Can Used Cars Be Financed Through Bank Loans?
1 Answers
Used cars can be financed through bank loans, but the conditions are very stringent. Whether a vehicle can be mortgaged for a loan mainly depends on whether the assessed value of the vehicle is worth mortgaging. The depreciation rate of used cars is faster than the repayment rate, leading to high credit risk, which is why the loan conditions for used cars are very strict. Below are the loan conditions for used cars: Generally, the borrower must provide proof of intent to purchase the vehicle, a vehicle evaluation report, the seller's vehicle ownership certificate, the annual inspection certificate of the motor vehicle, and the loan amount must not exceed 50% of the total price of the vehicle. Some banks even require that applying for a used car mortgage loan must be secured with real estate; otherwise, even if all five conditions are met, the loan will not be approved.