Why is an average Indian fascinated with car?

Published: 23rd June 2016 04:28 PM  |   Last Updated: 23rd June 2016 04:28 PM   |  A+A-

The home and cars are probably the only 2 materialistic thing that occupy a place higher than gold in the hearts of Indian population. People here grow up dreaming that they need to get their own shelter someday and buy car they can call theirs. While, the dream of shelter at most places in India still remains elusive, buying a car has become extremely easy. All thanks to the concept of Used Cars!

The new trend of used vehicle has gathered momentum especially in tier 1 and tier 2 cities. Let’s now have a look at prominent reasons as to why used cars in Mumbai has become the buzz word –

  • Ever increasing population – The rising population in metros of Mumbai, Delhi and Chennai and acute dearth of supporting public transportation in tier 2 cities has meant that more and more people are now looking to buy their own car. Though the cost of new cars remains high, the used cars come at much cheaper rate and are easily available. Their market is gaining traction across India.
  • 100 plus quality checks – Gone are the days when used vehicle would come with their own risks. Nowadays, people can easily get certified used cars in Mumbai and other cities through multiple dealers. These dealers would check and certify cars across several parameters that cover the following checkpoints:
  • Windshield durability
  • Tyres longevity
  • Clutch, break and accelerator functioning
  • Seat set up
  • Basic interior
  • Engine checkup, etc.

These quality checks give the sense of relief to both buyer as well as seller and have gone a long way in pushing up this market. Several dealers also give 12 to 24 months warranty on payment of small fees. The warranty ensures support in case of emergency.

  • Easy financing – The other important factor that has played a key role in setting up an altogether separate market for used cars in India is easier financing options. There are several banks and financial entities that give loans up to 90 to 95% of the cost of car at an average rate of 12 to 18% per annum. The availability of easy finance, flexible equated monthly installments, shorter loan durations and very little paper work means that buyer can now buy used cars with only few thousand rupees. Buying a second hand vehicle through finance helps in more than 1 way. This is because financing entity does the complete car checkup after which they arrive at “true value of car”. This ensures that buyer has complete freedom of thought when executing the deal and can do so with noburden.
  • Insurance – The buyers also do not need to worry extensively about any unforeseen damage to the car. All of these stuffs are covered by insurance firms. Nevertheless, they should be mindful of the fact, to not claim damages for every minute scratch as this would ultimately prove costly if something fatal happens to the car.
  • Great source of learning – Used vehicles and cars are also great source of learning. While, the new cars are a bit skidding to begin with, there is no such issue with used cars. Additionally, it’s a well-documented belief that the car is best to drive only after it runs for 10 to 15,000 kilometers. By that logic it is best to opt for used car in case someone is looking out for his/her first vehicle.
  • Re-sale vehicle – With rising income levels and passion for cars growing across people of all ages, the resale market is gaining momentum. A well maintained car on average has 3 owners. Hence, buyers of used car do not have to worry about its resale value just in case they wish to liquidate it in few years’ time.

The concept of used cars in India has been a blessing for millions of people in this country who had to wait endlessly for that elusive car – they can call theirs.

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