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Why is There a High Demand for Used Luxury Car

Why is There a High Demand for Used Luxury Car

Life is too short to drive boring cars, right? Looks like much of the Indian populace is of the same opinion. After all, the Indian automobile market’s holding period for luxury cars is lesser when compared to the economy segment. However, they’re not just any luxury cars, but second-hand luxury cars!

Indian luxury car market recorded its steepest decline in 2020

2020 has been a rough year for everyone. Even the luxury car market took a harsh blow. In the light of the pandemic, individuals and businesses drastically cut down on discretionary spending. Experts estimated that this will lead to players such as Mercedes-Benz taking anywhere from two to three years to recover the lost volume.

Setting something aside for what’s to come becomes the new mantra: Used luxury vehicles rise to popularity

In the meantime, a new trend took over the mobility space – investment in second-hand luxury vehicles. However, the growth story of the market dates all the way back to the time GST was introduced. The introduction of GST brought with it a uniform system of taxation, benefiting both buyers and sellers.

Then comes the demographics – most of the used luxury cars are demanded by car enthusiasts who wish to try out different luxury car brands but not so much to shell out a huge sum for each. And since with the second-hand segment, the costs come down significantly while the performance remains top-notch, the demand for such cars is rising.

The waiting time for luxury cars also reduces to a negligible duration for used cars. While luxury cars are notorious for their long waiting periods, used luxury cars can be delivered to buyers almost instantly.

Furthermore, the pandemic, with its economic and professional setbacks, and the global semi-conductor shortage have compelled people to put a check on their luxury automobile spending. And since for many, purchasing a new luxury vehicle may not be possible, they choose to invest in pre-owned luxury cars.

Additional Read:  Getting a Used Car Loan for Economy Cars vs Luxury Cars

How are luxury car buyers meeting their funding needs?

When previously owned luxury cars are available at almost the same price as any other hatchback or modest four-wheelers, why would one not want to invest in them? More so since buyers can avail of easy used car loans to meet their funding needs!

There are plenty of loan options available in the market to finance your pre-owned luxury car dream. Some lenders cover up to 95% of the car’s value and sometimes even 100% for certain models. The used car loan interest rates are considerably lower. Here are some reasons why used car loans are the most popular way of financing used luxury cars-

Flexible tenure and repayment options

Most used car loans offer a flexible tenure so you can repay the amount at your own pace. Some lenders also allow for flexible EMI payments, where you can choose a repayment scheme that benefits you and is in line with your financial goals.

High loan amount

A used luxury car will cost more than a used economy car. Most lenders keep this in mind while settling on their maximum loan amount under the used car category. So they offer high loan amounts that you can avail of if needed.

Competitive used car loan interest rates

The market for pre-owned luxury cars is booming and lenders offer attractive second-hand car loan interest rates to take advantage of this growing demand. Some lenders will even offer you loans at rates lesser than the market’s average used car loan interest rate. Your second-hand car loan interest rate can be reduced in the case of high credit scores, low debt-to-income ratio, higher down payment, or longer repayment tenure.

Quick loan processing

People prefer used luxury cars because they cut down the waiting time. With most financial institutions offering rapid loan processing for such loans, your time to own luxury cars only approaches even faster.

Additional Read:  Buying a Luxury Car is Not a Luxury Anymore

Ready to purchase your pre-owned luxury vehicle? Tata Capital can help fund your dreams with their second-hand car loans! We offer relaxed, used car loan eligibility criteria and customised loan offerings. You can avail of an amount ranging anywhere from Rs. 1 lakh to Rs. 50 lakhs for a tenure of 12 to 72 months and our used car loan interest rates are among the lowest in the market.

So, what are you waiting for? Use our used car loan EMI calculator, determine your affordability and fund your luxury automobile purchase today!

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