Here Are Four Myths About Financing Second Hand Cars Loan In Varanasi

In the wake of the devastating Covid-19 pandemic, personal mobility saw a dramatic increase in demand. In accordance with the Society of Indian Automobile Manufacturers (SIAM), the used car selling market is forecast to grow at a 10% CAGR by 2024. The updated BSVI emission control standards have led to a slight increase in car prices. A reduction in the GST on used cars from 28% to 12-18% is also a welcome change.

In the past few years, a number of financial institutions and auto dealers have taken an interest in the unorganized used car market, which was largely unorganized before the epidemic. With a second hand car loan in Varanasi, you can benefit from reduced interest rates and lower prices for the car of your dreams.

As well, used car buyers are changing their perceptions about buying used cars since there are more organized lenders and players on the market. Yet there are still some myths that persist regarding purchasing second-hand cars. To debunk some of the most common myths surrounding used-car loans, we present the following:

Myth 1: Banks are the only lenders that offer used car loans

You may think that getting a bank loan to purchase a second-hand car is a hassle-free and easy process. Although NBFCs offer very specialized loan structures for pre-owned cars, the fact remains that they are available. Comparing banks, you'll find that this company can provide a Second-hand cars loan Varanasi with a competitive interest rate and a very high approval rate. The statistics suggest that NBFCs control more than 50% of the secondary used-car market.

Myth 2: Finance companies only operate in urban areas:

There is a long-held belief that finance companies/banks are only willing to give used-car loans in urban areas due to lack of reach. NBFCs, on the other hand, are expanding aggressively in rural areas and targeting tier-2 and tier-3 markets. Many reports state that NBFCs are bridging the rural banking gap and overtaking the banks in rural areas. Especially in smaller cities, they make the process of shopping for used cars easy and hassle-free.

 Myth 3: Finance companies do not provide value-added services:

When it comes to getting a Used car Loan in Varanasi, most people believe that only banks offer value-added services while NBFCs don't. The majority of NBFCs, contrary to popular belief, offer seamless digital experiences as well as value-added services such as insurance and credit cards. Used car buyers are increasingly turning to NBFCs for value-added services like these, making them a preferred choice.

Myth 4: Only one person may apply for the used car loan:

There is no myth more popular than this one. Many people do not qualify to get a pre-owned auto loan for the car of their dreams due to budget constraints. Nevertheless, you can always apply for a joint used-car loan with your spouse or another family member. Adding them to the application can make it possible to split the loan EMI obligations. It will enable you to get better deals and make your dream of owning your favorite car a reality.