Lower interest rates offered on used-cars loans

he interest rates on used cars have lowered to about 15.5%, as this segment of business turns more organized with increased participation of carmakers.

Rajan Pental, head auto finance, HDFC bank, "Higher sales through these channels have lowered the risk profile of customers and improved their payback capability, enabling us to offer loans at lower rate without compromising our business interest."

The certified pre-owned car programmes with the ownership certifications and quality ratings of the vehicles have enabled more transparency in car-resell deals. In recent years, many reputed carmakers have entered this business, resulting in increase of market share to around 20 percent from the 4-5 percent during last three years. The names include, Hyundai Advantage, Maruti's True Value, Honda'a Terrace, GM's Chevrolet OK, Tata Motors, Ford Motor and Mahindra's First Choice.

Maruti Suzuki, in public-private partnership with banking majors like SBI and PNB offersused car loans at 15 percent or lower interest rates to its value customers. Quoting a senior Maruti official, true value division, "With total transparency and complete quality checks in second-hand car sales, we have been able to increase bankers' confidence resulting in lower interest rates. The consistent double-digit growth in organised used-car business has restored confidence of banks and some more cuts in rates are expected in future."

In a used car deal, the interest payout on a loan of Rs 4 lakh lowers by around Rs 2,000 per year. The interest rate gap between new and used car loans is as much as 4-5 percent. Considering the financial aspects and market dynamics, the interest in used car loans has considerably increased.

Commenting on the trend, a senior executive of ICICI Bank, said, "There has been a significant shift towards getting reliable cars with customers willing to spend more. With the carmakers stepping in to build their brand loyalty and setting standards in used-car deals, the risk on these assets has reduced, in-turn allowing us to offer cheaper interest rates."

Rolling Out the Welcome Mat at Waitson Wheels

It was time to step out on his own. With almost 30 years experience in

the auto business, Paul Waitson wanted to create a niche in the market with a new approach to car sales. In April, he opened the doors of Waitson Wheels, a small independent used car and truck dealership offering straightforward advice, value and service.

As the sole proprietor, his business plan is simple -- keep it simple: Specialize in quality, fuel-efficient vehicles * Maintain a low overhead at a smaller dealership in order to pass the savings on to customers with reasonably priced, used cars and trucks * Scour the markets of the eastern Ontario region in a more efficient and easier process for finding quality used vehicles to sell.

It's a no nonsense climate that puts the customer in the driver's seat. Waitson explains. "Our market is the $5,000 to $12,000 price range. Through auction and contact with local dealerships and American brokers, we are able to offer customers exciting, high quality, value-oriented vehicles. Each one is hand picked, cleaned and scrutinized both mechanically and cosmetically, with a warranty provided. All vehicles are lien free and a vehicle history will be provided where available."

The website inventory makes it so easy to shop. If you can't find exactly what you are looking for, don't despair. Waitson will work with you to try and find the right vehicle at the right price. And his credentials let you buy with confidence. He is a member of the Used Car Dealer Association (UCDA) and a registered dealer with the Ontario Motor Vehicle Industry Council (OMVIC).

Sirus Finds A Way To Tap The Used Car Market

Volkswagen is now offering a three month full satellite radio package in every certified pre-owned vehicle. The main reason I love this move is because car manufacturers usually follow each other. When one comes up with a marketing scheme the others will follow in an effort to stay competitive.

Right now the certified used car landscape is the place to be. Sales of these types of vehicles have increased almost 50% in the last 8 years; mainly because genuine factory certified cars carry a bumper to bumper / power train warranty that usually extends to 100k miles.

With this news from VW it will not be long before the other major manufacturers like GM, Toyota (TM), Ford (F) etc. follow suit. By creating an already active subscription in used cars, it will significantly increase subscriber numbers by retaining the percentage of people continuing with the subscription; similar to the retention percentage in the new car market. The current estimate of factory certified pre-owned vehicles is approximately 1.6 million per year.

This is a solid step for Sirius to move beyond the shackles of the new car environment and turn on those inactive radios. What would also be a good idea is for Sirius to roll out a campaign and give current used car owners with inactive satellite radios the same three month trial. In 2008, approximately 30% of new cars came with satellite radios. In 2009 that figure has jumped to 50%. It won’t be long before these cars become part of the used car market and give Sirius the opportunity to recycle the radio subscriptions to another owner. Go Green indeed.

It is very encouraging to see that Sirius is taking measures to step beyond the “same old same old” and look for creative avenues to increase customer retention and revenue. Alright, maybe this used car idea isn’t exactly a major epiphany. It’s more like a “duh huh” why didn’t they do this sooner? But hey no one can say an effort is not being made. In the pipe dream hopes of avoiding a reverse stock split, I truly hope that Sirius continues to boost their exposure as much as they can. Hey, it’s my delusion, don’t step on it.

Used Car Loans - Old Auto Financing Options for People with Bad Credit Score

Mainly young people and limited wage earner face difficulty in buying a new car for the reason sky rocketing prices of new cars. So they do not want to use their whole savings to buy just one high priced car. At such circumstances used car loan is best option for purchasing a used car. Because now a days used cars are as attractive as the new ones and so you can get used car loans at very competitive rates as the cars seized from defaulters are as good as new. There are many such used cars to be found that are just a year or two old. These cars possess more or less the same features as a new car. The various types of used car loan which can be found in the market are mentioned below.

Generally there are two types of used car loans one is secured and another is unsecured. In asecured used car loans you can get competitive interest rates. And any type of asset or bank paper containing certain value can be used as collateral for the used vehicle loan amounts. You can use the vehicle itself as collateral for a used vehicle financing. In secured car finance you can borrow up to the amount of equity in collateral.

Another is an unsecured used vehicle loan which is generally targeted for all those who are not willing to place collateral. An unsecured used vehicle loans carry’s no risk to assets since assets are not involved. The factors like your credit score, credit history, financial situation, employment proofs and income proof are taken into consideration when determining the interest rate of a unsecured used vehicle loan. Many lenders offer low interest used car loans. Regardless of your credit history, you can get approved for a low interest automobile loan as the financing based on your qualifications. As the online lenders have thousands of lenders in their network, so that gives you an opportunity to compare lenders deals which will helps you to find the best rates. Thus you can also select terms that give you the most favorable loan financing.

It’s a well known fact, that person with a good credit score is always offered with a great offer and competitive rates. But now a days lender also offer bad credit auto loans with the best rates on used car to individuals with poor credit. Unlike dealerships that offer excessive rates, the online lenders have a reputation for approving loans with fair rates. The objective is not to make profit out off someone’s misfortune, rather to help people to buy their dream car. Pre approved used car loan is one of the best options to get you the best deal on a used car loan by getting your finance deal done before you buy a car. Pre-approved loans gives you the most options on deciding how much you want to borrow and what rates to accept. Thus it gives you an edge when buying a car.

Another concept which is more popular among the auto loans field is refinancing. People end up getting high interest rate when they have bad credit but when their credit gets improved, they still end up paying high rates. At times refinancing used car loans can get car credit at low rate. Refinancing used car loans can immediately put an end to your monetary troubles that come with high interest car loans. Through used car loan refinancing you would able to obtain a new loan, including a lower rate of interest, in place of your current high interest rate loan.

Used car loans are very easy to get online by comparing various car loan quotes. Comparing online car loans facilitate in obtaining the best auto loan in the market. So, don’t wait and go get yourself a used vehicle loan to get you the car of your dreams.

Kolkata luxury car sales buck national trend

At a time when luxury car sales have dipped nationally, Kolkata is witnessing a reverse trend with more and more premium carmakers opening showrooms.

Before premium German brand BMW opened its first showroom in the city in May last year, its competitor Mercedes, managed to sell around 65 cars in 2007. Interestingly, in 2008, Mercedes managed to sell 80 cars, while BMW also sold 55 cars between May to December. “The market has indeed grown over the last few years, alomost doubling in 2008 over 2007. Moreover, around 50 per cent of last year sales of luxury brands has been achieved in the first quarter of the current fiscal”, said A Daga, director of Marks N Glix, that operates in the buying, selling and financing space of old luxury cars. Marks N Glix was originally in the car accessories business. It entered into the used car sales business in April 2008 seeing opportunity in the growing market. Around 50-60 used premium cars sell in Kolkata every year, the most sought after being the BMW 3-series.

Between January to May this year BMW has already sold 55 cars, and its only dealer in the region, OSL Prestige, is confident of selling another 120 cars during the year. Mercedes, in comparison, has sold lesser number of units. The company declined to share the sales figures. “While the East cannot be compared with the West or the North Indian markets in terms of size, it sure is growing at fast pace”, said a senior official of a Kolkata-based premium car dealership. In comparison, the downturn has hit these mature car markets, that is indicated in a 7.59 per cent dip in high-end car sales in India in May when the overall passenger car sales grew by 2.48 per cent.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), in the first two months of the current financial year the sales of the high-end cars declined to 7,098 units from 7,149 units in the same period last year. In contrast, the Kolkata market had not shown signs of the downturn in 2009, primarily on account of the low base, insiders said.

Attracted by a lucrative market, another German premium car brand, Audi, is keen to open a showroom in the city within a couple of months even after its first deal with a local developer did not work out.

Audi recently launched its Q5 sports utility vehicle(SUV) that is available in eleven dealerships across India, but a Kolkata buyer now gets it transported from other cities. Its co-brands Volkswagen and Skoda are doing reasonably well in the region.

Volkswagen opened a Budge Budge Trunk Road outlet in March and has already booked 30 vehicles between March to May.

Volkswagen Kolkata, the dealership, now plans to open another showroom near the Eastern Metropolitan By-pass within the the third quarter of this fiscal. Skoda’s dealership, Jia Auto, informed that they were selling 35 cars per month on an average driven mainly by the demand for its hatchback, Fabia and the sedan, Laura. “These two cars account for 15-20 bookings a month”, said R Kothari, director of Jia Auto, the only dealership of the car brand in the region.

After the dealership started in June 2007, it witnessed a lull only once, during October to December last year, when it sold an average of 30 cars per month in comparison to 50 cars per month a year ago. Kothari added that sales had off late recovered from the downturn, and have gradually started picking up in the last three months.

Honda’s premium brand, the Accord, also saw a three-fold rise between January to May this year on a year-on-year basis.