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Different Ways Of Financing A Pre-Owned Car

In India, buying a new car is considered to be a huge step even while buying a pre-owned car with discounted rates and why not considering that rupees 1 lakh or more is a huge sum of money for many. To ensure that you do not put yourself in debt and to practice smart spending, one must carefully scan through all options of financing and choose what they feel is correct. There are different ways of financing a certified used Maruti Suzuki Swift Dzire in Bangalore and a number of schemes (or sale strategies), like cash back, that makes buying a used car more affordable.

Used Car Loan

Different banks will have different terms to their loans on used cars. Some examples of features are flexible repayment tenure where you choose the tenure of the loan be it 6 months, 12 months or 60 months, a good rate of interest and even a loan of 100% of the price paid. However, one must ensure that they never take a loan beyond their means as that could do more harm than good. Trying to pay off the loan may put the buyer into debt that is even more of a risk than they can afford after taking such a big step like buying a new car.

Equated Monthly Installments (EMI)

EMI is a method through which the loan is paid of in installment on a date agreed upon, every month. This is done till the loan is paid off with the interest included in this as well. One must keep in mind their ability to pay the EMI every month and then come up with a suitable tenure and amount to be paid.

Cash Payment

Full cash payment is the best option, as it does not involve any sort of interest rate or repayment. Down payment, which is the cash given upfront, is done, after which the rest of the amount is paid later in installments.

Sale Strategies

Banks employ a number of sales strategies to promote bank usage. These strategies involve cash back and festival based offers.