Do lenders charge for used car valuation before disbursement?

Lenders usually check the car themselves before giving a used car loan, and this check often comes with a small fee. It’s a routine part of the process because they need to confirm the car’s actual condition and value.

Here’s how it generally works:

• Someone from the lender or an approved agency visits the car, notes the model year, kilometers, chassis number and takes a few photos. It usually gets done in ten or fifteen minutes.
• Many lenders charge a valuation fee to cover this visit. Some include it in the processing charges, while others list it separately. It’s better to ask upfront so you know what to expect.
• If you’re buying from a private seller, the valuation may take a little longer, especially if the car has an old loan on it. Dealers usually have this part streamlined.
• A quick call or message to the lender clears things up. Most people check this before paying any booking amount to the seller.

It’s a small step, but knowing the fee and timing keeps the loan process moving without surprises.