When someone decided to going for second hand car. On other hand you don’t have enough money to buy a car. Then always take wise decision. If you are going for Car loan, then you have to pay higher interest on second hand car. Only 60 -70 percent loan amount sanctioned by banks.
Banks on interest rates and loan amount on used cars –
Generally, it is 5-7% higher than a loan taken for a new car. For instance, SBI charges 11.25 -11.75 percent for new cars, but for used cars, the rate of interest is 17.25-17.75 percent. It means you have to pay higher interest on second hand cars.
For a New Car, Banks sanctioned almost 80-90 percent of the car on road price. Some banks sanctioned 100 percent (Conditions apply). But for second hand cars banks only sanctioned 60-70 percent of loan amount.
Tenure for used cars and new cars –
Car loan banks provide tenure of only 3 to 5 years for used cars. For New cars tenure period is available upto 7 years. In Second hand cars case, Its totally depends on lenders banking policy, like condition of cars, cars model etc.