Kerala, is the landscape where lush greenery meets bustling urban life. If you’re eyeing the roads of this beautiful state and are thinking of owning a second-hand car, you’re in the right place. This comprehensive guide is your key to navigating the intricacies of getting a used car loan in Kerala in 2023. From understanding the local dynamics to making savvy financial decisions, let’s embark on a journey that ensures you drive home with both a fantastic deal and peace of mind.
Understanding The Kerala Car Market In 2023
In 2023, Kerala’s car market continues to be diverse, with a blend of urban and rural demands. Urbanization and affordability are the reasons for an increase in demand for second-hand cars. The people of Kerala often favor fuel-efficient and compact cars, given the state’s narrow roads and emphasis on eco-friendliness. Understanding these local preferences is crucial as you venture into the realm of second-hand car loans.
Reasons For Growth Of Second Hand Car Market In Kerala
Post-COVID-19 pandemic, the demand for cars increased in India. The demand for smaller cars increased due to the affordability factor. Due to financial factors, buying a new car is not preferable by most people which has led to an increase in sales of second-hand cars. The second-hand car market size was larger compared to the new car market size in 2020. As per statistics, the sales figure for second-hand cars is going to touch 70 lakhs by the year 2026. Here are some factors that are responsible for the rise of the second-hand car market:
- Increase in demand for personal mobility: Due to the COVID-19 global pandemic, the majority of the population entirely changed the way they commute. To avoid public transport and to uplift the social distancing norms due to the spread of the coronavirus, the demand for public transport increased. The population that could not afford new cars invested their money into buying a second-hand car.
- First-time car buyers: The need for private transportation, makes the majority of the population want a car. The second-hand car market saw an increase in sales as people opted to choose a second-hand car over a brand-new car for their first car.
- Establishment of an organized second-hand car market: the pre-owned car market was quite unorganized when compared to today’s robust and organized market. In recent times, there have been certified second-hand car dealers in the market that are experts in selling well-maintained second-hand cars.
- Second-hand car loans: Banks and financial institutions have started offering complete financing for purchasing a pre-owned car which has made it easier and even more affordable for people to own a car in India.
Things To Consider While Opting For A Second-Hand Car Loan in Kerala
The market for second-hand car loans in Kerala has grown drastically along with the rise in demand for used vehicles. Obtaining a used car has become simpler with the availability of second-hand car loans from numerous banking organizations. But before choosing to go with a used car loan, there are a few things you should consider. The following are the contributing factors:
- Consider your credit score: Being aware of your credit score is vital as it helps in determining the eligibility for the loan and the interest rate. If you are aware of your credit score you can take the essential steps to avoid loan application rejection.
- Get your car valued: Getting your car valued is important to avoid overpaying. Factors like the age of the car, mileage, and condition of various parts like engines and gearboxes are taken into consideration during valuation.
- Knowing the correct loan amount: The second-hand car buyer should be clear about the loan amount that has to be borrowed. The amount should be properly calculated according to his/her financial needs as it determines the monthly EMIs the buyer will have to pay.
- Compare various loan lenders: You must choose the right loan lender. You must compare various second-hand car loans from various providers to find the one that aligns with your needs. Other factors including interest rate should be considered before deciding to get the best used car loan in Kerala.
- Interest rate: The interest rates for second-hand cars in Kerala will vary from one lender to the other. The rates usually range between 14% to 20% per year on a reducing interest basis. Factors like the age and type of car are considered while determining interest rates.
- Opting for a shorter tenure: Choosing a short tenure for your second-hand car loan can result in higher monthly EMIs but it is beneficial for you in the longer run. A shorter tenure decreases the total interest one has to pay and also encourages lenders to charge a lower interest rate.
- Keep necessary documents handy: Documents like your PAN card, Aadhar card, bank statements, salary slips, and insurance copy must be kept handy as lenders require these documents to process the loan. If one fails to produce these documents, the loan application will be rejected.
As we conclude this comprehensive guide to getting a used car loan in Kerala in 2023, remember that knowledge is your greatest asset. Understanding the local car market and the various prerequisites will help you in making a safe and sound decision. Happy driving! Visit Finnable.com and allow us to guide you through the process of securing a second-hand car loan!