If you want to get the perfect used car loan that fits your budget, it is foolhardy to just sign-up when you have not determined all of your available options. Before doing so, you might to consider first the figures that you will be working with.

Once you have determined the model of the car that you want, where you will be getting the loan from, and your monthly allowance for the used car loan payment, you may proceed with signing up. Then you will be on your way to owning the vehicle that you want. There are a lot of web sites online which offer auto loan rate calculators.

There are numerous cars in india available on second hand basis. These rates vary by state and city. There are also online lenders for cars in india who offer a cheaper rate, as compared to getting car loans via banks who - more often than not - deny your loan application, especially for used vehicles. Research online and visit the used car dealers in your area. Collect the price quotes first to determine the current rates for the used cars available in the market. You can also ask around for the rates. You are bound to get more results by word of mouth, especially if you know car enthusiasts.

Take the following as an example of the current used car rates: In India, three lenders who offer used car loans are the Any Nationalised Bank, ICICI Finance and Mahindra First Choice. For a used car loan, the Any Nationalised Bank offers 20% down payment and an 10.5% rate. You would add to this a Rs.2500/- fee and a .25% discount with auto debit. Remember the rates are subject to change as per company and RBI norms. So take rates mentioned in the article for directional view. Check the rates with the various bank before closing deal.

The second lender, which is Capital One Auto Finance, offers a 6.25 % rate and a 20% down payment. There are no application fees and prepayment penalties.

Mahindra First Choice offers an 9% rate and a 20% down, a Rs.500 application fee and a .25% discount with auto debit. Remember the rates are subject to change as per company and RBI norms. So take rates mentioned in the article for directional view. Check the rates with the various bank before closing deal.

At the end of the day, just compare these three rates and determine which offer would fit your budget.

Also consider the distance, mileage and the final asking price.

One more thing that you should consider when comparing rates in used car loan is the number of months for you to make the payments.

There are several options. Some lenders offer a 36 month used car loan. For higher asking prices, longer payment terms are available.

For a 36-month used car loan, for example, the rate offered is 10.5% to 12.5% depending on the loan company. This rate increases as the number of months increase.
After researching and looking through all of your options, choose the lowest rate that you can get and remember not to overspend when you have already reached a certain target budget.