Three out of every five Indians prefer opting for car loans: CARS24

CARS24 said that rising costs of vehicles, the desire for newer models with advanced features, and the availability of attractive loan packages are encouraging Indians to go for financing

Owing to ease and accessibility, three out of every five Indians prefer getting their cars financed, according to data released by autotech company CARS24. The trend enjoys more popularity in tier 2 and 3 cities where 75 per cent of car buyers opt for financing. In tier 1 or metro cities, 60 per cent of car buyers prefer taking loans for it. 

The company said that the rising costs of vehicles, the desire for newer models with advanced features, and the availability of attractive loan packages are encouraging Indians to go for financing. 

"This accelerated timeline has gained immense popularity among modern car buyers who value speed and convenience. The ease and accessibility of car financing have become key drivers in attracting more young individuals who are seeking financial flexibility and a hassle-free car ownership experience," the company said. 

The company also said that affordable hatchback models such as Maruti Swift, Hyundai i10, and Renault Kwid were at the forefront of popular car financing choices. 

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.

The company also highlighted the rising trend of more women opting for car financing. In 2022-23, 45 per cent more women opted for car loans as compared to 2022-23.  

"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," the company said. 

The data was released on the occasion of its financial arm, CARS24 Financial Services Pvt Ltd (CFSPL), achieving a 100 per cent year-on-year increase in loan disbursements. With this, it has now surpassed the milestone of Rs 2,000 crore worth of loans, since inception.