Driving Change: 68% of Used-Car Buyers in Ahmedabad Opt for Car Financing
Ahmedabad, July 26, 2024: Reflecting a growing demand for accessible vehicle ownership, CARS24, India’s leading autotech company, has achieved a significant milestone through its financial arm, CARS24 Financial Services Pvt Ltd (CFSPL). Since entering the Ahmedabad market, CFSPL has disbursed loans totaling over INR 85 crores, demonstrating its commitment to supporting car buyers in the region.
The past year has been especially favourable for car buyers in Ahmedabad, with more people being able to afford cars due to the availability of more financing options in the used car market. CFSPL has recorded an impressive 80% year-on-year growth in loan disbursements, highlighting the increasing trust of Ahmedabad’s residents on CARS24 for their car-related needs. This trend signifies a shift towards car financing in this major economic hub, making vehicle ownership more accessible and feasible for its residents.
Salaried Professionals Drive Used Car Financing in Ahmedabad
The perception of car ownership in Ahmedabad has evolved from a luxury to a necessity, driven by an increase in disposable income and a growing demand for safer, more convenient transport options. The city’s expansion, growing infrastructure and development have further catalysed the need for personal vehicles.
Nationwide, during the AMJ quarter (Q2), 48.5% of car buyers were salaried professionals, indicating a significant trend towards car financing. However, in Ahmedabad, 52% of those opting for loans are salaried employees, with the average age of individuals seeking car financing being 35 years. This reflects an increasing inclination towards personal vehicle ownership among young working professionals.
These demographics increasingly view cars as essential and safer means of travel, crucial for maintaining independence and efficiency in their daily commutes. Salaried professionals, in particular, are more open to financing options to better manage their expenses.
This trend underscores a growing awareness of the benefits of financing, such as the ability to maintain liquidity, access better vehicles, and leverage favourable loan terms. Consequently, more individuals are choosing financing as a strategic tool to enhance their overall financial planning while achieving their transportation goals.
Gajendra Jangid, Co-Founder at CARS24, commented, “The dynamic economy of Gujarat, especially in cities like Ahmedabad, is driving a growing demand for car financing.
As more people seek convenient and affordable ways to own personal vehicles, we are committed to supporting this trend with flexible and accessible financing options. Our goal is to make car ownership more attainable, ensuring a seamless, reliable, and cost-effective experience for our customers. By aligning with the evolving preferences of consumers, we aim to facilitate a more convenient and affordable path to car ownership in this rapidly developing region.”
Top Financed Cars in Ahmedabad
In Ahmedabad the demand for reliable and practical cars is reflected in the popularity of models such as MARUTI SUZUKI-BALENO, HYUNDAI-GRAND I10, HYUNDAI-I10 and RENAULT KWID.
Baleno 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.
Maruti Remains a Top Choice in Gujarat’s Used Car Market
Maruti’s prominence extends well beyond new car sales, significantly impacting the used car market in Gujarat. In Ahmedabad and throughout the state, customers gravitate towards used Maruti hatchback models like the Swift, Baleno, and Alto. These vehicles are particularly popular for their affordability, practicality, fuel efficiency, and compact design, making them ideal for a diverse consumer base. Maruti’s enduring reputation for reliability, coupled with low maintenance costs and the easy availability of spare parts, makes its cars a top choice among budget-conscious buyers.
SUV’s gaining popularity but Hatchback still the most bought
Customers in Ahmedabad are moving towards hatchbacks because of their affordability, fuel efficiency, and compact design, making them ideal for navigating 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, balancing cost-effectiveness with the convenience of personal vehicle ownership.
Additionally, our latest data reveals a compelling trend in vehicle preferences across the nation. Although hatchbacks remain the top choice for the majority of consumers, commanding 60% of the market, there’s a noticeable shift towards SUVs. Presently, while sedans hold 21% of the market share, SUVs are not far behind at 19%, indicating a growing appetite for more robust and spacious vehicles.
Moreover, today’s car buyers are not just captivated by shiny exteriors; they are increasingly prioritising strength, safety, and reliability in their vehicles. This shift signifies a deeper understanding of the importance of long-term value and peace of mind. While fuel efficiency used to be a major deciding factor, it has now taken a backseat as buyers prefer sturdier, safer cars—even with petrol prices at INR 100 per litre and diesel at INR 90 per litre.
Quality and build are now more critical than ever, with 78% of Indian car buyers prioritising safety features such as airbags, ABS, EBD, and ESC. This trend indicates that consumers are looking beyond superficial aesthetics, focusing instead on the structural integrity and safety of their vehicles.
68% of Car buyers prefer getting their cars financed
68% of car buyers prefer getting their cars financed, indicating a significant trend towards making vehicle ownership more manageable and affordable. In Ahmedabad, the average EMI is INR 11,000 over 62 months, with an interest rate of 15%. This preference for financing reflects a broader shift towards flexible payment options that cater to a variety of financial situations.
This trend is also notable among women, who now account for 20% of car loan recipients nationwide. Women are securing 10% higher loan amounts than men, reflecting their growing economic empowerment and confidence in financial management.
Women are also getting their loans approved faster and consistently paying their EMIs on time, underscoring their increasing role in reshaping societal norms in India and their desire for independent mobility. This shift highlights a broader societal change towards gender equality in financial independence and decision-making.
With a strong presence in over 100 cities across India, CARS24 continues to redefine the automotive sales and ownership landscape. By adapting to changing consumer demands and integrating cutting-edge technology, CARS24 is driving the future of the AutoTech industry, firmly establishing itself as a leader in this transformative era.
