If you look at the numbers, the used car segment in the country is doing well. Its sales performance is better than that of the new car segment. In 2011, the sector sold only 1.6 million units of used cars. But the number rose to 3.3 million units in 2016. By the end of 2021, the sales figure may increase by 15% to 6 million units. The rise in younger customers with higher disposable incomes has been a boost. The availability of an organised used-car market has helped as well. Changing preferences have also supported the growth of the used car industry. Besides, the used car loan industry is changing too.
Ashok experienced this change in the used car loan segment while buying a second car for his family. He had settled on a pre-owned SUV. But he was apprehensive about the loan he needed to buy the car. To his delight, he got easy finance. This enabled him to buy the pre-owned car with ease and speed. Find out what changes in the used car loan segment made his experience so delightful.
Emergence of the online medium
Earlier, you had to visit banks and non-banking financial companies (NBFCs) in person. Only then could you get a used car loan. Now, you can get such a loan with the click of your mouse. Many lenders now offer a used car loan online. This makes the loan application process simple and convenient. Ashok found a loan for the SUV while relaxing at home. This was thanks to the online marketplace.
Easy loan application process
The online medium allows you to search for the best loan for buying a used car. You can also apply for the used car loan online. The loan details are available on lenders’ websites. You then need to provide the required details and documents. Submitting your loan application online is easy.
Higher demand for used car loans
The figures show an increased demand for used cars. The used car market is experiencing higher sales. More customers are making use of used car loans. Such loans have become popular among the young and the old alike.
Drop in interest rates
There is another helpful change in the used-car loan industry. That is the lowering of the loan interest rates. Lenders offer used car loans at interest rates as low as 8.75% or 9%. So, these loans are affordable for customers. Availing a loan to buy the car of your dreams has never been easier.
Available at higher tenures
Used cars were not too popular in the past. So, lenders offered used car loans of shorter durations. But the surge in the demand for used cars has changed things. Now, you get loans for higher tenures of five to seven years. This makes repayment easy for buyers as well.
Higher quantum of loan
Earlier, used car loans provided only 50% or 60% of the car’s value. Today, lenders allow as much as 90% of the car’s value as a loan on used cars. This is particularly useful if you plan on buying a used luxury car or a used SUV.
In a nutshell
The used car loan industry has changed for the better. Loans are now available easily. The amounts are higher and you get longer tenures. The easy availability of these loans makes buying a used car much easier. If you have been eyeing a used car, go for a loan now.