However, the borrowed funds number getting used car financing is normally below the newest car loans. This is because the fresh new selling property value a great used-car was generally below regarding a unique auto, and loan providers usually are far more cautious with credit large amounts for made use of cars. The mortgage amount having used-car finance can vary off 70% to 90% of your own automobile’s worthy of, according to the financial plus the particular vehicle becoming funded.
The fresh car and truck loans could only be used to finance the acquisition of brand new cars. On the other hand, used-car funds can be used to loans the acquisition out of one another put and you can second-give vehicles. But not, really lenders from inside the India keeps limits towards the age the brand new auto that can be financed due to a car or truck financing. Essentially, lenders will get money automobiles that are to a decade old, based on their condition and you may resale value. (more…)