LightWaves Group

Let’s Discuss: Is Car Finance Getting More Accessible for the Middle Class?

With new financing models emerging, car finance ownership appears within reach for more buyers. But is this accessibility real, or are hidden traps lurking?

The Accessibility Revolution

📈 Fintech Disruption:• 5-minute loan approvals via apps• Alternative credit scoring (utility bills, rent history)

💰 Affordable Options:• Subscription models (₹15,000/month all-inclusive)• Used car loans at 8.5% (down from 12% in 2019)

Hidden Realities

⚠️ Longer Tenures = More Interest:• 84-month loans now common (pay 140% of car price)

⚠️ Balloon Payment Traps:• Low EMI but massive final payment surprises

⚠️ Insurance Bundling:• Forced comprehensive policies inflate costs

Smart Financing Tips

✔ 20/4/10 Rule:• 20% down payment• 4-year maximum term• 10% of income on auto expenses

✔ Prepayment Clauses:• Ensure no penalties for early closure

The Verdict: While more people qualify for loans, financial literacy is crucial to avoid debt cycles. The most accessible loan isn’t always the smartest.