Influence of Financing Options on Purchase Decisions in the Pre-Owned Car Market

Abstract

The proliferation of diverse financing options and increasing affordability have driven the used car market in India. This article examines the significant impact of financing on customers' purchase decisions in this area. It highlights how various financing options such as loans, leases, and installment plans impact consumer behaviour and the overall market dynamics. The study reveals significant financing-related concerns, including interest rates, loan terms, down payments, and eligibility criteria, all of which affect middle-class families' ability to purchase and acquire a vehicle. It underscores the imperative for innovative strategies to meet evolving customer demands while addressing the challenges associated with financing used vehicles, including perceived risks and regulatory complexities. The report underscores the importance of financing in facilitating vehicle ownership and fostering market growth in India's pre-owned car sector through an examination of these interconnected aspects.