Basics about Financing and Insurance for Used Car

Finance and insurance are the two most essential elements of the Indian car sector. As of the present day, many buyers are finding the used car market highly lucrative, and the same applies for the financing and insurance of the used cars. It is mandatory to get all the cars running on the Indian roads insured and in the context of financing, it is found that above 90% of the buyers go for second party financing to lower the car buying burden. Hence, when the question arises in the context of buying a car, financing followed by insurance is all that comes into concern.

What Does The Car Insurance Policy Look For?

Say you are going for a used Hyundai i20 car. The car insurance policy will involve the used Hyundai i20 India features. This involves the make, type of the engine used, cubic capacity and the estimated cost and the engine power. One advantage of buying a used car that is pre-insured is that the insurance premium is reduced to a great extent. As of the present scenario in the used car market, dealers such as Hyundai, Toyota, Honda, and Mahindra have significant links with various big banner insurance firms and agents. They hence promise to offer their clients with a stress-free insurance policy.

Car Financing and More

Moving ahead with used car financing, as said above, financing availed from the second party, reduces the financial hassle of the buyer to a considerable extent. Essential components include the used car’s prevailing market value, breakdown coverage, warranty and its age. Taking into concern all these credentials, the finance dealer will offer around 80 to 85% of the market value of the used car. This means the remaining amount has to be paid by you.

Benefits of Availing Second Party Financing Assistance for Your Car

One benefit that you enjoy availing financial assistance for your used car is repayment facility in parts. This is known as EMI or Easy Monthly Installments. Though it is one of the best ways you have on hand to finance your dream car, before availing the same, you need to keep into concern your monthly income. Make sure to calculate your recurring expenses, your saving amount as well as the EMI well before, so as to avoid any problem on a later date. Also, ensure to go through all the financial options offered by the company you chose. Compare their rates with other lenders in the market to ensure you are making steps towards the right path. Last but not the least, do check the agreement twice before signing.

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