Used vehicles are steadily becoming commoner propositions for a major base of consumers in India. There are well-defined reasons for these trends, according to experts. For instance, the used car market in the country is expected to witness 11% of compounded annual growth, according to reports, with the possibility of achieving sales figures of close to 8.3 million units by FY2026. More people have been choosing pre-owned cars ever since the pandemic led to several shifts within the mainstream automobile industry. These aspects include long waiting periods due to supply shortages, increasing costs of buying new vehicles, and the associated costs including road tax and other charges.
Other factors which have driven the market include easier availability of used cars online throughout multiple platforms and greater ease in transparent buying and selling. At the same time, getting credit/financing for purchases is also easier now, with easy access to personal loans from platforms like LazyPay and others for buying used cars. Consumers know that they can now get instant loans with better terms and conditions for buying used cars. At the same time, they can save money hugely on their purchases since they will not have to pay the additional costs that are usually incurred while buying new cars.
Several new-age used car platforms have also made test drives and other inspections readily available and more transparent for buyers, guaranteeing higher peace of mind. They also offer other attractive features like warranties, accessories, and certified/inspected vehicles. This naturally leads to higher trust amongst buyers who are opting for used cars across categories. The other paperwork and transfer formalities are also taken care of by these organized used car players, leading to higher market penetration, not just in major Indian metropolises, but also in Tier-2 and Tier-3 cities and smaller towns.
What are the used car purchase trends visible today?
Here are some trends that are readily visible in the used car market in India today:
- The Indian used car market is anticipated to touch more than 70 lakh units in sales figures by the year 2025-26, as compared to 38 lakh units in 2021.
- Growth drivers include easy personal loans and financing options, more first-time buyers in the market who are on a budget and wish to start their car ownership journey with something more manageable, increasing digitization and availability of used cars on organized and branded platforms, and changing aspirations and demographics.
- First-time buyers, according to reports, contribute close to 50% of pre-owned car sales in the country. The share also went up by 8-10% throughout FY21. Personal mobility requirements will further go up due to nuclearization and urbanization, both of which are taking place rapidly across Indian cities.
- More organized players and options are playing a vital role in drawing more buyers to the market. They are offering authorized/certified vehicles along with warranties, inspection reports, transparent pricing, and help with all formalities in tandem with accessories and more. Even leading brands like Kia and Volkswagen are eyeing this space.
- The ownership costs for used vehicles are significantly lower than for new cars. The latter comes with higher RTO/registration charges, taxes, and costly insurance plans along with higher depreciation rates. Smaller towns and cities will outpace metro cities in terms of overall demand for used cars.
- More people are looking for cheaper car investments with good mileage and features. The used car market in the country is already the world’s fifth biggest and 5 million units are sold annually, with millennials comprising 80% of the market. Business and personal mobility will continue to be major growth drivers for this space along with budgetary limitations due to inflation, and macroeconomic fluctuations.
Personal loans for used car purchases
Now that you know why people are tilting more towards used vehicles in the current scenario, what about financing? Some organized players do offer financing solutions while there are other options for instant loans that can help take care of used car purchases. LazyPay is one of the top choices for buyers with its XpressCash personal loan facility. Here are some of the key features of the same:
- Instant loan up to Rs. 5 lahks.
- No physical documentation and instant approvals.
- 5-minute loan application process- checking eligibility with a few basic details, completing the online application on the LazyPay app, and getting instant XpressCash in your account.
- Flexible EMI options with a 100% digital process.
- Easy tracking for ongoing EMIs and loans on the LazyPay app with regular notifications and reminders.
- Easy eligibility criteria based on the consumer’s history and tenure with LazyPay. The app home screen shows a message indicating the eligible amount for customers once they are eligible.
- The minimum amount is Rs. 3,000 and the maximum limit is Rs. 5 lakh.
- Completing KYC, providing bank details, setting up auto-payment, and signing the loan agreement completes the process.
These are some of the biggest benefits of using LazyPay to avail of personal loans for used car purchases. With used cars becoming more attractive for your mobility needs today, it is time to download the LazyPay app and work your way toward being eligible for an instant loan to fulfill your aspirations.
Description:
Buying a used car is easier in the current scenario due to several reasons. The biggest factor is the availability of financing solutions or personal loans. LazyPay is one app that ensures instant loan facilities for eligible users, based on their history and tenure with the app. The entire procedure of applying for a loan is hassle-free and takes only a few minutes. Users can check their eligibility by entering some basic details and then finish the online application by completing the KYC process, providing bank details, setting up the auto-payment facility, and signing the loan agreement. Thereafter, the loan amount is credited instantly to their bank accounts. The whole process is digital without any physical paperwork or other complications. Loans are speedily processed and consumers can track and manage them thereafter on the LazyPay app with payment reminders as well. Since personal loans are readily available for a large spectrum of users, buying used cars is even more convenient today.
More people are shifting towards used cars due to the lower ownership costs and initial outgo as compared to new cars which come with costlier taxes, registration charges, and insurance. Inflation and tightening budgets are enabling a more conducive atmosphere for used car purchases, along with factors like first-time buyers who wish to start their ownership journey with lower financial and management risks. Hence, the trend should continue with increasing aspirations for personal and business mobility. At the same time, organized used car platforms are making it possible for buyers to get authorized/certified vehicles with warranties and other features. This is another factor driving demand for used vehicles in the country.
Used vehicle sales figures could accelerate in the next few years and this is where the availability of personal loan solutions like the ones from LazyPay comes in handy. This will especially benefit millennials and younger consumers who are just starting their car ownership journey and want quick approvals, better loan application experiences, and flexible repayment options.