Thinking of buying a used car? Check the lowest interest rates & nbsp | & nbspPhoto: & nbspTwitter
The demand for personal mobility has risen as more people try to avoid crowded public transport in the aftermath of the pandemic. Buying a car is no longer a luxury with easy access to loans, many ownership models and price comparison websites that make finding and borrowing a car easier.
Buying a new car is often costly, and many say that choosing a used car makes more sense because a four-seater is a depreciable asset that diminishes in value over time. A well-maintained used car can be the ideal solution to ensure the mobility of an individual or a family at a minimum cost. You will also save on other expenses like registration fees, road tax, RTO fees, etc., which are already paid by the first owner.
However, it cannot be said that interest rates on used cars are much higher than on new car loans. In the case of some lenders, this difference can sometimes be as high as 5%.
Axis Bank is offering a new car loan ranging from 9.05% to 11.30%, while interest rates on a used car loan range from 14.80% to 16.80%; HDFC offers loans for new cars at 9.50-10.25% and old car loans at 13.75-16%; ICICI’s interest rate on new car loans ranges from 9.30% to 12.85% and 14.25% on old car loans, with United Bank of India offering the lowest rates.
However, public sector banks offer lower rates than private banks. Among state-owned banks, the lowest rates are offered by Canara Bank, Bank of India and Union Bank. According to Paisabazaar.com, the interest rate for Canara Bank on used car loans is 7.3% -9.9%, and Bank of India offers these loans at 7.35-8.55% and Union Bank is 8 , 9-10.5%.