People spend big on used cars post-pandemic
While real estate developers report buyers’ preference for larger flats, luxury car makers see no dent in sales despite the pandemic
Hyderabad: In just two years, the Covid pandemic has changed people’s behaviour drastically. One of those changes is being manifested by people, who can afford to spend. People, it appears, are no longer keen on saving money for the unforeseen rainy day; rather they would spend it today. While real estate developers report buyers’ preference for larger flats, luxury car makers see no dent in sales despite all vagaries of the pandemic. The trend could also be seen in the pre-owned car market, hinting that the urge to spend is secular.
“The average loan value has increased from Rs 3.5 lakh in the pre-pandemic era to Rs 4.5 lakh in the post-pandemic period. It shows that demand for bigger cars has increased and people are ready to spend more. This trend has been more visible in the last 12 months,” said Namit Jain, co-founder and CEO, of Rupyy, a specialised fintech platform focused on the used car market.
Rupyy is a fintech platform of Cardekho, an auto-tech company focused on used car sales.
“Post-pandemic, people are preferring to have their own personal mobility for their safety,” observed Namit Jain.
He said Rupyy, which was started as CarDekho Financial Services in 2015, lends over Rs 400 crore a month and plans to increase it to Rs 700 crore a month by the yearend.
The company, which is the second largest lender in the used car market by value and operates in 80 cities and towns in the country, plans to automate the used car lending process to give a great experience to our customers. “Soon, we plan to instal our QR codes at different used car dealers. After choosing their vehicle, they can scan the QR code and get the loan within 24 hours,” Namit Jain said.
Apart from Rupyy’s own NBFC, he said the platform hosts 20 other lenders, among whom the buyer can choose for vehicle finance. “In future, we are planning to start co-lending along with other lenders on our platform. When we put our skin, other lenders could trust us more.”
The company expects to grow over 80 per cent a year compared to the 15 per cent growth expected in the used car market.