This paper investigates the influence of personal loans and online lending applications on used automobile buyer preferences. Personal loans have evolved as a major financial weapon in recent years, considerably influencing the dynamics of the used automobile market.
With the introduction of Internet lending applications, acquiring Personal Loans in India has become more straightforward and accessible for purchasers. This article examines the influence of personal loans and online lending applications on used vehicle buyer choices, emphasising their benefits and the changing environment of automobile ownership.
Today, various obvious patterns in India’s used automobile market reflect the shifting dynamics of vehicle ownership. The expected climb in sales statistics is one striking trend, with predictions predicting that the Indian used automobile industry could reach 70 lakh units by 2025-26, a significant increase from the 38 lakh units registered in 2021.
Impact of Personal Loans on the Used Automobile Market?
Several causes are contributing to its expansion. To begin with, simple personal loans and financing alternatives have made it easier for anyone, particularly first-time purchasers on a budget, to enter the used automobile market. This also has expanded the client base and increased sales.
Furthermore, increased market digitisation and the development of organised and branded platforms have made it simpler for customers to locate and acquire used automobiles. Many people like these platforms because of their ease and openness. Buyers’ changing ambitions and demographics also impact the used automobile market.
According to reports, the attribution of nearly 50% of pre-owned automobile sales in India to first-time purchasers increased by 8-10% during FY21. In addition, rapid urbanisation and the nuclearisation of Indian cities have increased the demand for personal transportation, prompting more people to consider buying old vehicles.
The market’s presence of organised companies and reliable alternatives has been critical in attracting customers. Moreover, these companies provide authorised/certified automobiles with warranties, inspection reports, clear pricing, and assistance with the necessary paperwork.
Another important factor driving the second-hand automobile industry is the much-reduced ownership expenses compared to new vehicles. New automobiles frequently have higher registration fees, taxes, insurance plans, and faster depreciation rates. As a result, smaller towns and cities are likely to have a higher demand for secondhand automobiles than major metropolitan areas.
Availability of Personal Financing for Used Automobile Purchases in 2023
Personal loans have emerged as a popular option for financing used automobile purchases. Furthermore, with the increased demand for old automobiles, numerous organised companies in India now offer financing alternatives through online lending applications. Simultaneously, there are choices for rapid financing that may aid purchasers in obtaining their preferred used automobiles.
LazyPay, a well-known company in this field, offers the Xpress loan facility, which includes,
- Several major features: LazyPay allows borrowers to receive quick loans of up to Rs. 5 lakhs, giving the required financial support for acquiring a used automobile.
- No physical documentation and rapid approvals: The loan application procedure is simple since there is no requirement for any physical documentation, and it provides acceptance promptly, saving purchasers significant time.
LazyPay offers customisable EMI choices with a 100% digital procedure, allowing purchasers to select a payback plan that best matches their financial condition. The entire process is digital, from application through repayment, assuring simplicity and ease of use.
- Easy tracking and reminders: The LazyPay app offers borrowers a user-friendly interface for managing their ongoing EMIs and loans. Borrowers who get regular notices and reminders can better manage their repayments.
The determines eligibility by LazyPay based on the consumer’s history and stay with the platform. Customers are presented with the qualifying loan amount on the app’s main screen once qualified, making it obvious and handy for them.
- Loan amount flexibility: The personal loan facility has a minimum loan amount of Rs. 3,000 and a maximum loan amount of Rs. 5 lakhs, giving borrowers a variety of alternatives to meet their unique needs.
Simple loan completion procedure:
- Completing the loan process with LazyPay entails simple stages, such as completing the KYC process.
- Submitting bank information.
- Setting up auto-payment.
- Signing the loan agreement.
These procedures ensure a quick and easy borrowing experience.
Conclusion
In a nutshell, the used automobile industry in India is undergoing remarkable developments, which are being pushed by reasons such as easy personal loans, increased digitisation, shifting desires, and the existence of organised companies. These developments are altering customer choices and fueling industry expansion. As the market evolves, it is anticipated to provide more alternatives and better services and meet the different demands of purchasers across the country.