Second hand sales are not new to the Indian market; residential property, commercial buildings, businesses, and vehicles. The market for used items is a pretty large chunk of our economy. Indians are very good at evaluating an item and coming up with a fair sale price. And to support this part of the economy, banks & NBFCs have a number of loan products.
Buying a used car isn’t always the easiest thing to do. It’s a huge investment, and you want to make sure you’re getting the best deal possible on your used car loan. It is a great way to save some money and get a car that is just right for you. But with so many used cars dealers in the market, how do you know if you’re getting a good deal? You also want to be able to pay off the loan as quickly as possible.
Not to worry; the used car financing is growing at a very rapid pace. In 2022, the sector experienced a significant rebound, growing by more than 60% year over year. The industry is predicted to reach $10 billion in revenue by 2027, growing at an estimated annualized rate of 20%. A CRISIL report claims that approximately 4.2 million Indians are responsible for the country’s high used car demand, and that the lockdown saw a 115% increase in used car sales.
It is easier to get a used car loan than ever before. Lenders have made it easy for borrowers to get a used car loan with simple documentation and quick processing times. This makes it possible for people to own the car of their dreams.
What Benefits Do Borrowers Enjoy While Getting A Used Car Loan?
In the world of auto loans, an experiential journey with paperless and immediate loan sanctions is now a reality. You can find a car loan that best suits your requirements by using a few taps on your smartphone. Many fintech companies have embraced digitalization by developing platforms and price comparison tools that give prospective borrowers transparency into their lending options. This makes the entire loan application process simple and transparent.
The current loan structure allows for up to 100% financing for used cars. This means that you can get a loan for the entire amount of the car. The interest rate on used car loans is similar to new car loans but the repayment tenure is only 5 years with most lenders.
The current loan structure allows for up to 100% financing for used cars. This is a great way to get a car with no money down. You can also get interest rates similar to that of a new car loan. The monthly payments will be lower and you will have the car paid off sooner. The disbursement time is also faster, allowing you to drive out in your new car on the same day.
Here are a few ways lenders are attracting borrowers with their used car loans –
Integrated Digital Platforms: In response to the increasing demand for new and used car finance, several OEMs and financiers have launched dedicated digital platforms to provide customers with car financing solutions. Do thorough research before applying to get a better deal. While most lenders will offer you up to 80% financing, several products offer 100% on-road financing.
Genuine Sales Strategy: One of the main reasons for fintech firms’ growing popularity is that these platforms offer tailored products that are customized based on a user’s repayment capacity, repayment history, and desired budgets. Compare the platforms’ offerings in terms of approval speed, minimal paperwork, competitive interest rates, flexible EMIs, and transparency. These will assist you in selecting the best fintech platform for your needs.
Efficient Loan Process: The platforms are designed to make the entire loan process simple and convenient, with a quick turnaround time. With Video-KYC, Account Aggregator, e-NACH, and e-signing, it is now possible to obtain a car loan without leaving your home. The entire procedure is transparent, requires minimal paperwork, and, most importantly for you, approval takes minutes rather than days. Once approved, the loan is immediately disbursed.
Knowledgeable Staff: The human aspect of these transactions are of paramount importance. The staff are well-versed in the loan process and are easily approachable at all times. They will help you understand the different loan options and help you select the best one for your needs. They are available to answer any questions you may have and will work diligently to get you the car loan at the earliest.
Tips For The Borrower To Make The Used Car Loan Process Easier
- Do your own research when applying for a car loan. Compare the platforms’ offerings in terms of approval speed, minimal paperwork, competitive interest rates, flexible EMIs, and transparency. These will assist you in selecting the best fintech platform for your needs.
- Before signing on the dotted line, it is important to ask for a thorough inspection of the car and report on the results. Many times, people are sold a lemon without knowing it. Be sure to have an expert look over the car and make sure everything is in working order. It is also important to get the car’s history report to ensure that it has not been in any accidents or had any major repairs done.
- Use car loan EMI calculators to get an idea of the monthly payments you will have to make. You can match it with your budget to decide on the best car loan option.
- There are a few documents you will need to have in order before you apply for a used car loan. Make sure you have your driver’s license, proof of insurance, and proof of income ready. You should also have a copy of the car’s title and registration. Having all of these documents ready will make the loan process go much smoother.
- Choose a reputed lender; Some of the best lenders for used car loans are those that are well-known and respected. These lenders have been in the industry for many years, and have the knowledge and resources to get you the car loan you need as quickly and easily as possible.
A used car can be a great investment, even for new drivers. Be prudent, do your research, and choose the right lender for a good loan experience.