Things to Know About In-House Financing in Automotive Industry With an annual production of 24 million vehicles every fiscal year the Indian Automotive industry is emerging as one of the major players
This story originally appeared on Franchise India
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Accounting for 7.1 percent of country's Gross Domestic Product (GDP), the market share of automotive industry is ready to witness a boom, inviting more franchisors to expand their market nationally and globally, both.
What is In-House Financing?
In-house financing is a type of seller financing in which a firm confirms a loan to the customers, to purchase goods and services. It eliminates the firm's reliance on the financial sector, providing the customer with funds for completing a transaction.
Being a prominent user of in-house financing, the automotive industry has its business relying on buyers taking loans to purchase a vehicle. Offering in-house financing helps a firm to complete more deals by welcoming maximum customers.
Comprising of an economically diverse population, in-house financing has a sparkling future in India.
Smooth Purchasing Process
Instead of spending extra hours or days with a third party for getting your loan approved, in-house financing ensures a quick process with additional benefits. It includes extended warranties and flexible interest rates, which grabs the attention of customers for further investment.
Creating a shortcut through this financing tool, franchisors are ensuring that customers get their purchase at the earliest.
Easy to Apply
One of the best features of in-house financing is its high flexibility regarding approval. Customers with fair or low credit score consider this procedure to be a life savior, helping them from future troubles.
It, however, does not guarantee lower interest rates, but allow customers to refinance their products on higher interest rates.
Builds Credit
Franchisors through in-house financing offer customers with an improved credit score just a month after purchasing a vehicle. Improvement in the credit score comes with long-term benefits that pay off outside the loan.
The article was originally published on Franchise India by Shahram Warsi.
