New Delhi, June 2 -- With the help of car loans for pre-owned cars, most working professionals today can afford four-wheelers for their families. They may be suitable for those who do not wish to liquidate their funds to cover the upfront costs of a new vehicle. They are also useful financial tools for working professionals planning to buy their first car on a tight budget. However, certain smart financing strategies should be kept in mind. These strategies will help borrowers obtain better value from a used car loan.

Today, there are several banks and non-banking financial companies (NBFCs) offering second-hand car loans. Each of these has a unique value proposition. Some may offer a lower rate of interest, while others may offer a high...