Today cars have shifted from a luxury product to an essential utility item. Add to it, the automobile industry provides potential vehicle-buyers with newer options to choose from every year.
But, buying a brand-new car can exhaust your savings and leave you under the burden of hefty EMIs. Hence, investing in a second-hand car with the help of a used car loan can save you some big bucks on your purchase.
The second-hand loan market for cars has witnessed a sharp rise in recent months. Financial institutions have recorded a peak in the number of applicants who want to borrow money to purchase second-hand cars.
Here is an overview of a primary factor that will shape the used car scenario in 2021.
The unprecedented pandemic
The COVID-19 pandemic caused havoc in the global economy, hampering people’s jobs, salaries, and impacting businesses across the world. Individuals are still reeling from it trying to cut corners to make ends meet and boost savings for other essential expenditures like EMI, fees, and rents.
As COVID-19 made its way up into the alley, safety from this deadly virus became a crucial priority. Naturally, the safety of public transport raised multiple questions. As a result, there was a striking rise in the sales of vehicles, especially second-hand cars. This reflected an inclined graph in car sales, which will consequently impact the used car loan 2021 trends as well.
Additional Read: Top 5 Myths about the Used-Car Loan Industry
The impact on lending institutions
Lending institutions have processed a higher enrolment for second-hand car loans, and they anticipate a further increase in applicants through the year that follows. These lenders are extending special loan schemes that fit used car loan eligibility requirementseasily for people.
So, once you decide to purchase a second-hand vehicle, you must evaluate your loan requirements and budgets before applying for used car finance schemes. To figure out your used car eligibility, visit your lender’s website.
Many lending institutions have made it easy for you to break down the loan amount configurations and compositions with the help of their online used car loan EMI calculator. This calculates your EMI based on the various principal amounts and tenures.
2021 will see a prominent need for second-hand car loans. If you intend to apply for a loan, thoroughly understand the used car loan interest rates that are provided by various financial institutions. It is important to select a loan where the interest rates are not shooting through the roof.
Avail of the online used car loan calculator facilityto figure out the best EMI solution from different lenders based on their interest rates.
You must avail of monetary assistance from financial institutions like Tata Capital that provide rewarding loan plans. Our used car finance offerings come with flexible repayment schedules and easy documentation processing.
To know more, log on to our website or give us a call today!