Market Trends of Car Loan Industry
Increasing Sales of Passenger Cars in Asia
The increasing sales of passenger cars in Asia have a direct impact on the car loan market in the region. Europe accounts for 20% of global passenger car sales, coming third after Asia (52%) and the Americas (24%). Chinese-brand passenger car sales surged 21.2 percent year on year in the first three quarters of 2023 to nearly 9.9 million units. India has beaten Japan to become the third largest vehicle market in 2022 after China and the US, selling more than 4.25 million vehicles, including passenger and commercial. The increasing sales of passenger cars in Asia are leading to intensified competition among financial institutions, including banks and specialized car loan providers. To capture a share of the growing market, these institutions are offering competitive interest rates, flexible repayment terms, and attractive loan packages. This competition benefits consumers by providing them with a range of options and favorable loan terms.
Increase in Sales of Used Cars
The increasing sales of used vehicles are attributed to several factors. Firstly, affordability plays a significant role. Used cars are generally more budget-friendly compared to brand-new ones, allowing people to fulfill their transportation needs without breaking the bank. Additionally, the wide range of options available in the used car market allows buyers to choose from various makes, models, and years of production. Another advantage of buying a used vehicle is the lower depreciation costs. New cars tend to lose a significant portion of their value in the first few years, whereas used cars have already undergone the majority of this depreciation. This means that buyers can potentially get more value for their money when purchasing a used vehicle. Furthermore, the growth of online marketplaces and dedicated platforms has made it easier than ever to buy and sell used vehicles in India. These platforms provide a convenient way for sellers to reach a larger audience and for buyers to browse through a wide selection of cars from the comfort of their own homes.
