Many luxury car brands offer certified pre-owned (CPO) cars in India for sale. Owning a luxury brand symbolises prestige in India, and therefore it is many people’s dream. However, luxury cars imported in India slap a hefty import duty payable by the buyer.
By the financial year 2025, organised platforms are expected to contribute about 45% to India’s total pre-owned car market. This signals that the demand for used cars is strong, mainly from India’s Tier 2, Tier 3 cities and rural markets.
Important brands like Mercedes Benz, Jaguar, Landrover, Audi, and BMW market their CPO luxury cars in India. And quite frankly, they offer strong values to many: The warranty period on most used luxury cars is two years—a year short of the typical three years of a new car’s warranty.
Are you planning to buy a CPO luxury car? Then, you can take a used car loan to finance the purchase of the car of your dreams.
10 Tips for Buying Pre-Owned Luxury Cars in India that You Cannot Miss
Some of the essential tips while purchasing a pre-owned luxury car in India are as follows:
- Check all the car receipts–including registration, insurance, tax and service records, are adequately maintained.
- Luxury cars have several intricate parts, including sensors, intricate wires and controllers. Therefore, careful pre-purchase inspection by a trained professional is a must.
- The central command interface integrated with the central console must be thoroughly inspected and ensure that all Bluetooth connections work fine.
- The battery is the key part of any car, and a poorly performing battery will result in impaired functions. You certainly don’t want flickering lights or other malfunctioning features in your dream car.
- Check the car for any defects on the surface, especially body dents, underbody corrosion and paint quality, among others.
- Thoroughly check the exhaust pipe, exhaust sound, air filters and engine sound.
- Check the condition of the tires, their authenticity and wheel alignment.
- Make sure that the car you are buying is certified. Many luxury brands have their pre-owned car web portals.
- Even though the capital cost of a pre-owned luxury car is not so high, the maintenance parts for the luxury car will be high because of the superior quality. Therefore, the depreciation rates on these cars will also be correspondingly high.
- Checking the car’s history and taking it for a test drive is an absolute must.
Attractive Financing Options You Can Avail for Buying Pre-Owned Luxury Cars
Many financiers offer attractive financing options if you wish to purchase a pre-owned luxury car. Here are some instances:
- You can get up to 95% of the cost of the car as upfront used car loan financing.
- Moreover, car financiers provide funding maximum up to Rs. 50 Lakhs which makes it easy to purchase a luxury of a premium brand.
- Flexible repayment options are available with used car loans. For example, you can take a used car loan on a fixed EMI (Equated Monthly Instalment) or flexible payments where the EMIs are structured according to your convenience.
- Used car loan interest rates start at 15% p.a., which is very competitive. However, used car loan interest rates may vary from borrower to borrower depending on the buyers’ eligibility, income, the type of used car being purchased, the loan tenor etc.
- A used car loan EMI calculator could come incredibly handy: If you input the loan amount, the interest rate payable, and the loan period, the EMI payable is automatically calculated. All other charges are disclosed upfront. So, you need not be worried about hidden charges.
Used Car Loan Eligibility Criteria and Documentation Required
Following are some criteria that you must substantiate via documents to avail of used car loans:
- You must ideally be between 21 to 60 years of age.
- Your monthly income range must be anywhere above Rs. 20,000 and Rs. 2, 00,000 p.a.
- The income ranges are prescribed for employed or businesspeople.
- You should either have an employment history of one year or have three years of stable business if you are a businessperson.
- In addition, you should provide ID proof, address proof, salary statements and bank statements that corroborate your repayment capability.
Now you can pursue your dream of owning a pre-owned luxury car with these tips. Look at used car financing options that offer quick approvals, easy financing options, flexible repayment schedules and interest rates that fit your pocket.