26495
Used-car loans get cheaper as biz gets organised
Posted on 20 Jun 2009832 Views1 Comments
New Delhi: As used-car business gets more organised, loans have become cheaper. Interest rates have fallen by around 2% to about 15.5%, as the asset quality (vehicles sold) has improved with all carmakers joining the used-car business.
For a customer buying a second hand car, the finance payout on an Rs 4 lakh car has gone down by around Rs 2,000 per year and it has also reduced the gap between the interest rate on loans for new cars and used cars by 4-5%. Customer interest for used cars has increased in the past year because of handsome bargains on newer models and uncertain market conditions.
In the past few years, almost every carmaker - Maruti's True Value, Hyundai Advantage, Honda's Terrace, GM's Chevrolet OK, Mahindra's First Choice, Tata Motors' and Ford Motor - have started their certified pre-owned car programmes. This has increased the share of organised business to around 20% from 4-5% in the past three years.
Around a million used-cars are traded every year and a bulk of these deals is dominated by neighbourhood dealers, roadside garage mechanics and direct selling by owners. Used-cars sold by car companies go through a 110-point checklist, bringing higher trust in the business.
Do you like this story?
- Previous Story
- Next Story
Readers' opinions ( 1 )
Post a Comment
Post a Comment-
sunny
send me details of swift diesel engine
Maruti to inspect car ACs for free at weekend service camp
by Team ZigWheels
Maruti Suzuki's "Beat The Heat"...
Making of Rolls-Royce Wraith launch film : Video
by Team ZigWheels
The video describes how the launch film of the...
The Ferrari Way : Special Coverage
Ferrari has been voted as the most powerful brand in the world according to Brand Finance and the...
Chevrolet Enjoy : Special Coverage
Designed to take on everything from the Maruti Suzuki Ertiga to the Toyota Innova the Enjoy is...
