Loans for Used Cars

What are the checkpoints?

A used car was sold for every new car sold in India in 2014. Each year, over 3 million used cars are sold in India, as against 2.2 million new cars. In 2015–16, 3.3 million used cars were sold versus 2.8 million new ones. Alongside, used-car finance in India is expected to grow from below $2 billion now to over $10 billion of annual lending by 2021. The entry of organised players in what was hitherto a largely unorganised sector, coupled with behavioural changes among sellers and buyers, have driven the market to unprecedented growth levels. To all appearances, the market is going to only grow. The following report is an encapsulation of some essential things that a prospective buyer should know if they are planning to get their car financed by a bank. A comparative study of 11 banks along critical variables will also tell you a thing or two about what to expect in terms of services and charges.

– Subas Tiwari & Gopal Ravi Kumar

There are many reasons why you will buy a used (or pre-owned, or secondhand) car. For instance: a) You cannot afford the cost of a new car. b) A used car is cheaper due to pre-loaded insurance

and road tax. c) You can fulfil your dream of owning a high

branded car or even an MUV/LUV.

With the increasing number of players in the market, organised as well as unorganised, you can hope to get a good deal too. The emergence of so many players has brought in not just competition but also credibility and consumer confidence. And all of these factors are helped by the fact that there is greater social acceptance of people buying used cars.