CHENNAI: Non-banking financial companies (NBFCs) are witnessing a surge in demand for used vehicle financing covid, Pandemic-induced preference for households to own second and third cars, upgrades by two-wheeler owners to older cars and lower cost of used vehicles are some of the primary reasons for the rise in demand for used vehicles. NBFCs offering loans for used vehicles are upbeat about the rapid growth in the current financial year.
Cholamandalam Investments and Finance (Chola), one of the largest players in the used vehicle financing segment, has recorded loans for used cars at the top of the list in vehicle finance for three consecutive years since FY20. While the share of used vehicle finance stood at 27% in FY21 and FY22, a growth of 1% over FY20, it was just 13% in FY19. In the fourth quarter of fiscal 2012 alone, the number of used vehicles financed increased to 57,000, a jump of 17,000 vehicles from the year-ago period.
Sundaram Finance The segment is expected to grow at a steady rate of 10-15% annually post-Covid. Tata Capital Financial Services ,TCFSL) has said that the used car loan market has tremendous growth potential especially in Tier-II and -3 cities.
Rajeev Lochan, MD, Sundaram Finance, said, “Looking ahead, we see the used vehicle business growing very rapidly for us. We aim to achieve 30% of our total disbursements from the used vehicles segment over the next three years. ,
Cholamandalam Investments and Finance (Chola), one of the largest players in the used vehicle financing segment, has recorded loans for used cars at the top of the list in vehicle finance for three consecutive years since FY20. While the share of used vehicle finance stood at 27% in FY21 and FY22, a growth of 1% over FY20, it was just 13% in FY19. In the fourth quarter of fiscal 2012 alone, the number of used vehicles financed increased to 57,000, a jump of 17,000 vehicles from the year-ago period.
Sundaram Finance The segment is expected to grow at a steady rate of 10-15% annually post-Covid. Tata Capital Financial Services ,TCFSL) has said that the used car loan market has tremendous growth potential especially in Tier-II and -3 cities.
Rajeev Lochan, MD, Sundaram Finance, said, “Looking ahead, we see the used vehicle business growing very rapidly for us. We aim to achieve 30% of our total disbursements from the used vehicles segment over the next three years. ,