People are spending a lot on used cars after the pandemic
Hyderabad: In just two years, the Covid pandemic has radically changed people’s behavior. One of these changes manifests in people who can afford to spend. People, it seems, are no longer eager to save money for unexpected rainy days; they would rather spend it today. While property developers are signaling buyers’ preference for larger apartments, luxury car makers see no drop in sales despite all the vagaries of the pandemic. The trend could also be seen in the used car market, suggesting that the urge to spend is centuries old.
“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. This shows that the demand for bigger cars has increased and people are ready to spend more. This trend has been more visible over the past 12 months,” said Namit Jain, co-founder and CEO of Ruppy, a specialized fintech platform focused on the used car market.
Ruppy is a fintech platform from Cardekho, an automotive technology company focused on selling used cars.
“After the pandemic, people prefer to have their own personal mobility for their safety,” observed Namit Jain.
He said Ruppy, which was launched as CarDekho Financial Services in 2015, lends more than Rs 400 crore per month and plans to increase it to Rs 700 crore per month by the end of the year.
The company, which is the second largest lender in the used car market by value and operates in 80 cities and towns nationwide, plans to automate the used car loan process to provide an exceptional experience to our clients. “Soon we plan to install our QR codes at various used car dealerships. After choosing their vehicle, they can scan the QR code and get the loan within 24 hours,” Namit Jain said.
Besides Ruppy’s own NBFC, he said the platform hosts 20 other lenders, which the buyer can choose from for financing the vehicle. “In the future, we plan to start co-lending with other lenders on our platform. When we put our skin on, other lenders might trust us more.
The company expects growth of more than 80% per year compared to the 15% growth expected in the used car market.