Possible Post-Pandemic Necessities May Lead a Hike in the Car Finance Industry

  • 26 Dec 2021 10:30
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Possible Post-Pandemic Necessities May Lead a Hike in the Car Finance Industry

Owing a car has become a necessity in this era of the unprecedented pandemic. Covid-19 has wreaked mayhems, and still causing huge losses. However, people all over the world are now learning ways to tackle the crisis.

Following the most basic mantra of social distancing leads to maintain it everywhere, including traveling. And, this is one of the most elementary reasons, that most of the crowd is marching to buy cars.

This step would not only assist the beings to maintain social distancing and being safe but would also suppress the wave of closure confronted by the automotive sector, in recent times. In addition, the major role would still be played by the car finance sector.

Car finance has helped millions to buy their dream car before the pandemic. However, since the need has now changed, financing companies are looking forward to providing better services to their customers in the time of need. Availing car finance provides support for the owner to invest in the car with monthly installments and therefore eradicates the need of having precise cash. Furthermore, owing to the safety and precautionary measure the demand for cars have been increased in recent times. On the other hand, the avoidance of public transportation is another factor that has driven the demand for the owing car. Moreover, these factors have fueled the demand for car finance as well.

The key market players are following different strategies to attract customers. On the other hand, even the market players in the automobile sector are participating in new and latest schemes. Moreover, the market is prospering with new car financing scheme and increasing demand. 

Recently, one of the leading automobile players, Honda Cars India LTD (HCIL), has launched a new car finance scheme  to augment the sale in the coming days. As published in the news, the carmaker has combined with Kotak Mahindra to provide finance options. The program offers the customers to take advantage of low-interest-rate schemes for five years coupled with low EMI for the first three months.

The company introduced one more scheme in association with HDFC which offers the customers to avail advantages of an exclusive combination of Balloon EMI and step-up EMI at the end of the contract.

The adoption of cars is anticipated to hike during as well as post-pandemic, this would be the major factor of growth for the finance sector. According to a report published by Allied Market Research, the global car finance market is anticipated to achieve significant growth in the forecast period. The rise in the global average price of vehicles is another major cause of market growth. Furthermore, the growth in vehicle sales in developing nations augments market growth. Moreover, with the latest and affordable schemes and declining automotive loan rates, the market is estimated to prospect in the coming future.

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Charles Petzold By, Charles Petzold
Charles Petzold is the developer of the Sublime site. He is a programmer with a strong interest in cutting-edge technology. He addresses each article with excitement, full of love for his passionate customers.
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