Selling cars was a challenge during the olden days [1900 period] until an extra-ordinary salesman & entrepreneur William Billy Durant, founder of General Motors introduced the concept of “Auto-mobile Financing”. Auto-mobile loans were not very common during that period in India & were only restricted to certain standard of society. All that has changed post the liberalization era.
Change in Indian mindset
Consumer mindset of 1980’s was that of ‘caution’. People were only interested in government paying jobs since they were secure even though many of them were low paying!!! Also, in terms of saving; buying a house was only a priority. Owing a vehicle was definitely a distant dream.
Banking sector was also impacted because of this mindset. During the 1980’s, percentage of vehicle loans were minuscule compared to the asset size of the bank.
Emergence of automobile finance
With the increase of foreign investment in India, it impacted many sectors including automobile. This not only impacted the buying capacity of the consumers but also impacted the automobile job sector. Special focus was on the passengers cars & multi-utility vehicle since it impacted the overall economic conditions of India.
Changing consumer mindset
With the changes in the overall landscape in economy & with the Privatization wave during the 1990’s; many things changed for the country. There was an increase in the “overall disposable income” of the Indians & now the consumers were less risk-averse. Now the consumers had the additional help of “loans” whether they wanted to purchase their dream home or buy a car!!!
In order to lure the growing demand of cars among consumers, banks also came up with various types of loans. This definitely helped them to manage their finances in much better way.
Some of the various categories of affordable home-loans are below:
- Margin Money Scheme
- Advanced Equated Monthly Instalment Scheme
- Security Deposit Scheme
- Hire Purchase Scheme
- Lease Financing Scheme
[Source – SurfIndia]
Game Changer – The internet Era
With the rise of mobile phones in India & the data-rates becoming lesser day by day, consumers made Internet the primary medium for only buying via e-commerce websites but also for securing affordable car-loans. Internet not only provided a medium for the young-trendy consumers to compare prices of cars but also helped them to get car loans at lesser interest rate.
When we talk of internet, we cannot leave behind Bangalore. If you are looking for automobile loan in Bangalore, there are plethora of options that are available with them. Also, considering the traffic situation in Bangalore, there are many people interested in buying cars since it provides them more convenience. Interest rates become very important since many terms & conditions of banks & financial institutions are cryptic, so better to have a look at the car loan interest rate in Bangalore
When it comes to car financing, we have already looked at couple of useful options that might help our readers take an intelligent step in buying their “dream car” but insurance of the car also becomes an integral part of car.
Car Insurance
Car Insurance or motor insurance covers for losses that you might incur if your car gets damaged or stolen. The premium amount of your car insurance is decided on the basis of Insured Declared Value or IDV of the vehicle.
The insurance helps to get coverage against loss/damage, theft, accident, fire & coverage against financial liability [injury/death]. Since, Bangalore is our city of focus, hence you need to properly choose car insurance in Bangalore
Conclusion
The automobile market in India is growing at a very rapid pace & with the recent “Make In India” movement, many companies are keen to setup their “manufacturing plants” in India. This is already happening & it would not only affect the country’s GDP but also prove to be a boon to the consumers & young Indians aspiring to enter the automobile industry…
