India's leading auto portal CarDekho.com has launched Digital Loan Platform for Used Car Dealers to provide hassle-free loan experience to their customers. A potential car buyer can simply ask their dealer for loan offers on any pre-inspected car and with a few click partner dealers can check their eligibility on the spot with multiple banking partners.
They can also start the loan application process in seconds by uploading their KYC and basic documents on the platform.
Every year more than three million used cars are sold in India. However, finance penetration on these transactions remains low due to limited process innovation in this space. Lenders need to assess quality of the underlying car, along with the creditworthiness of a buyer and manage the title transfer process.
This makes the entire used car loan process cumbersome for both customers and dealers. Naturally, dealers often end up discouraging loans to their customers to encourage faster inventory turnover on their used car stock.
CarDekho.com has partnered with leading banks, including HDFC Bank, Axis, Tata Capital, Mahindra Finance etc, to promote penetration through digital innovation. The company has developed deep tech integrations with these banks to generate instant and customized EMI quotes and enable instant applications.
Through its proprietary tech systems the company plans to cut down loan processing time to 72 hours as compared to average 10-15 days currently. Its CarDekho.com Trustmark certification report ensures assessment of car quality, and thus avoiding post processing delays.
"It is a hassle for a used car buyer to apply for a loan due to the lack of clarity on loan amount, higher rates of interest and delays in processing time. Right now, 70 percent of new car buyers opt for a loan while only under 15 percent of used car buyers end up financing their car. With our new solution, we plan to change this drastically," said CEO-Used Cars CarDekho.com, Rajat Sahni.
According to a customer survey, more than a third of respondents ended up buying a car in a higher segment than the one they began their search after having clarity on loan amount.
"That's why it is important to find loan offers and show EMI tags. We aim to revolutionize the service levels in used car finance and make it as easy as new car finance," added Rajat.
"We are delighted to partner with CarDekho.com to offer the whole gamut of our product offerings. As a market leader in this category along with our wide distribution network in the urban, semi-urban and rural areas, our association with cardekho.com will help customer discover HDFC Bank's latest offers on used car finance and am sure we will be able to fulfill their demand," said Business Manager Auto Loans HDFC Bank, Nitish Nagori.
CarDekho.com has already facilitated annualized loan GMV of USD 20+ million since the launch of the pilot in Delhi NCR. CarDekho.com will extend this service to multiple dealer partners across the country in the coming months.
CarDekho.com currently runs one of India's largest used car classifieds platform helping customers discover a used car of their choice and enabling sellers to reach out to more buyers. It also launched CarDekho Trustmark certification and warranty to ensure buyers can purchase car with complete peace of mind and has inspected over two lakh plus vehicles till now. The launch of digital used car loan platform is another step to create a more robust used car ecosystem in the India.
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