Car is a product everyone uses on a daily basis. From the average middle class family to higher class everyone has a car. Very few people buy a car with a down payment. Most people opt for a loan simply because a car loan being a secured one has a lower rate of interest and easier to avail. Hence, most people opt for a loan while buying a car.
Used Car Industry
Easy availability of finance and increasing income level of the middle class has made used car loans very popular. The new car industry has been booming and so is the used car industry. The used car industry is also very strong in India. Pre-used cars are used mainly for commercial purposes and primarily bought in semi-urban or rural areas where budget becomes a constraint. Thus, the second hand car industry in India is also flourishing!
If a person opts for a loan while buying a second hand car, he needs to avail a Used Car Loan. This is definitely different from a new car loan, but not starkly different as they both refer to car loans, which are basically secured in nature.
