Loans for Used Cars

What are the check­points?

Consumer Voice - - Contents -

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.

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