In India, sales of new cars have remained sluggish but the demand for used vehicles has seen a steady rise. According to industry analysts, almost 45% of the potential car buyers are less than 30 years old. They often want to upgrade from a motorcycle to a four-wheeler and are the primary target customers of pre-owned car vendors.
The new car buyers of leading automobile company Hyundai include a significant number of individuals who have driven a used vehicle of this brand in the past.
Companies offer attractive deals and free offers for further growing their sales. In addition, most of these vendors provide after-sales services to the customers. The pre-owned vehicle segment is 1.3 times bigger than the new car segment.
However, the second-hand car segment is still unorganized and a large part of the sales occur through friends and relatives. The organized segment comprises only 18% of the total market size, which offers a great opportunity to new players to grow their business.
In addition to the affordability of second-hand cars, the easy availability of used car financehas driven the growth of this segment. Leading banks and non-banking financial companies (NBFCs) provide quick and simple loans to enable buyers to drive home their cars without any constraints. Here are three features of these loans
- Longer tenure
Just like new car loans, finance for pre-owned vehicles is now available for extended tenures. Borrowers may repay the loan amount for tenures up to 84 months. This ensures individuals are able to service the loan without any financial difficulties.
- Competitive interest rates
Financial institutions offer attractiveused car loan interest rates. This reduces the Equated Monthly Installment (EMI) and ensures borrowers are able to afford a pre-owned vehicle.
- Simple procedure
Lenders require minimal documentation to approve the loan application. The entire procedure from application to disbursement is completed within a short period of time.
Purchasing a second-hand car is an affordable option. The increasing number of certified dealers and automobile companies offering pre-owned cars makes it easier to own one. Buyers are advised to conduct extensive research on different brands and models. Furthermore, checking online resources to compare features and prices offered by different vendors is recommended. Individuals must also research about various lenders offeringused car loans to make a well-informed decision.
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