New Delhi: CARS24, one of India’s AutoTech company, has marked a significant milestone through its financial arm, CARS24 Financial Services Pvt Ltd (CFSPL).

CFSPL has achieved an astounding 100 percent year on year increase in loan disbursements and has surpassed the remarkable milestone of INR 2,000 Crore since inception.

Breaking Barriers: Car Financing Trend Reaches Tier 3 Cities in India

A trend is reshaping the car ownership landscape in India. In non-metro cities, an astonishing 75 percent of Indians in Tier 2 and 3 cities are opting for the convenience of car financing, while even in bustling metro cities, 60 percent of Indians have joined the car financing movement.

This nationwide shift reflects a growing desire for financial freedom and turning car ownership dreams into reality. The financing boom extends across cities, with Tier 1 markets such as Delhi-NCR, Bengaluru, and Hyderabad and Tier 2 cities like Lucknow, Surat, and Jaipur, witnessing significant loan uptake. Even Tier 3 cities like Patiala, Alwar, and Bharuch have joined the loan frenzy, making used car ownership more accessible across India.

3 out of 5 Indians prefer getting their cars financed

The car financing landscape in India is witnessing a notable trend with an increasing number of young individuals opting for car loans. The average age of people preferring to finance their cars stands at 32 years, indicating a strong presence of working millennials, including salaried employees and young entrepreneurs. This demographic shift is accompanied by a growing preference for the convenience and flexibility offered by car financing options.

With an average EMI ranging from ₹10,500 to ₹11,500 per month with a tenure of up to 72 months, car financing has become a viable solution for many. The data reveals that every 3 in 5 customers choose to finance their cars.

Women Embrace Car Financing, Redefining the Road to Ownership

An encouraging trend in the car financing sector is the notable 45 percent increase in loans disbursed for women every year. Traditionally, car financing has been predominantly associated with male buyers, but there has been a significant shift in recent years. More women are taking charge of their financial independence and embracing car ownership through financing options.

This rise in women opting for car financing reflects the growing empowerment and economic participation of women in India. It also highlights the need for tailored financing solutions that cater to the unique preferences and requirements of women buyers. As more women join the car financing movement, it presents a tremendous opportunity for the industry to diversify its offerings and create a more inclusive and equitable car buying experience for all.

Over 60 percent of first time car buyers prefer financing, it’s more convenient they said!

In the ever-evolving landscape of car ownership, another intriguing trend has emerged among first-time buyers in India – the preference for car financing. Aspiring car owners who are venturing into the realm of car ownership for the first time are increasingly opting for the convenience and flexibility of financing options. In fact, according to CFSPL’s data, over 60 percent of first time car buyers have financed their cars in the last one year.

This shift can be attributed to several factors, including the rising costs of vehicles, the desire for newer models with advanced features, and the availability of attractive loan packages tailored to suit the needs of first-time buyers.

Hatchback Models: Swift, i10, and Kwid Lead the Way in Popular Car Financing Choices

Affordable hatchback models such as Maruti Swift, Hyundai i10, and Renault Kwid have secured their place at the forefront of popular car financing choices. These vehicles have captured the attention and preference of car buyers looking for a cost-effective yet reliable transportation solution. These compact vehicles offer a cost-effective solution for individuals seeking car ownership, with lower price points compared to larger car segments.

The availability of car financing options allows buyers to spread the cost of a hatchback over time, making it a more manageable financial commitment. Additionally, hatchbacks are known for their fuel efficiency, making them a practical choice for daily commuting and reducing overall ownership costs. With their combination of affordability and practicality, hatchbacks have become a top choice for individuals seeking car financing solutions.

The March of Loans: India’s Car Financing Hits a Historic High in 2023

March 2023 marked a significant milestone in India’s car financing landscape, with the highest loan disbursement recorded in a single month. According to CFSPL, Customers enthusiastically availed loans amounting to an impressive INR 150 plus crore during this period, indicating a substantial surge in car financing. This trend aligns with previous years’ data, where March consistently witnesses the highest number of cars being financed, showcasing a recurring pattern.

CARS24 Co-founder & CFO, Ruchit Agarwal said “Our ultimate objective is to ensure that car ownership becomes accessible and convenient for everyone, and this milestone is a testament to our unwavering dedication to bringing this vision to life. We remain steadfast in our commitment to providing an exceptional and customer-centric experience, empowering individuals to fulfil their car ownership dreams with ease and satisfaction.”