The interest rates for used car loans
can range from 9.05 per cent to as high as 20 per cent. So, comparison of rates becomes important. Barring a few exceptions, where they are the same, loan rates for used cars are usually higher than for new cars in the case of most lenders.
The processing fee ranges from 0.25 per cent to 2 per cent, though in case of many lenders, there are also certain monetary ceilings, say, Rs 5,000 or Rs 10,000. Before deciding on a lender, find out what portion of the cost of the used car it will finance.
Margin money, or the amount you will have to pay out of your own pocket, can range from 20-40 per cent of the car value or insured declared value (IDV)
The loan tenure, which will have a bearing on your EMI, can range from three to five years.