Simple, there are too many vehicles. Ah but my analysis never stops there now does it? You thought I was one of your college textbooks to give a vague, mildly sensible answer, and then change the topic to something else. But it’s me folks, the God of Online Education.
Anyway, enough talk, down to analysis.
Why So Many Automobiles?
The reason why we have too many vehicles is that banks have given too many loans. Of course, now they are facing the pinch of Non-Performing Assets or loans going bad. In fact, just yesterday I saw a towing vehicle that had a Toyota Camry on the back, the towing vehicle had the board “Repossession” written on it. The bank that gave this person a loan to buy a Camry is taking it back because of non repayment.
There was a point where banks made it extremely easy to secure credit to buy your dream car or bike. The formalities by the bank was minimum. I remember my colleague wanted to by a Swift. All they asked was proof of his salary and basic documentation and he was able to provide that. Two weeks later he is driving a new Swift.
You may have also noticed that there are so many people driving a taxi today. All of which was bought on credit.
Why Did Banks Give So many Loans?
They wanted to fulfill our dreams of being able to afford our favorite bike or car. It is just like the advertisement says. Okay I am joking of course. Banks wanted to make money and hence they chose to give loans to almost every person who walked in.
You may have noticed that almost every person with a new car today says “Bank loan”. In fact look on the back of auto-rickshaws it has the words “HP to …. Bank” written on it. HP is hypothication , in other words the bank owns the auto-rickshaw until he has repaid it in full. I have seen people get loans without having a salary slip either. Yes, some banks can be that careless when it comes to offering a loan.
But Why Bangalore?
Banks perform a check on your credit worthiness. That is, there are a series of parameters they evaluate before they approve a loan. For example, someone who lives in a rented home has less chance of getting a loan approved compared to someone living in his own house. This is because a person living in a rented home will spend a big part of his income on rent because it is a basic necessity as compared to an automobile.
This process of examining someone’s credit worthiness is called credit evaluation. At the end of your valuation you are given credit score. Greater the score, you have more chances of getting your loan approved. You may have even seen an advertisement telling you to get your CIBIL score for easier approval of credit.
Your location also matters for getting a loan approved. Places like Mysore or Mangalore have fewer job opportunities compared to Bangalore. So even if you lose your job in Bangalore it isn’t easy to get hired in some place or the other just so you can pay your bills and of course the bank EMIs.
Because Bangalore has so many job opportunities the income of the people here is more stable. This makes it easier for a bank to approve you for a loan.
Still Though, Why Aren’t there Enough Parking Spaces?
Think of it like this, you eat more than what your body can actually digest, you tend to regurgitate. This city suddenly grew with an exponential inflow of migrants and software companies and this lead to a sudden increase in the income of the people who eventually bought automobiles. Maslow’s Theory of Hierarchical Needs?
Another face of migration that the report looks at is intrastate migration (movement of people within the same state or from surrounding districts into megacities). Here too, Bangalore attracted the highest percentage of highly educated migrants (33.8%) followed by Chennai (29.2%) and Hyderabad (25.3%). Mumbai stood fourth at 20.2%, a whisker ahead of Kolkata (19.6%). – Times of India Feb 05 2013
Municipal authorities on the other hand could not handle the sudden increase in infrastructure requirements. That is why you won’t find parking in Bangalore.
In the words of Jerry Seinfeld
People will kill each other for a parking space in New York because they think, ‘If I don’t get this one, I may never get a space.’ You know? ‘I’ll be circling for months until somebody goes out to the Hamptons.’ I think because everyone in New York City knows there’s gotta be way more cars than parking spaces. You see cars driving in New York all hours of the night. It’s like Musical Chairs except everybody sat down around 1964. The problem is car manufacturers are building hundreds of thousands of new cars every year, they’re not making any new spaces. That’s what they should be working on. Wouldn’t that be great? You go to the Auto Show, they got that big revolving turntable, and there’s nothing on it. New from Chrysler, a space.
God of Online Education