13 June 2023: CARS24, has marked a significant milestone through its financial arm, CARS24 Financial Services Pvt Ltd (CFSPL). With an impressive track record and extraordinary growth, CFSPL has achieved an astounding 100 percent year on year increase in loan disbursements and has surpassed the remarkable milestone of INR 2,000 Crore since inception. This exceptional growth, coupled with sustained net profitability, has not only transformed the dreams of countless car enthusiasts into reality but has also solidified CARS24's position as an unrivalled leader in the industry.
Setting itself apart as the pioneer in the pre-owned car industry, CARS24 obtained an NBFC licence in 2019, cementing its position as a full stack solution for pre-owned car buyers. The company is committed to providing an exceptional experience to the next generation of pre-owned car buyers by streamlining the buyer and borrower journey. By offering end-to-end support and hassle-free financing options for all cars, CARS24 empowers buyers to choose financing offers that perfectly align with their budget and individual needs. This customer-centric approach has resulted in a remarkable product-market fit, with the company delivering straightforward yet powerful financing solutions.
As we celebrate this significant milestone, we have uncovered fascinating insights into India's car financing landscape that will have a profound impact on the industry's future. The trends observed in used car financing mirror those of new car financing, highlighting the evolving preferences and behaviours of car buyers.
3 out of 5 Indians prefer getting their cars financed
The car financing landscape in India is witnessing a notable trend with an increasing number of young individuals opting for car loans. 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. This demographic shift is accompanied by a growing preference for the convenience and flexibility offered by car financing options.
With an average EMI ranging from ₹10,500 to ₹11,500 per month with a tenure of up to 72 months, car financing has become a viable solution for many. The data reveals that every 3 in 5 customers choose to finance their cars, highlighting the popularity of this financial approach.
In today's fast-paced world, the car financing landscape has undergone a remarkable transformation with a strong focus on digitization. This shift has resulted in a streamlined and efficient car financing process, allowing customers to obtain loan sanctions within an astonishingly short time frame of as low as 2 hours. 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. With the advent of digitization, the car financing industry has successfully adapted to the evolving needs of today's generation, making the dream of owning a car more attainable and fulfilling for tech-savvy youth.
Talking about the new milestone, CARS24 Co-founder & CFO, Ruchit Agarwal said "Our ultimate objective is to ensure that car ownership becomes accessible and convenient for everyone, and this milestone is a testament to our unwavering dedication to bringing this vision to life. We remain steadfast in our commitment to providing an exceptional and customer-centric experience, empowering individuals to fulfil their car ownership dreams with ease and satisfaction."
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