Car Financing Gains Momentum as 59% of Used- Car Buyers in Pune Opt for Car Loans

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Pune, 11th June 2024: In a landmark development for Pune, CARS24, India’s leading AutoTech company, has celebrated a major milestone through its financial arm, CARS24 Financial Services Pvt Ltd (CFSPL). Since its launch in the city, CFSPL has disbursed car loans exceeding INR 336 crore. The company has also achieved a remarkable 30% year-on-year growth in car financing in Pune. This growth indicates a rising interest in car financing within this dynamic centre, reflecting a shift in perception where car ownership is now seen as a necessity rather than a luxury. CFSPL is ensuring that buying a car remains affordable, thus making car ownership more accessible for Pune’s residents.

Pune’s Evolving Transportation Preferences
Pune is witnessing a change in transportation preferences. The city’s growing infrastructure and economic development have catalysed demand for personal vehicles. A heightened demand for personal transportation has boosted the demand for flexible financing solutions.

A notable trend is the growing preference for car financing among youth and millennials. The average age of individuals opting for car financing is 34 years, reflecting a growing inclination towards personal vehicle ownership among young professionals and families. This demographic increasingly views cars as essential and safer means of travel, crucial for maintaining independence and efficiency in their daily commutes. Ambitious young consumers are reshaping the car market as they prioritise convenience, safety, and efficiency. They prefer purchasing pre-owned vehicles and view financing as a smarter, more accessible way to achieve car ownership. This reflects the aspirations of a young, dynamic generation striving for greater autonomy and an improved way of travelling as they continue to navigate the roads of Pune.

Popular Cars Financed in Pune
In Pune, the demand for reliable and practical vehicles is reflected in the popularity of models such as the Wagon-R, Swift and Hyundai-GRAND I10. These cars are favoured for their affordability, efficiency, and comprehensive features.

Swift stands out with its sporty design and responsive handling, appealing particularly to younger demographics and first-time car buyers. Meanwhile, the HYUNDAI-GRAND I10 is recognized for its compact design and advanced connectivity features, making it a top choice for urban commuters. Customers in Pune are moving towards hatchbacks because of their affordability, fuel efficiency, and compact design, making them ideal for navigating Pune’s congested roads and tight parking spaces. Their versatility, ample cargo space, and advanced technological features appeal to a wide range of buyers, particularly young professionals and families. Their low maintenance costs and good resale value add to their attractiveness. These benefits collectively make hatchbacks the go-to choice for many in Pune, balancing cost-effectiveness with the convenience of personal vehicle ownership.

Gajendra Jangid, Co Founder at CARS24, stated “The strong preference for car financing in Pune underscores a broader trend towards flexible and accessible car ownership. This shift reflects an evolving consumer behaviour that prioritises convenience and affordability in acquiring personal vehicles. Our focus is on enabling a seamless, reliable, and cost-effective car ownership journey for all “customers, supporting this transformation in the automotive landscape.”

59% car buyers in Pune prefer getting their cars financed
CARS24 offers a variety of financing options designed to meet diverse needs, making car ownership more accessible and attainable. Featuring an average EMI of INR 12,000 over 60 months, and an average interest rate of 15.2%.

59% of people in Pune opt for financing their cars, reflecting the city’s growing aspiration of personal vehicle ownership. Nationwide 63% of people opt to get their cars financed. With versatile repayment options, CARS24 empowers buyers to tailor their financing according to their financial circumstances. Most loans are processed within a couple of hours, simplifying the car-buying process significantly. Nationwide, CARS24 receives around 620 loan applications daily.

By offering flexible repayment options and ensuring most loans are processed within a few hours, CARS24 significantly simplifies the car-buying process.

With a presence in over 180 cities across India, CARS24 is at the forefront of transforming car ownership in India. This commitment to innovation and customer-centric solutions underscores CARS24’s pivotal role in shaping the future of personal mobility in India.