Used-car loan size rise in pandemic years

Hyderabad: The Covid pandemic has changed buyer behaviour; people, it appears, are no longer keen on saving money for the unforeseen rainy day, rather they would spend it today. From the increasing buyer preference for large apartments and luxury cars, the trend is percolating down even to 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 fintech platform focused on the used car market and arm of Cardekho.

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 year-end.