Vehicle Loans

Used

Used Car Market Trends

Since the start of the 20th century, the Indian used car market has seen tremendous growth. Currently, one pre-owned car is sold for every sale of a new vehicle. The market size is expected to witness a Compounded Annual Growth Rate (CAGR) of 15.2% and may reach USD 75 billion by 2023.

There are many reasons why the used car market in India is witnessing a steady growth. Here are four trends in the used car market:

  1. Shorter ownership

Previously owners retained their vehicles for longer periods like six to seven years. However, technology is rapidly developing due to which newer models are released in short periods. Moreover, many urban families own more than one car, which reduces their usage ensuring these are maintained well. This allows individuals to avail of a car loan to buy a used vehicle at affordable prices.

  1. Increase in the number of organized players

Between 2005 and 2007, the Indian used vehicle market was controlled by the unorganized players that owned almost 95% of the total segment. The market share of organized players was only 4% during this period. However, the share of organized players has increased to 15% in 2010 – 2012 and the same is further expected to increase to 18% by 2021. Therefore, consumers are more confident about the quality of the pre-owned vehicles. Moreover, these organized vendors assist buyers to avail of a used car loan, which contributes to the rise in the demand.

  1. Societal acceptance

In the past, society perception was not favorable when an individual opted to buy a used car. However, this is slowly changing and a higher number of people are no longer worried about owning old vehicles. The quality of these pre-owned cars is good with ownership reducing to shorter periods. Moreover, if a person is a new driver owning a used car is prudent until he is more confident about his driving skills. The easy availability of pre-owned car loan makes it easier to own a vehicle.

  1. Increasing fuel prices

The economic slowdown has reduced the sales of new cars. However, the used car markets have seen a rise. The increasing fuel price is another reason why the sale of pre-owned vehicles is rising. Buyers would like to reduce their total car ownership expense by decreasing the loan for used cars amount thereby reducing the monthly installment.

As acceptance grows, the sale of used cars is increasing. More and more buyers find this option more affordable and see a true value for money in it.

Related Topics

Vehicle Loans

Housing Loan 101: 5 step guide on availing a Home loan

மேலும் தெரிந்து கொள்ளுங்கள்

Vehicle Loans

Planning to Sell Your Car? Get the Best Price

மேலும் தெரிந்து கொள்ளுங்கள்

Vehicle Loans

Avoid These Common Used Car Loan Mistakes

மேலும் தெரிந்து கொள்ளுங்கள்

Vehicle Loans

Things to Consider While Availing a Commercial Vehicle Loan

மேலும் தெரிந்து கொள்ளுங்கள்

Vehicle Loans

Types of Vehicle Loans Available in India

மேலும் தெரிந்து கொள்ளுங்கள்

Vehicle Loans

Are You Eligible for a Tractor Loan? Find out Now!

மேலும் தெரிந்து கொள்ளுங்கள்

தொடர்பில் இருங்கள்

மஹிந்திரா & மஹிந்திரா நிதி சேவைகள் லிமிடெட்
4 வது மாடி, மஹிந்திரா டவர்ஸ்,
டாக்டர் ஜி.எம். போசலே மார்க்,
P.K. குர்னே ச k க், வோர்லி,
மும்பை 400 018.

இங்கே க்ளிக் செய்யவும் உங்கள் அருகாமையில் கிளையை கண்டறிய உள்ள மஹிந்திரா ஃபைனான்ஸ்

Calculate Your EMI

  • Diverse loan offerings
  • Less documenation
  • Quick processing
Loan Amount
Tenure In Months
Rate of Interest %
Principal: 75 %
Interest Payable: 25 %

For illustration purpose only

Total Amount Payable

50000

மேல்
fraud DetectionFraud Advisory MF - Whatsapp ServiceWhatsApp
*