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Millennials are making a beeline for used cars to fuel their passion

Mar 09, 2018

The millennial population in India comprising of those born in the 1980s and 1990s is a revelation to marketers as they form a formidable market for a variety of products and services. In order to cater to this market, marketers would do well to understand the psyche of this group of people.

Several studies indicate that characteristics of the Indian millennial population include

  • Unaware of manual operations as computerization had taken firm root in the country
  • Learning about the outside world through the power of the Internet
  • Grew up with modern means of transportation – high tech two-wheelers, four-wheelers, buses and metros and taxis
  • Evolved with the penetration of Smartphone revolution
  • Becoming tech savvy and spreading the benefits of technology to their families and influential circles

Born and brought up when India was adopting new technologies, the millennial population is a group in a hurry to bring in a revolution. As per a report (http://gulfnews.com/gn-focus/country-guides/reports/india/7-things-you-need-to-know-about-india-s-millennials-1.1565524), Indian millennial population is

  • Likely to exceed 700 million by the year 2022
  • Rooted in tradition
  • Ambitious
  • Talented and purpose driven
  • Gender insensitive
  • Tech-savvy
  • Self-motivated

Besides, the millennial population is not averse to trying new concepts and this is more pronounced in the way this group of people approach personal transportation.

They are perfectly attuned to buying used cars as they find that modern cars are technologically superior without too much of maintenance issues. Thus, the used car market gets a fillip from the millennial population who are aspiring to own cars. What the millennial group sees in used cars include

  • Range of cars – hatchbacks, sedans, MUVs, SUVs
  • Choice of technology
  • Choice of style options including funky colours and dynamic shapes
  • Choice of fuel – electric, CNG, petrol, diesel and hybrid

The used car market allows the millennial population to indulge in their passion for trying out new things.

Pandering to the requirements of the millennial population, various stakeholders in the industry such as the automakers, used car dealers and BFSI companies offer products and services that the millennial population lap up with glee.

While auto makers have developed a robust used car market in the form of pre-owned cars, financial institutions including NBFCs such as Tata Capital have energized the used car market by offering used car loans to the aspiring millennial population with attractive offers in terms of interest rate, tenure, affordable repayment options and amount of loan. They provide seamless processes by linking up with used car or pre-owned car dealers that can ensure the borrower gets a used car within a short time with minimal procedural formalities. Since the millennial population is tech savvy, they use technology to assist them in reaching out to prospects through the power of online processes. Barring the used car registration documents everything else is done in a paperless environment.

With the availability of used cars and the loan processes to acquire one, the millennial population is in a position to own cars quite easily. What is more, they can fuel their passion by choosing from a wide variety of options.

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Points to keep in mind before taking a used car loan

Feb 22, 2018

Why a car loan

In India, owning a personal transportation vehicle – a cycle, a motorcycle or a car – is an aspiration that is paramount in people. There is a periodic scaling up of this aspiration culminating in the desired objective of owning a car. In order to help people to own a car, many financial institutions such as banks and NBFCs such as Tata Capital offer new car loans and even used car loans.

Before jumping in to avail a used car loan we suggest that you carefully evaluate all your options and then go about availing a used car loan. To help you make a sound decision, we present the following used car loan guide.

Set a budget

The first thing that you do is to set a budget based on your ability to repay the loan. Setting a budget helps you to know exactly how much down payment you have to make, how much you can repay and therefore the loan amount you have to take.

Know your credit score

Remember that lenders check your credit score before they extend loans to you. The credit score tells the lender your creditworthiness based on CIBIL Score. If your score is above 750, you’re your credit rating is high and you can negotiate good terms. If your credit score is less than 750, then the lender sets more stringent terms especially in regard to interest rate, which will make your loan costlier to avail. Therefore, ensure your credit score is high by being prompt in paying EMIs of any other loans you may have taken. Sometimes, it may make more sense to get your score up to 750 before applying for a used car loan.

Examine used car loan terms from different lenders

Each lender has different policies on used car loans. You must examine several lenders and evaluate their offers and then make a considered decision. This evaluation will help you to get a good car at optimal terms.

Short tenure or long tenure

It is always better to take a used car loan for shorter tenure as you will pay much lesser amount of interest than if you were to take a longer tenured loan. If you can afford it, go for the short tenure loan even though the EMI is higher.

Choose the used car within the budget

The used car market has undergone a sea change with major automakers offering pre-owned cars to cater to used car customers. They do up the car before presenting it to you. They also offer a good price and other benefits. Some of the lenders such as Tata Capital have also tied up with automakers to offer seamless used car purchase process. It makes sense to examine the used car offers from different automakers. Often, you will get a good used car of a brand that does not have good resale value. Typically, the resale value is low for the first resale. You can benefits from such cars both in terms of performance and price.

Choose a local dealer if you have good rapport with the dealer

If you have a past relationship with a used car dealer and your experience has been good, then it may help you to examine the dealer’s offer and compare it with the automakers’ pre-owned car offers. It is possible that the dealer may have a bank of good quality used cars.

Check the documents

It is always good to check the documents thoroughly before purchase. On scrutiny of documents, you can track its history if it has changed hands. Open the bonnet and check the engine number and chassis number and compare it with the information on the documents. You can also verify if there is extended warranty. Check service records. Check for insurance status.

Check the vehicle

Give the vehicle a thorough look over to rule out damage due to accidents. You can ascertain this by looking at the paint condition, usage characteristics, tire wear and tear, test drive, noise, vibrations and driving comfort. Check all the parameters such as lights, door locks, indicators, instrument cluster and interior. Check for a spare tire, boot space, tools and chassis.

Based on the above guideline you can proceed to plan your used car purchase with an appropriate second hand car loan from a reputable lender such as Tata Capital.

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Top car releases in 2018 in India

Feb 22, 2018

The Indian car market is set to rock in 2018 with a slew of new launches that India has never seen before. All the car segments will see new launches.

We present below our top 10 picks with representation from each segment.

Rolls-Royce Phantom

This is the market belonging to the super rich where price is of no concern. Our pick is the Rolls-Royce Phantom.

At a price tag of Rs 8 crore (Rs 10 crore for customization), car lovers will get the 8th generation Rolls Royce Phantom powered by a 6.75-liter V12 turbocharged twin-engine belting out 900Nm@1700 rpm and 571hp@5000rpm. The highlight of this car is the roof interior resembling a milky way created by hundreds of tiny lights. The ride is super quiet.

Lamborghini Urus

Can you imagine an SUV from the Lamborghini stable? Well, the Lamborghini Urus is a winner all the way. Its power comes from a V8 4-liter twin-turbo engine that can reach 100 Km per hour in just, hold your breath, 3.6 seconds. For that kind of thrill, the SUV costs upwards of Rs 3.5 crore.

Lexus LS 500h

Among the high-end cars dominated by Mercedes, Audi, Volvo, BMW and Lexus, we like the Lexus LS 500h.

This competitor to Mercedes S-Class and BMW-7 Series sports a 3.5-liter V6 petrol engine. The speciality is the twin electric motor delivering 354hp. The cabin boasts front seats with massage, cooling and heating functions adjustable for 28 positions. The rear seats come with additional functions that include individual adjustment capability and backrest with 48-degree tilt and their own ottomans. The price is Rs 1.5 crore.

Tata H5 SUV

Tata Motors will release its H5 SUV. Tata is launching its first SUV built on the JLR platform but with a distinct Tata Motors pedigree. The Tata H5 will accommodate a 140 hp and a 180 hp engine. The price is a mouth-watering Rs. 15-20 lakh in the Jeep Compass and Hyundai Creta range.

Datsun Go Cross

After daring to be different, Datsun from the Nissan family is adding to its Go and Redigo range with an extremely well priced (Rs 5-7 lakh) car that will delight the lower end customers. You will almost get an SUV though the car is at the higher end of the hatch. The features such as fancy tail lights, spoiler, roof tray with rails and projector headlamps will warm the cockles of car enthusiasts. This Cross may become the first 1.5-liter diesel engine car from Datsun.

Hyundai Ioniq

Hyundai is the second largest car manufacturer in India. It is bringing the plug-in hybrid sedan Hyundai Ioniq to the Indian market. The Ioniq sports a 1.6-liter 4 cylinder petrol engine and an 8.9kWh lithium-ion battery to run either on electricity or petrol. Passengers can enjoy a quiet ride within the city when driven on electric power.

Maruti Suzuki Swift

Maruti’s very popular Swift is receiving a thorough makeover with a new engine platform known as HEARTECT. The lighter engine brings more agility to the drive. Besides, the new Swift is up to global standards in safety.

Tata Electric

Tata Motors is bringing two variants in its electric range. The popular Tiago will boast an engine delivering 85 kWh power at 200 Nm torque. Its performance characteristics include a top speed of 135 km per hour and an acceleration of 0-100 km per hour in 11 seconds. Tata is likely to revamp its Nano and launch with an electric engine under a new sub-brand – Pelican.

Ford Freestyle

The Ford Freestyle boasts 3 variants with differing power options – two petrol variants and a diesel variant. The petrol variants offer 17-18 km per litre mileage while the diesel variant will provide 25 km per litre. Ford’s new launch will perk up the Rs 6-8 lakh segment giving its competitors such as Maruti Swift, Honda Jazz and Hyundai Grand i10 a tough fight.

Mahindra S 201

Mahindra is introducing its S 201 model in 2018. Mahindra is using the SsangYong Tivoli platform for this model. The car will boast quality features – an amalgam of Tivoli’s quality features and Mahindra’s penchant for India specific offerings. This is taking on the likes of Renault’s Captur, Hyundai Creta and Maruti’s Vitara Brezza.

The year 2018 promises a great year for car buyers with all the automakers vying for the buyer’s attention with advanced features, new technologies, attractive price points and safety and performance standards including electric powered cars and highly fuel-efficient vehicles.

You can choose any model and we at Tata Capital will finance you with a hassle free car loan perfectly created to meet your needs. You can use our car loan EMI calculator to easily plan your EMIs that you are comfortable to accept. We also offer you used car loan, if you so desire.

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