A huge ground with neat looking cars lined up and a number of tie-clad executives engaged in polite discussion seated comfortably in huge stalls, are a regular part of urban scenery now-a days. Don't be surprised, if I tell you that it is a car loan mela. Organized frequently by major banks like ICICI, ABN Amro, HDFC, Citibank etc., these special events are becoming quite a rage, as they provide good value used cars at a great price. A buyer who satisfies the bank criteria can drive away a car of his choice without burning a hole in his pocket.
Used cars are fast gaining popularity for more than one reason, but the biggest one is the amount of savings they bring in terms of price. Considering the fact that a used standard car or premium car be easily bought for a price 20% to 60% lower or even more depending on the model, mileage and condition of the car, makes people flock to the used car loan melas.
Banks do a lot to attract people to the used car loan melas. A big issue with buying any used car is the verification of the vehicle ownership, its accident history, maintenance record, quality checks and whether the vehicle is not a stolen one. An individual buyer doesn't have the requisite expertise and time to do these things. So, the banks take care of all such formalities and get the vehicle inspected, tested and quality checked before displaying them at any such event. The tests and checks done on such vehicles are quite comprehensive and it more or less ensures that a buyer is getting a good deal. Moreover, there is a norm that banks provide a one year warranty on any used car.