Financiers buy into India's used car business amid uptick in demand

An expansion of demand driven by economic uncertainty has accelerated the plans of organised players to tie up with banks and NBFCs

Buying a pre-owned car on credit has gained traction in the past one year as buyers of such vehicles are finding greater comfort in engaging with organised used car channels that warrant better quality cars and hassle-free paperwork. Better asset quality has also encouraged banks and non-banking financial companies (NBFCs) to join hands with those in the organised used car space.

As a result, on an average, the penetration of finance in the used car segment has spiked to 18-20 per cent from 8-10 per cent in the past one year, said officials at organised used car firms. While that’s