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Business Standard
3 days ago
- Automotive
- Business Standard
Used-car sales grow twice as fast as new ones: A buyer's advantage in 2025
Planning to buy a car in 2025? You might want to look at the pre-owned market before you step into a showroom. According to the latest report by CRISIL Ratings, used-car sales in India are growing at more than twice the pace of new ones, with volumes expected to cross 6 million units this year. That's a sharp rise from just a few years ago and a clear signal of a structural shift in buyer behavior — especially among value-conscious, digitally savvy consumers. "This has lifted the used-to-new ratio in car sales to 1.4 from less than 1 five years ago, with the volume growing more than twice as fast. The market value of these used cars is estimated to be around Rs 4 lakh crore, nearly matching that of new car sales," said the report. Used vs New: The Ratio is tilting Five years ago, for every new car sold in India, less than one used car was bought. Today, that ratio has climbed to 1.4:1, reflecting greater affordability, easier financing, and wider digital access in the second-hand market. Compare that with developed markets like the US (2.5x) or UK (4.0x), and there's still room to grow. But what's changed for Indian buyers? 'Rising consumer confidence, faster upgrade cycles, and preference for SUVs have brought the average age of used cars down to 3.7 years,' says Anuj Sethi, Senior Director, CRISIL Ratings. What is driving demand? Affordability: Used cars offer better value, especially in a market where new car prices have risen sharply post-pandemic. Supply Chain Gaps: Shortages in rare earth materials and semiconductor chips continue to delay new car deliveries. Pre-owned cars offer quicker access. Financing Has Improved: AI-driven underwriting, partnerships between lenders and used-car platforms, and expanded credit options make financing easier than ever—even for first-time buyers. More Inventory, Better Quality: With strong post-pandemic sales in the new car market, more recent-model used cars are now available, often with low mileage and service history. What should buyers keep in mind? If you're considering a used car in 2025, here's how to do it right: 1. Buy from Organized Players Online platforms and manufacturer-backed outlets now offer inspection reports, warranties, and doorstep delivery—giving you confidence, choice, and convenience. 2. Check Vehicle History Make sure the car is RC-cleared, insurance-covered, and not part of any accident or legal dispute. Ask for service records. 3. Get Financing Pre-Approved Interest rates for used-car loans tend to be 1–2% higher than new car loans, but competitive offers are available for salaried professionals and buyers with good credit scores. 4. Factor in Maintenance While modern cars are more durable, check parts availability and servicing costs, especially for discontinued models. 5. Be Open to Upgrades With the average age of used cars now under 4 years, it's possible to buy a top-end trim or SUV for the price of a new entry-level model. "Besides, first-time buyers have a wider range of used car models to choose from, supported by healthy new car sales in the post-pandemic period. To top, improving access to vehicle finance, through lender-platform partnerships and underwriting, driven by artificial intelligence, is likely to support this shift. Strong growth has led to expansion of organised players in the used car segment even as profitability remains a challenge," said Crisil in a note.
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Business Standard
3 days ago
- Business
- Business Standard
Dreamfolks Services hits new low, tanks 33% thus far in July; here's why
Dreamfolks Services share price today Dreamfolks Services shares hit a new low of ₹158.50, falling 2.6 per cent on the BSE in Friday's intraday trade. Thus far in the month of July 2025, stock price of the airport & airport services company has tanked 33 per cent following the closure of the programmes run for its clients, including Axis Bank, and ICICI Bank, effective from July 1, 2025. With the past nine days' decline, shares of Dreamfolks have corrected 70 per cent from heir 52-week high level of ₹522, which the company had touched on September 6, 2024. Currently, the stock is trading 51 per cent below its IPO issue price of ₹326 per share. The company made its stock market debut on September 6, 2022. Closure of certain programmes of certain clients Dreamfolks, on July 1, 2025, informed that the company has been running various programme for Axis Bank and ICICI Bank. Certain programmes of the abovementioned clients, however, were closed w.e.f. July 01, 2025. Contracts with both the banks, although, are still valid. "While the master agreement with the mentioned banks continues to remain in place, some services — including lounge services offered on a certain category of cards — will be discontinued. The company is currently negotiating with ICICI and Axis banks about new services to be offered in place of the discontinued ones; thus, the potential impact of the said closure of programmes, though material, is difficult to assess as of now," according to analysts. CRISIL Ratings rationale That said, CRISIL Ratings has reaffirmed its credit ratings for the company on the overall sanctioned bank facilities at ₹145 crore. These ratings have been placed under watch with negative implications. CRISIL has indicated that it will continue to engage with Dreamfolks' management to closely monitor the measures taken by the management towards closure of its programmes with the banks, and its impact on the company's overall business and financial performance. The rating watch will be resolved once there is greater clarity on the matter, it said. Meanwhile, lounge services, which are majorly accessed through credit/debit cards, constituted ~93 per cent of the total revenue of Dreamfolks for fiscal 2025. The company's operating income is susceptible to changing credit card schemes as card operators and banks are now focusing on offering services based on spending (higher the spend, higher the eligibility to avail of service). According to CRISIL Ratings, Dreamfolks' revenue is expected to grow 15-20 per cent over the medium term, driven by rising passenger traffic with addition of airports across the country as the government focuses on infrastructure expansion. Diversifying into new segments such as highways, railways, lifestyle, food and beverages, golf courses and tie-ups with RedBeryl, Grey Wall and VFS Global will help Dreamfolks scale up operations and maintain strong market position. The operating margin declined to 8.4 per cent in fiscal 2024 from 12 per cent in fiscal 2023, and further reduced to 7.18 per cent in fiscal 2025, It is projected at 8-9 per cent over the medium term. There has been sizeable onboarding of employees in fiscal 2025 to manage the 3,000+ touchpoints; benefits for this may be visible only from fiscal 2026. The company has also penetrated into new segments such as highway dining, coffee, food and beverage outlets, lifestyle and ultra luxury experiences. Stability in the operating margin while maintaining growth in the new segments with prudent working capital management will be monitorable, CRISIL Ratings said in a rationale. Dreamfolks is India's largest airport service aggregator platform. It provides services such as lounge access, food and beverages, spa, meet and assist, airport transfer, transit hotels/nap room access and baggage transfer. Clients include major card networks, banks, online travel agents, airlines and enterprises.
Time of India
5 days ago
- Business
- Time of India
NBFCs' education loan growth may slow sharply in FY26 amid US, Canada policy shifts
NBFC's education loan growth is projected to slow significantly due to policy changes in the US and Canada, impacting disbursements. While US loan share decreases, other countries like the UK and Germany are gaining traction. Despite global shifts, NBFCs maintain strong asset quality, exploring domestic loans and skill development funding. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Growth in the education loan book of non-banking finance companies is expected to halve in the current financial year because of policy uncertainty in key markets like the US and stricter student visa rules in Canada. CRISIL Ratings estimated education loan assets under management of NBCFs to grow 25% to around Rs80,000 crore in FY26. This compares to a growth of 48% in the previous fiscal and 77% in terms of loan disbursement, FY25 saw a growth of 8% compared to 50% growth a year ago.'Policy uncertainties in the US, combined with measures including reduced visa appointments and the proposed elimination of Optional Practical Trainingnorms have culled newer loan originations. This has led to a ~30% decline in total disbursements to that geography last fiscal,' said Malvika Bhotika, Director, Crisil linked to even Canada, the second-largest market, fell as student visa rules became stricter, including increased financial requirements via proof of available funds, and cap on permits, she rating agency said that the share of US in overall education loan portfolio has come down to 50% as on March 31, 2025, from a peak of 53% a year share of US is expected to go down further over next few years as lenders gravitate towards other geographies. Meanwhile, education loan disbursements linked to courses in the UK, Germany, Ireland and smaller countries have increased to almost 50% in FY25 from 25% a year ago as students opted for alternative destinations. Still, this will not fully offset the decline in US-linked disbursements, it the same time, NBFCs are also looking at domestic student loans and adjacencies such as school funding, loans for skill development, certification and coaching, CRISIL the global developments, NBFCs have maintained healthy asset quality so far. Gross NPAs stood low at 0.1% as on March 31, 2025. And even after adjusting for the moratorium, gross NPAs were well under control at ~0.7%, the rating agency added.
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Business Standard
7 days ago
- Business
- Business Standard
Securitisation volumes rise 9% to Rs 49,000 crore in Q1FY26: CRISIL
The sale of loans by banks and non-banking finance companies (NBFCs) through securitisation rose 9 per cent year-on-year (YoY) to Rs 49,000 crore in the quarter ended June 2025 (Q1FY26), according to credit rating agency CRISIL. NBFCs were the dominant players, recording a 24 per cent YoY rise in loan securitisation. The process involves pooling loans into a structured product and selling it to investors to generate liquidity. Lenders securitise loans through pass-through certificates (PTCs) or direct assignment (DA). NBFC-originated loans accounted for 92 per cent of the total securitisation market in Q1FY26, up from 74 per cent in the full financial year 2024–25 (FY25). Higher volumes from finance companies helped offset lower origination by banks, supporting overall securitisation growth, CRISIL said in a statement on Monday. The number of originators participating in these transactions stood at around 90. Total securitisation volumes were Rs 2.4 trillion in FY25, compared to Rs 1.9 trillion in FY24. Aparna Kirubakaran, Director, CRISIL Ratings, said: 'The top NBFCs have remained steadfast in tapping the securitisation market as a strategy for resource profile diversification. On the other hand, originations by small and mid-sized NBFCs—mostly present in microfinance, unsecured personal loans and business loan segments—moderated as both the NBFCs and investors remain cautious in these segments.' Bank-originated securitisation, dominated by a few large private sector banks, saw lower volumes amid a steady improvement in their credit–deposit ratios, the agency noted. In terms of asset classes, vehicle loans (including commercial vehicles and two-wheelers) maintained their dominant share at 41 per cent in Q1FY26. The share of mortgage-backed loans fell to around 21 per cent, down from 25 per cent in Q1FY25—largely due to lower volumes from a major private bank. Gold-loan securitisation rose sharply to 11 per cent in the quarter ended June 2025, up from negligible levels a year ago, aided by the lifting of regulatory restrictions on a key originator. Meanwhile, securitisation backed by microfinance loans declined to 11 per cent from 14 per cent, as the industry continues to recover from rising delinquencies by focusing on stronger underwriting and scaled-back disbursements, CRISIL added.
Time of India
07-07-2025
- Business
- Time of India
Gold loan sees fastest growth in overall securitisation volume in June quarter
Bundled pool of gold loans saw the fastest growth in the overall securitisation volume in the June quarter. Gold loan securitisation , which did not have much share in the total volume in the corresponding quarter last year, stood at Rs 5,390 crore or 11% of the total securitisation volume of Rs 49,000 crore, according to CRISIL Ratings . The rating agency said that the jump in the share of gold-loan securitisation is supported by lifting of regulatory curbs on a leading originator. Total volume of loan securitisation , which is a source of liquidity for banks and non-bank lenders as they club different loans and sell it to investors, jumped 9% YoY in the first quarter of the fiscal year. Share of vehicle loans (including commercial vehicles and two-wheelers) held steady at 41% in the June quarter, while that of mortgage-backed loans decreased to 21% from 25% in the first quarter of the previous fiscal. The decline is largely attributed to lower volumes originated by a large private bank. Live Events Similarly, securitisation backed by microfinance loans declined to 11% from 14%. The industry is trying to emerge out of rising delinquencies by focusing on strengthening underwriting processes and scaling back disbursements in the near term, CRISIL said. Meanwhile, the share of personal loans and business loans decreased 200 basis points each to around 9% and 7%, respectively. 'The top NBFCs have remained steadfast in tapping the securitisation market as a strategy for resource profile diversification. On the other hand, originations by small and mid-sized NBFCs - mostly present in microfinance, unsecured personal loans and business loan segments – has moderated as both, the NBFCs and investors, remain cautious in these segments,' said Aparna Kirubakaran, Director, Crisil Ratings.
