Based on a recent Economic Times report, automakers are set to hike car prices in 2025 owing to increasing input costs and operational expenses. If you are on a budget, you may think the news means your dream of owning a car is shattered. Let us assure you that not all is lost—you can buy a used car that is typically more affordable. Do you know what else can save you from financial strain? Opting for a used car loan!
Most people are concerned about interest rates being too high. However, you can secure the lowest used car loan interest rates in many ways, ensuring the EMI payments easily fit into your monthly budget. Seven customers of pre-owned car loans revealed their secrets on used car loan rates. Read their valuable tips to grab your used car loan at the best deals.
“Regularly monitor your credit score and keep it high.”: Rama (45 yo)
Rama emphasized the correlation between credit score and used car loan interest rate. She said, “When I realized the credit score is one of the most important aspects of my loan application, I started regularly monitoring it and took steps to keep it high. When I filled out the form, my CIBIL score was above 750, which helped the lenders trust my credit habits. Ultimately, they offered me the pre-owned car loan at an extremely low interest rate.”
While your credit report does not affect your used car loan eligibility, it does impact the interest rates. Why? Because it indicates your ability to clear your dues promptly. Lenders evaluate every application on a case-by-case basis. If your credit score is below 650, you can still secure a used car loan but may have to bear high interest rates. On the other hand, a high credit score sure-shot guarantees low interest rates.
Diversifying your credit products, paying EMIs and credit card bills on time, limiting your credit applications, and resolving credit report inaccuracies are popular ways to improve your credit score.
“Compare loan companies to find the right one.”: Soham (30 yo)
Research is primary when finding a lending partner that fits your budget. Soham shared, “I spent days scouring the Internet for lenders before I finally chose Manba Finance. When comparing loan companies to find the right one, you must first analyse the interest rates. Moreover, check additional fees, loan T&C, and features before taking the final call.”
Loan company websites provide information about old car loan interest rates and other topics. If the information is not displayed, contact their customer care.
“Make a larger down payment.”: Maya (35 yo)
Down payment refers to your initial upfront fees when getting a pre-owned car loan. The higher your down payment, the lower the interest rates and vice versa. Maya revealed, “Manba Finance, my lending partner, significantly reduced my used car loan interest rate when I decided to make a larger down payment. The lower loan amount and interest rates made the EMI repayment more affordable.”
“Go for a shorter loan tenure.”: Pranav (55 yo)
Logically, a longer loan repayment period leads to lower monthly EMIs. However, this also means you will end up paying more interest overall. What’s the solution? Pranav mentioned, “Choosing a shorter loan tenure helps you pay less interest in the long run.” That said, it may be challenging for everyone to manage higher EMIs considering income. So, don’t feel dejected if you cannot apply this tip—there are plenty more ways to secure lower used car loan rates.
“Choose the right timing.”: Alok (28 yo)
Is there a perfect time to apply for a loan to ensure the lowest old car loan interest rate? The short answer is yes! Alok’s tip is extremely valuable: “If you get the timing right, you can borrow loans at attractive interest rates. Usually, lenders tend to lower their interest rates during the end of the month, quarter, or year as they are under pressure to meet their company targets. You can also check for promotional offers during festive seasons or economic downturns.”
“Build a positive relationship with your lender.”: Hriday (38 yo)
Your job does not stop at simply finding the right lender for your financial needs. It’s the beginning of a new relationship, so you must nurture it through transparent communication and mutual respect. At this point, you may be wondering how a thriving financial partnership can help you lower old car loan interest rates. Well, Hriday rightly notes, “When you build a positive relationship with your lender, it puts you in a better position to negotiate the loan terms. Since I had a long-standing association with Manba Finance and they knew of my responsible financial behaviour, I could request lower interest rates when applying for used car finance.”
“Get a pre-approved loan”: Tara (45 yo)
A pre-approved loan is when the lender makes a special loan offer based on your credit history, financial behaviours, and other relevant factors before you formally apply for it. Your pre-approved used car loan eligibility improves if you have an existing relationship with the lender, employment and income stability, and a high credit score. Highlighting the benefits of pre-approved loans, Tara said, “Getting a pre-approved loan promises better loan terms, especially lower used car loan rates. In addition, higher loan amounts, quick approvals, and better negotiation powers are some of the many more perks.”
Secure the lowest used car loan interest rates!
Now that you know how to get a low-interest loan, it’s time to apply the tips and fast-forward your dream of owning a car. Manba Finance is one of the best lending companies offering used-car loans through a seamless online application process. You can apply for used car finance right now, but if you have any queries, contact us first!
