Purchasing a car has always been a matter of pride and an indication of one’s social status in the community. This is usually the case when buying a brand-new car. However, purchasing a pre-owned car is gaining prominence in India as buying a pre-owned car has its own advantages and benefits the buyer in a number of ways. The Indian car market is still at a nascent stage and underpenetrated in comparison to its counterparts of developed markets. In India, car ownership stands at a meagre 3%, creating a huge opportunity for the auto industry. Additionally, more and more people are now investing in personal cars over public transportation, as consumers have become more aware and safety conscious, the sector is expected to grow at a CAGR of 10-15% this decade.
The used car industry in India is valued at $20-25 Billion (Yearly), thus, showcasing the immense opportunity it presents in a country like India where the market is still unorganized. What companies should aim at is creating value for a customer with the help of technology by bridging this gap.
It is no rocket science that a pre-owned car is cheaper to purchase. However, over and above this, a well-kept pre-owned car is better value for money than a new one- it is not only an upgrade in life but also satisfactory in its economic value, general function, and usage.
A used car is beneficial to first time buyers upgrading from two-wheelers or public transportation, or for that matter, someone looking to buy a second set of wheels in the family. All it takes is less than a minute for a new car, straight out from its showroom, to lose 10-30% of its purchase value as it enters the used car territory.
Opting for a pre-owned asset purchase means you have to pay a lot less than the original value of the car, depending on its year of manufacture and kilometres covered, which means buyers are in car paradise and can really save on a compelling purchase.
Given the life of a well-maintained car is at least 10 years, if not 15, buying a well-kept second- hand car is a fantastic bargain. This means that you can either save money by buying a second hand or upgrade to a much better car because you could, for example, buy a second- hand Fortuner with the budget you had kept aside for a new Creta.
A fun fact to keep note on, new car buyers also end up spending a lot of money on additional accessories for the car, however, when a pre-owned car is purchased, buyers save on this cost as all the required accessories come with the car itself. Seems like a complete win- win!
Let’s keep in mind the tens of thousands of concerns that come across our mind while thinking of purchasing a used asset, let alone purchasing it online. It may be an excruciating and a tiresome experience for some buyers. But does it have to be? Technological solutions have never been more transformed, credible, and useful as they have in the last decade. Technology and data science teams are heavily responsible for helping us combat these challenges and leading to the emergence of organized sectors while also changing the uncertainty in transactions and relationships.
For a diverse market like India, below are a few solutions which highlight all factors indicating that the used or pre-owned car space is the right decision for Indians. It meets supply with demand, provides smart technological solutions on a real time basis and also gets you your car on your doorstep (or out of) for what it’s worth!
• Buyers are provided with a wide selection of cars so they can find the exact model in the exact condition and exact colour they want as against being forced to choose something sub-optimal. This goes a long way in giving them and their family the assurance of not having to compromise and simply buy a ‘cheap’ car
• Transparent pricing and a technology enabled catalogue so buyers can quickly browse through hundreds of cars and choose the right one that suits them the best
• A transparent evaluation report that allows them to understand the exact condition of the car so that they do not have to deal with any last-minute surprises
• Financing options which allow them to pay via EMI
• A no questions asked return policy so that the entire transaction is risk free and a warranty in case there are challenges in the future
• Lastly, a delivery experience akin to a new car where a glowing, spot less car is delivered to them so that their family members can be there to take the delivery alongside. This again goes a long way towards making their family realize that this is not a compromised choice but a smart financial decision. And if they have upgraded the car for the same budget, then it’s an even bigger win!
Buying a pre-owned car is now a beneficial decision and even better for a market like India. One can get more of their money’s worth, can upgrade to a bigger car and have easy finance schemes along with complete assurance and confidence in their purchase, all being made available on the backbone of strong technology. In fact, investing into a pre-owned car also means you can change cars every few years without losing a high amount of money on it!
Last but not the least, if there’s one thing that dealers, manufacturers, and industry analysts in the Indian auto industry agree on, it’s that no matter what the economy does, an increasing proportion of vehicle sales will move online. The customers love the idea of having tens of thousands of cars in their pocket without having to go from one dealership to another in search of what they want. And if customers love it, dealers will want to have it. This is further being fuelled by the growing popularity of e-commerce, the surging penetration of the internet and the increasing usage of smartphones, is also propelling the demand for pre-owned cars in India.
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