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Many individuals have a dream to own a vehicle, mostly a car. Few of them have enough
financial support and are able to buy the vehicle they desire and few of them don’t have
enough money to buy there desired vehicle. These individuals are financially less stronger and
may not be able to pay the total amount at a time but are able to pay over a period of time.
For such individuals, Auto Financing is a door-way for there dream to come true.
Auto Financing is a process in which an individual in need of a vehicle but do-not have
enough money to pay the dealer gets financial assistance in form of a loan. The lender may
be a Bank or a Finance Company. Loan is approved only if the customer accepts the terms
and conditions of the organisation & completes the required documentation process. After the
approval of the loan, the customer can pay the dealer required money & buy the vehicle and
60 months. There are two types of lending direct lending and dealership lending. In direct
lending the customer is in direct contact with the bank or finance company by means of which
he can pay the dealer for the desired vehicle. Before approving the loan, the organisation
checks the ability of the customer to repay the loan. Until the last instalment is payed by the
customer, the authority of the vehicle is withheld by the organisation. In dealership lending, the
customer gets financial aid from the dealer. In this case the customer is supposed to pay 10%
of the total price of the vehicle and agrees to pay the remaining amount in instalments over
a period of time as per the terms and conditions of the company. In dealership lending either
the dealer keeps the customer account to themselves or sells to a bank or a finance company
which will be responsible for collecting the monthly instalments from the customer. In one angle
dealership lending is more advantageous because it has different options to choose the financial
assistance from.
Mahindra Auto Financing
In Auto Financing one should be very careful of which finance company he/she is seeking
assistance from and it is always suggested to do a good market research before choosing
one. There are some financial companies irrespective of the ability of the customer to repay
the loan, they approve loans. In this case one should be very careful of terms and conditions
of the company and considering what security they are approving the loan.
In Auto Finance Market one of the firms which is two decades old, yet trust worthy and
easy to reach is Mahindra Finance. Mahindra Finance is spread all over India and is located
in semi-urban and rural areas, thus it is easy to reach. Over two decades of time, it has
increased it’s goodwill in the society through different schemes and marketing strategies and is
serving it’s customers without differentiating there cast, sex, race and place of birth & providing
the best services possible and thus it is trust worthy. Mahindra Finance is providing Vehicle
loans, Home loans and personal loans to it’s customers subjected to the terms and conditions.
The sanction of Auto loans at Mahindra Finance is a very convenient to the customer such
that if all the required documents are provided by the customer, the loan is approved on the
same day itself with a reasonable rate of interest based on the financial situation of the
customer & the loan sanctioned after which the customer can go home happily with his new
vehicle.
Mahindra Auto Finance is basically a customer oriented company. The financial strength of
urban people is stronger than compared to semi-urban and rural India, thus for the sake of
customer convenience it have spread its wings all over the country in semi-urban and rural
areas of India & made it easy for the customer in need to approach in turn which helped it
to win the hearts of the people and boasting its market capture. It has given the customers
the leverage of deciding the repayment period of approved loan from minimum of twelve months
Mahindra Auto Financing
to maximum of sixty months which provides the customer with vast variety of repayment options
thus giving strength and support to those individuals who are not able to pay for there dream
vehicle at once and helping in achieving there dream by providing financial assistance which
they can return back by means of instalments with a reasonable interest in agreed period of
time. So by being a customer centred company, it is filling the lives of there customers with
light and happiness and therefore in this way it is winning the hearts of there customers and
There are other finance companies and banks which are into Auto Financing industry trying
to capture the same market that of Mahindra Finance popularly known as competitors. The
competition between any two organisations occurs because there end goals and targets are
similar and in some cases exactly same. The main competitors of Mahindra Finance are Tata
By creating the desire to buy a vehicle in the minds of the customer, we can see the
growth in the industry. If an individual is choosing to buy a vehicle even though he/she is able
to pay the required amount at once, it is a benefit for that customer. In this case instead of
solidifying a lumpsum amount in one thing, they are can pay it over a period of time and the
liquidity of cash is uninterrupted i.e., they can invest that amount in a maximum profit giving
sector through which they can gain profits from the available money in there hands. If these
thoughts are realised and positioned in the minds of the customers, the Finance industry will
tend to have a positive growth and will be able to capture a larger market. Maintaining a good
business relationship with the existing customer encourages them to give a positive feedback
in there family, friend circle and neighbourhood creates our brand name in the market and help
the organisation in reaching out to more people who may become our customers very soon.
Mahindra Auto Financing
There are also few factors that are affecting the growth of the Auto Financing industry. If
a company has a high interest rates without considering the outside market, it may result in
the decrease of its customer satisfaction ultimately resulting in reduction of its own revenue.
The economy of the country has an overall affect on individuals and all the firms in the country
i.e., if the economy of the country increases, it will result in increased revenue and vice versa.
If the rate of repayment by the existing customers is not regular, it may result in interruption
As per my opinion, Auto Financing is a very easy means through which an individual can
get his/her dream vehicle by paying a minimum amount over an agreed period of time. Auto
Financing results in regulation & increased production of vehicles depending on the demand
from the customers. As long as Auto Financing industry is satisfying customer needs and