Used Car Market Trends
The Used Car Market Trend showcases a positive aspect of buying and selling old cars. Due to ease of ownership and the introduction of instant selling platforms, this market is expected to flourish more in the coming years. In this blog, we have covered used car market trends to give you better insights.
The Indian Used Car Market is growing with tremendous potential and is expected to register a growth of 15.1% during 2022-2027. Since the market is booming, online platforms for buying and selling used cars have influenced people to choose verified and trusted pre-owned cars. People are now finding it more legitimate to buy used cars than before. However, some challenges still exist, posing a roadblock to the growth of this market segment, including a ban on diesel vehicles and phasing out of BS-IV vehicles.
While the sale of new passenger vehicles in India stood at a mere 2.8 million units in FY2020, the pre-owned car market saw a whopping 4.4 million units in the same year. This highlights the growing popularity of used cars in the country, as more and more people turn to the pre-owned market to fulfill their transportation needs.
Used Car Market Trends – Unorganised Sales Channel Dominates the Market
It is commonly observed that sales of pre-owned cars happen through different channels, which are categorized into unorganized channels covering semi-organized and unorganized channels. The semi-organized network consists of mechanic shops and garage stores, while unorganized sales happen through brokers or agents. As per the research by Mordor Intelligence, It has been observed that most of the market share is dominated by unorganized sales channels, as they offer a wide range of options to consumers while easing out their decision-making process.
Growth of Demand for Luxury Cars
The aspiration of people to own a luxury car always remains a great market opportunity which resulted in 35-40% YoY growth in the pre-owned luxury car segment. In the past, it took a lot of work for many people to afford a luxury car due to their high price tag. However, this used car market trend is shifting as more and more consumers can purchase pre-owned luxury vehicles. The market for these vehicles is becoming more organized, with financing options, annual maintenance contracts, and lower entry prices becoming more readily available.
Used luxury vehicles coming onto the market are generally only 2-3 years old, making them a more attractive option for some buyers than mid-size or small-scale vehicles, which are often 5-6 years old when they enter the used car market.
Competitive Market to Sell & Buy Old Cars – Positive Aspect for Consumers
Nowadays, if you are upgrading to a new car or looking to buy a used car, it is not at all tough. Since various platforms exist, like Olx Cars and Cars24, it gives you a great opportunity to sell your car in just a few hours without worrying about any compliance issues related to RC transfer. These companies take care of all the legal formalities and offer a hassle-free experience for buying and selling pre-owned cars in the market.
The convenience of selling and buying makes it a more positive ecosystem for consumers to get a better choice to negotiate in pricing. One of the companies called, Spinny also delivers the car right to your doorstep, so you don’t need to worry about going to a showroom or garage to crack your deal.
Used Car Loan – Ease of Access to Easy Credit
Availing Used Car Loan is another Used Car Market Trend that influences consumers to buy their favorite car at an affordable price. With banks offering up to 90% finance on buying used cars, people are drawn towards these lucrative schemes due to easy credit accessibility and nominal interest rate.
Conclusion
In conclusion, India’s used car market remains a vibrant and exciting place, offering consumers a wide range of options for finding a pre-owned vehicle that fits their needs and budget. As the market continues to evolve, it will be interesting to see how these trends and challenges shape the industry in the years ahead.
