How Car Loan Helps In Financial Planning

1. How Car Loan Helps In Financial Planning? More buyers are looking for loans for used car, as many are facing cash flow problems due to the pandemic. We all are dealing with economic uncertainty. Still buyers want a car, they have a restricted budget. That’s why many are getting for a used car. There is also a demand from those who had a car in the family but travel through public transport. Now due to a strict working schedule and busy life, each working family member wants a separate vehicle. Generally, lenders lend up to 70%-90% of the used car's valuation arrived at through their valuation process or based on the insured's declared value (IDV). As such valuation can be remarkably lower than the purchase price of the car, your contribution towards the purchase price can be quite substantial. Going for car loans finance or a personal loan depends not on your car's valuation and you can fund the entire amount through it, as long as your loan worthiness allows you to do so. While credit score plays a crucial part in the approval process of a personal loan since it is an unsecured loan, lenders usually do not give much value to credit scores while processing used car loans. Thus, borrowers having bad credit scores may find it easier to go for loans for used car.

2. The approval and disbursal of personal loans are much quicker than used car loans. While personal loans are generally dispersed within 2-5 days of loan application, lenders take at least 1 week to disburse used car loans. The loan processing can be peculiarly clumsy if the pre-owned car is bought from an unorganized player. Resource Link: https://businessloansinaustralia.blogspot.com/2020/12/how-car- loan-helps-in-financial-planning.html