Cars
The seamless financing and instant approval car loan offerings of EarlySalary extend well into the used-auto niche. Having already served 2.4 million customers and over INR 5,000 crores dispersed across the country, the app-based lender looks poised to disrupt the used-car financing market.
With a digitized, seamless, and hassle-free approval process, EarlySalary successfully takes on established banks and NBFCs in their turf. This also comes with favourable terms, economic interest rates, no opportunistic fees, and hidden charges. If you are a salaried professional with no credit history, this is by far the most attractive service.
As a young professional, you no longer have to wait years to build a suitable credit history. You can now borrow and fulfil your dreams with nothing more than a stable salary.
Final Verdict
A used car is more than just a means of transportation and convenience. It signals arrival, potential, and the future for a young professional. Such an endeavour shouldn’t become a financial jolt that will haunt them for years.
Whether it is instant approval auto loans or an urgent personal loan, borrowers should be aware of the responsibilities that come with them and their consequences on their financial future if they fail to treat these sources with respect.
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