Everyone dreams of buying a car, but considering the prices of brand-new cars, a large demographic has now switched to buying used cars, resulting in a hike in car financing. In fact, a study reveals that the Indian used car financing market is currently valued at USD 7.95 billion. This number is projected to grow to USD 14.87 billion, with an estimated CAGR of approximately 11% from 2022-2027.
Buying used cars has multiple benefits, and it is now easier to purchase them. While used car loans help in buying a ride, car loan apps have emerged as a smart financing method to borrow those loans.
Let's examine this market shift closely and understand how used car loan apps are steering dreams.
Perks of Buying Used Cars
The auto industry is evolving fast, and simultaneously, the rising car prices are rising each year. Once a social taboo, the idea of buying used cars is gradually gaining acceptance in the Indian community. A well-chosen pre-owned car can be just as good as a new one. Here are some reasons why people are switching to buying used cars.
1. Save and Upgrade
Buying used cars means saving big. In minutes, a new car loses 8-10% of its value via depreciation after the first purchase. With less upfront cost, you can even upgrade to a higher segment.
2. Good Variety Within Your Budget
When you buy a used car, you get more variety within your budget compared to new cars. By considering your basic requirements and a suitably used car loan, you can find the perfect match for your needs.
3. Less Depreciation, More Value
Used cars depreciate slower than new ones. You retain more value over time compared to a brand-new purchase.
Reasons to Buy Your Car Via Used Car Loan Apps
Owning a car is essential for comfortable commuting avoiding reliance on public transport or others. A car loan app in India can help you buy a car for daily chores like grocery runs or emergencies like hospital visits. Here are some perks of availing a loan for used cars through apps:
1. Reduces Lump Sum Payment Burden
A car loan app in India can help reduce the lump sum payment required for purchasing a vehicle by spreading the cost over a period of time. Instead of paying the full cost upfront, you can finance the purchase with a loan, allowing you to make manageable monthly payments.
For example, a new Honda City costing 12 lakhs may drop to 9 lakhs when used. Paying this amount upfront is tough, so a loan helps spread the cost.
2. Easy Monthly Instalments (EMIs)
A car loan app in India lets you pick a suitable repayment structure like EMIs. It helps divide the cost into affordable monthly payments. For example, Instead of paying 9 lakhs at once, you pay 10-20% as a down payment and the rest in EMIs.
3. Variety of Loan Types
Just like home loans, used car loans come in various types. This allows you to choose based on your repayment capacity. Also, interest rates are negotiable, especially if you have a good credit score and a strong banking relationship.
4. High Loan Amount
Using a car loan app in India to buy a used car can help secure higher loan amounts compared to traditional bank loans easily. For example, you can get a loan as high as INR 50 lakhs to buy a second-hand car.
5. Flexible Terms
You have the flexibility to choose your loan amount, tenure, and EMI period. Payment options include post-dated cheques, online payments, or the ECS (Electronic Clearance Service) auto-debit facility, where the EMI automatically gets deducted from your bank account.
6. Great Interest Rates
Using a reliable NBFC car loan app in India often provides access to competitive interest rates. These rates are generally lower compared to traditional financing options offered by banks or dealerships. Lower interest rates translate to reduced overall borrowing costs, making it more affordable to finance a used vehicle.
7. Easy Paperwork
The used car loan process is hassle-free when borrowed online through apps because of the easy online application. You only need to submit the loan application form online. The required documents are basic and minimal, simplifying the entire process.
Accelerating Desires with Used Car Loans
Used car loans have made it easier for many people to turn their dream of owning a car into a reality. Whether for personal or business use, these loans offer a practical solution for those looking to avoid the high costs of new cars. Apps from NBFCs like Tata Capital make this process even smoother by ensuring that car loans are easily accessible.
Plus, the convenience of their app means you can manage everything from your phone. Don't wait any longer—download the Tata Capital app today and take the first step towards driving home your dream car.
