The automotive industry is on a boom especially in the Asian countries. The automobile is adapting new technologies rapidly and this excitement is captured by the consumer every day. The automotive industry is also gearing up to increase production and launch newer models to meet the expectations raised by the public. Safety and new features are also making the industry change rapidly to the changing needs and conditions.
An automotive cost is very high compared to buying another electrical or mechanical device. The cost is not in any way comparable for low or high segment cars. To facilitate the smooth and economical transfer of ownership to the consumer, the need to finance gave rise to the auto finance industry. The financing of new vehicles is growing in equal pace as the automotive industry. The auto financing has been growing in leaps and bond especially due to the invention of new generation schemes. The options of flexibility in choosing the tenure and low interest rates are driving forces of this industry. The quick approval of loans and the ease of facilities provided to the consumers are making it the preferred choice of the customers. The financing industry is also facing stiff competition within due to the increase in number of players. The high volume driven industry is maintaining growth with more focus on customer and dealer or manufacturer relationship. The auto finance industry works in close association with the manufacturers or dealers to provide innovative and special schemes to drive sales during festivals or dull months. A complimentary gift item along with the approval scheme is like the icing on the cake. The auto finance industry is also fuelled by the invention of new models by the manufacturer.
The used car market, which used to be cash and carry, is also turning to the auto finance industry to increase sales and purchase options to the consumers. The used car market financing though charges a slightly interest rate is also becoming a preferred choice for a depreciating asset. The financing options also include exit tracks to close the loan without or less penalty. This makes it even more comfortable for the consumer. The consumer when loaded with cash due to incentives or promotion can easily settle the loan and lessen his liability on a monthly payout. The auto finance industry is available for both two and four wheeler models across the world.