Buying a car is a major investment that involves a number of factors. The financial aspect of this investment plays a big role in deciding what car you own. And while most people finance their new car purchases with a loan, this is not always the case when buying a used car.
As used cars are more affordable, they are often bought with cash rather than with a used car loan. But did you know a used car loan is a much better financial decision? Spinny Capital is an easy and simplified used car financing solution that helps you buy the car you desire while solving the problems you face when financing a used car.
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What is Spinny Capital?
Financing a used car is often viewed as a daunting process that many buyers prefer to avoid. Spinny Capital aims to simplify this process to make used car financing accessible to every car buyer. Financing with Spinny Capital is about building a long-lasting relationship that places your needs first. This is why our service is tailored to offer you a used car loan that suits your requirements and helps you own the car you love on your terms.
Benefits of Spinny Capital
- Best interest rates, without the shopping: Partnerships with leading financial institutions allows us to provide the best interest rates suited for your needs / credit profile
- Instant processing: We ensure your application is processed and approved within 24 hours
- Low processing fees: Our partnerships with leading financial institutions minimizes processing fees. We pass these savings to you!
- Tailor-made EMI for you: Choose the tenure and EMI you are comfortable with, from a range of leading finance partners. Minimize the cost to you while maximizing your Car Joy
Why finance a used car with Spinny Capital
Used cars are affordable but purchasing a car directly with cash restricts your options to what you can afford. A used car loan through Spinny Capital expands your choice and gives you the freedom to own the car you desire. With a used car loan, you can bring home a premium hatchback or sedan at the price of buying an entry-level hatchback. You could buy a 2014 Maruti Suzuki Swift for ₹3.5 lakh or finance ₹3.5 lakh for a larger, more premium 2016 Maruti Suzuki Baleno valued at ₹5.05 lakh. Spinny Capital helps you fulfill your aspirations while reducing your costs.
The Better Financial Choice
Used car loans are often avoided due to their high interest rates. Most people believe high interest rates have high EMIs attached to them. However, financing your used car purchase lets you save your funds for a different need, while giving you the freedom to drive the car you desire today.
One way you can utilize your savings is to invest it in financial instruments like mutual funds, Gold, or ELSS. The higher return on investment ensures your money works for you while you enjoy driving your car.
SAVE | INVEST | DRIVE
Here’s a breakdown of what you could earn if you take a used car loan and invest your savings:
| Investment Options | ELSS | Gold | Fixed Deposit | Used Car Loan |
|---|---|---|---|---|
| Principal | ₹3.50 lakh | ₹3.50 lakh | ₹3.50 lakh | ₹3.50 lakh |
| Tenure | 36 months | 36 months | 36 months | 36 months |
| Return / Interest | 12.5% | 10% | 6.50% | 13% |
| Total Earned / Total Paid | ₹4.81 lakh | ₹4.55 lakh | ₹4.18 lakh | ₹4.24 lakh |
| Interest Earned / Paid | ₹1.31 lakh | ₹1.05 lakh | ₹68,250 | ₹74,543 |
| Profit (Compared to Used Car Loan Interest) | ₹56706 | ₹30456 | ₹6293 |
Taking a used car loan of ₹3.50 lakh and investing the same amount in an ELSS scheme at the same time can net you a profit of up to ₹56,706 after 3 years. In other words, you didn’t lose any money by buying the car of your dreams and you made your money work for you. Investing in Gold financial instruments is another way to earn a net profit after 3 years. However, investing in a fixed deposit will have limited benefit for the 3 year period but does provide value for a longer term investment.
Another important factor to note is that Spinny used car loans are on a reducing rate of interest and not on flat rate of interest. In this case, interest is paid only on outstanding principal rather than the principal amount.
