While people who wish to buy cars through bank loans may not face much financial difficulty, they do have the challenge of trying to get the loans at a time when banks have their hands full managing crowds seeking to exchange currency, dealers in Tiruchi said.
An official of a non-banking financial company that provides funds for the used-vehicle market too said demonetisation had a short-term impact on the sector. “Over the next six months to one year, it will get streamlined. People will have more money once these hurdles are crossed,” he said.
Dealers and financing companies are hoping that interest rates will fall, as is being projected, and will spur lending and sales. While sales of cars in the price range of Rs. 1-1.5 lakh are expected to happen with minor hassles, as people make these payments through online transfers, bigger cars that are priced beyond this range are likely to find fewer takers in the short term.
“There is not much sales of bigger and luxury cars as we insist on payments through bank transfers.
Normally, we used to sell about 40 to 50 cars, but this month it seems that the numbers will drop by more than 50 percent,” said Singaravelan, proprietor of New J.J. Cars.
“Going by the current scenario, it seems that the situation will improve only after December,” said S. Ramakrishnan of Bhagavan Cars in Tiruchi.
An official of a non-banking financial company that provides funds for the used-vehicle market too said demonetisation had a short-term impact on the sector. “Over the next six months to one year, it will get streamlined. People will have more money once these hurdles are crossed,” he said.
Dealers and financing companies are hoping that interest rates will fall, as is being projected, and will spur lending and sales. While sales of cars in the price range of Rs. 1-1.5 lakh are expected to happen with minor hassles, as people make these payments through online transfers, bigger cars that are priced beyond this range are likely to find fewer takers in the short term.
“There is not much sales of bigger and luxury cars as we insist on payments through bank transfers.
Normally, we used to sell about 40 to 50 cars, but this month it seems that the numbers will drop by more than 50 percent,” said Singaravelan, proprietor of New J.J. Cars.
“Going by the current scenario, it seems that the situation will improve only after December,” said S. Ramakrishnan of Bhagavan Cars in Tiruchi.