{"id":9297,"date":"2023-08-29T03:18:10","date_gmt":"2023-08-29T03:18:10","guid":{"rendered":"\/blog\/?p=9297"},"modified":"2024-03-04T12:21:13","modified_gmt":"2024-03-04T06:51:13","slug":"top-5-myths-about-the-used-car-loan-industry","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-vehicle\/top-5-myths-about-the-used-car-loan-industry\/","title":{"rendered":"Top 5 Myths About The Used-Car Loan Industry"},"content":{"rendered":"\n

The\nused car industry in India is growing steadily. In 2018-19, sales of used cars\novertook those of new cars for the first time. The largely unorganized used car\nmarket is now attracting interest from the biggest names in the auto\nbusiness. <\/p>\n\n\n\n

Know More About Used Car Loan<\/a><\/div>\n\n\n\n

With\nthe latest Bharat 6 emission control norms coming into effect from April 2020, new\ncars are likely to become more expensive. This makes the used car market\nlucrative for auto finance companies and their retail partners. Secondly, the\nslashing of GST on used cars to 12%-18% from 28% is also an added incentive.<\/p>\n\n\n\n

Consumer\nperceptions about buying used cars are changing. However, several used car\nloan myths continue to influence buyer behavior in India. In this article,\nlet\u2019s attempt to dispel some of the most common used car loan\nmisconceptions:<\/p>\n\n\n\n

Myth 1: Banks dominate the market for used car loans<\/strong><\/p>\n\n\n\n

\"Used<\/figure>\n\n\n\n

Going\nfor a second hand car loan from your existing bank may seem like the\nobvious thing to do. However, the fact is that banks tend to charge a higher\nrate of interest on a loan for used cars. If you have an average credit score,\nyou are better off opting for an NBFC instead. They have a better approval rate\nalong with competitive interest rates. Statistics show that NBFCs dominate 80%\nof the second hand car loan market currently.<\/p>\n\n\n\n

Myth 2: Captive auto finance companies cater mostly to urban areas<\/strong><\/p>\n\n\n\n

Though\ndealer footprints are shrinking across India, the notion that captive auto\nfinance companies are only concentrating on the urban used car loan market is\nincorrect. According to the 2019 edition of IndiaBlueBook\u2019s Pre-Owned Car\nMarket Report, captive auto finance chains are, in fact, expanding\naggressively. Captive companies grew at 19% year on year, according to the\nreport. <\/p>\n\n\n\n

Myth 3: NBFCs do not offer value-added services comparable to banks<\/strong><\/p>\n\n\n\n

There\nis a general perception that NBFCs are solely focused on loan products. The\ntruth is that NBFCs have been steadily adding insurance and service packages to\ntheir portfolios. This has helped NBFCs move up to the value chain, especially\nwhen it comes to the second hand car loan segment.<\/p>\n\n\n\n

Myth 4: Online used car loan aggregators have a high turnaround time<\/strong><\/p>\n\n\n\n

Contrary\nto popular belief, online platforms make it easier for consumers to choose the\nperfect loan for their needs. Handy features like used car loan\ncalculator save time and effort.  You can expect a response from\nlenders in as little as a few hours. <\/p>\n\n\n\n

Myth 5: Brokers are the best option for a higher funding<\/strong><\/p>\n\n\n\n

Traditionally,\nIndian consumers have relied on brokers to get approved for a higher loan\namount. However, you can get funded for up to 85% of the used car loan<\/a> if the vehicle is\npurchased from an authorized dealer. This is because, unlike unauthorized\ndealers, an OEM follows standard certification processes, which reduce the risk\nfor the lender.<\/p>\n\n\n\n

Increased competition, regulatory changes, and diversification of used car loan financing are set to give Indian consumers better value for their money in the time to come. <\/p>\n\n\n\n

Realize your dream of owning a used car with attractive offers from Tata Capital.  <\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The used car industry in India is growing steadily. In 2018-19, sales of used cars overtook those of new cars for the first time. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":9298,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-9297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-vehicle"],"yoast_head":"\nTop 5 Myths about Used Car Loan Industry - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"Here are some common misconceptions about Car Loans that many of us are not aware of. 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