Used car loan is a type of secured loan. As the name suggests, you can buy a second hand or used car by taking this loan. Be it a brand new car or a second hand car, buying it can be fairly expensive. But there are many benefits attached to buying a used or second hand car. You can buy a luxurious expensive car in almost half of its price if you buy it second hand as you just have to pay its current on-road price. You also get better deals on Second hand car loans and can bargain with the car seller.

Many banks and NBFCs in India offer used car loan to its customers. But before you embark on the path of taking a loan, we suggest you to go through these 5 things first.