If you are preparing to buy a second hand car in the festive season, then you are soon going to get more than one option. In fact, millions of people have lost jobs due to the Corona crisis. At the same time, many times more people are facing salary cuts. In such a situation, it is feared that a large number of people will default in getting a car loan in the coming days. This will increase the number of second hand cars in the market due to the seizure action of banks.
Banks and Non-Banking Financial Companies (NBSFC) can resume the process of confiscation of cars taken on loan where the repair is not taking place. The number of such vehicles in the second-hand car market is one-third but, in the last six months, there has been a decrease in supply from this side. Financial institutions could not take steps against the defaulters due to the Moratorium.
61% of customers preparing to buy old car
According to the report by OLX, there is a good market for used cars in rural areas and small towns. About 70 percent of the demand and supply of used cars is in non-metros. According to the survey conducted by the company, 61 percent of the customers are planning to buy a second car in the next three to six months. According to OLX India, demand for second-hand cars on its platform was 133% higher in August than in February. At the same time, growth was sluggish on the supply front. Maharashtra, Delhi, Kerala, Tamil Nadu, and Karnataka come on top in terms of second-hand luxury car sales.
The financier will be the owner of the car
The Supreme Court has recently said an important ruling that the owner of the vehicle will remain the financier until the loan installments are completed. This financier may also take possession of the vehicle if it defaults in installments. There is no crime in it. A three-judge bench headed by Justice DY Chandrachud accepted the financier’s appeal giving this arrangement and quashed the penalty imposed on him by the National Consumer Commission. The impact of this decision can be seen in the coming days. Financiers may pick up Vanah if they do not pay the installments due to the Corona crisis.
Loan facility also available
If you can take a loan from the bank to buy an old car. Different banks have different loan terms for buying second hand cars. Some banks do not offer loans for cars older than three years. In such a situation, first you have to find out from the bank what their rules are. Some banks demand 20-30% down payment for this. The application for the loan can be made both online and offline. For online one has to go to the bank’s website. At the same time, one has to go to the bank branch for offline.
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