The used car sector has flourished a lot in the past few years. Used cars that felt like a liability to most owners a few years ago, have now turned into assets for others. At least, now one can finance the down payment and few of the instalments of their new car by selling the old one. But what are the factors that really led to this booming market?
Better Loan Offers
One of the main reasons why people are buying more used cars is because banks and financial institutions are providing better loan offers. Contrary to what happened until a few years ago, when banks and financial institutions financed only new cars, these days, used car loans are easily available at competitive rates. Besides, companies such as Tata Capital provide flexible EMI, customisable repayment and prepayment options, which help customers repay the loan at their convenience.
Disposable Cash in Hand
The overall standard of living of the working class in India has increased in recent times. In such circumstances, many working individuals start taking care of their needs, comforts, and trying to fulfil their dreams. Owing a car, satisfies all the three. Moreover, online used car loan options are making it much easier for the younger generation to avail a used car loan quickly and in a hassle free manner.
Safety and Utility
Back in the day, when teenagers just enrolled in colleges, their parents bought them new bicycles. A couple of decades later they started buying bikes and scooters for their children. These days, parents prefer to buy their children cars. Similarly, many families have working women today, who prefer a vehicle to commute back and forth. People feel their women and children are safer in cars and are less vulnerable to accidents. But since buying a brand-new car for every family member can be very expensive, people prefer buying a used car, which is in good condition. Moreover, the option to increase or decrease the used car loan repayment tenure as per their convenience, makes buying a used car more lucrative.
With the introduction of private run cabs and taxis, cab drivers are becoming more interested in owing their own vehicle, than being someone else’s drivers. Used cars have a perfect market in the cab industry, which make this possible. Since most used cars are well maintained, cab drivers have an option to offer the comfort and facilities of a new car to their customers at much lower investments.