The trend of buying a second hand car as a first car is increasing among people. Image credit source: Pixabay
Now the craze of buying a second hand car is also being seen among the people. Especially youngsters are preferring a used car as their first car. Therefore, now many non-banking finance companies (NBFCs) have started giving loans for these cars as well. Let’s know about it…
Let us tell you, one of the major reasons for introducing a loan product for second hand cars is the increasing sales of electric vehicles. Industry experts believe that people will sell their old petrol and diesel cars due to people moving to electric cars, so now loan facility will be needed for them too.
Who gives loan on second hand car?
Many NBFCs have introduced loan products for second hand cars. These include Mahindra Finance, Shriram Finance, Poonawalla Fincorp and Cholamandalam Finance. Apart from this, very soon other companies can also enter this segment.
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Earlier, the second hand car loan market was 20 percent, but in the last one year it has increased to 35 percent. However, the interest rate for a second hand car loan is higher than that for a new car loan.
Interest is so high on second hand car loan
The interest you have to pay on taking a loan for a new car, this interest rate can be higher by 2.5 percent to 4 percent on a second hand car loan of the same category. In the financial year 2022-23, the second hand car business within the country has increased by 7 percent on an annual basis.
In the financial year 2022-23, where about 45 lakh second hand cars were sold. By the financial year 2025-26, this sale is expected to increase to 70 lakh cars. The second hand car market is growing at the rate of 12 to 14 percent every year. At the same time, in the next 5 years, 35 percent of the second hand car market in the country can be organized.
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cheap second hand electric car
Let us tell you, along with the sale of electric cars, the sale of second hand cars has also increased in this segment. Compared to a common petrol car, the value of a second hand car of an electric vehicle falls faster in the market. 2 year old electric car is available at a value of 70 to 75 percent as compared to the new one.
This is how you get loan easily
Loan companies for second hand cars prefer used cars sold from the organized market. Nowadays every automobile company sells second hand cars on its own portfolio. Second hand cars are also sold verified after a lot of mechanical checks. Loan is easily available on these cars.
Not only this, online platforms like Spinney and Cars24 also provide verified service, refurbished service and loan facility collaboration for used cars.