How to get finance to buy a used car?

A lot of homework has to be done before you decide to buy a car, be it a new one or a used car. Arranging for the finance to buy a used car is one of the most important tasks which needs to planned carefully. While arranging for finance of the used vehicle you have two options – you can arrange for loans directly from the banks or else you can apply for a dealer loan as well. But to available any of these options you will have to ensure another point – you should be aware of the condition and the price of the vehicle. For this you need a detailed valuation of the car which is carried out on a number of parameters.

The first and the foremost factor which comes up during valuation of the car is the price of the car when it was newly purchased. The condition of the car plays a very important role in deciding the price. Various car functions like the AC functions, the central-locking system, the power windows, Lights, indicators, steering, door-locks, and the braking abilities are thoroughly checked. The noise of the engine also an important as it generally tells us a lot about the health of the engine. The speed lag, the suspension, the underneath and the cornering are the drive-abilities which have an impact on the price.

Age of the car is a very important aspect which decides the resale value. With increasing age the resale value of the car undergoes depreciation. Day after day the automobile companies are coming up with new models. So the older the car becomes, the more outdated becomes the model. Like age, the number of previous owners that a car has also influences the price of a second hand car. It is inversely proportional which means the increase in the number of previous owners decreases the price of the used car.

The usage, the distance travelled by the car or in other word the number of kilometres the car has travelled and the condition of the car. With increasing age and increase in the number of previous owners, the increase in the usage and the distance travelled is quite natural. And so the price decreases.

The manufacturer company plays an important role to determine the value of a used car. There are certain companies for whom their cars fetch a higher resale value than the others. Then there is the car segment which also plays a major role. Higher the segment lesser will be the resale value.

Various other factors like the insurance details, the banking details for any outstanding loans, the pollution checks, the chassis number registration details and the ownership details, the maintenance logbook details impact the price factor of a used car.

After the valuation has been carried out, the price of the car is fixed. After getting this all done you can approach the banks or the dealers and ask them to provide you with their quotations and terms and conditions of the loan. After detailed study of all the conditions you can zero in on the best offer in hand to finance the used car which you will buy.