The used car market is deepening its roots in the Indian market. The reasons to choose a used car over a new one are many. The people of India are finally getting used to the idea of purchasing pre-owned goods, especially expensive ones like cars.
And why not! They come in much cheaper and are almost as good as new! The number of used cars sold in India for every new car is increasing year after year.
Many investors, both Indian and international, are speculating a mile-high growth in the used cars market in India. The used car sales record is seeing a rapid upward slope in every successive year. Sure, there are many factors to consider while buying a used car, but it is more profitable and affordable in most cases.
If you were planning to buy a car but are falling short of disposable funds, you should definitely consider checking out the automobile market in India at least once. In case you are uncertain of the success rate of the used cars, we have tried to break it down for you in this publication. The number of used cars sold in India should encourage you to trust your instincts and get your new, used car soon!
Used car sales record
The used car market is relatively new to the Indian marketplace. Considering its young age, the market is doing exceptionally well. How many are used cars sold each year? How many used cars are sold each year in India for every new car? We can state the answers to these and many more questions through these facts:
- In the FY2018, the used car market touched the mark of 4 million units of cars sold in a year. This was 1.3 times the number of new cars sold in India.
- According to the above data, 1.3 used cars are sold for every single new car in India. This means that the number of used cars sold in India every year is much greater than the number of units of new cars being sold.
- The total evaluation of the used car market in India was made at USD 24.24 billion in 2019. The growth rate observed is at 15.12% CAGR for the period of 2020-2025.
- The used cars industry is predominated by the hatchback and sedan segments. They account for more than 75% of the total number of used cars in India.
- The used cars market is witnessing a particular bloom in the luxury car segment due to the prices dropping very low. According to the experts, one can buy a luxury car that is 3-4 years old (pretty much like new) for as low as 40% of its original price. This is encouraging the service class people as well to opt for luxury in their cars.
The used cars market is at a rapid growth rate. Many of the considerable car manufacturers of India have started their own chain of used cars. For example, Maruti Suzuki’s True Value chain has been very popular among the Indians, especially the middle class.
Additionally, there have been many online platforms coming up through the years for selling and buying used cars. The market cap of these platforms is reaching billions every year.
What are the factors that are shifting the focus of the common man from new cars to the used ones? We shall discuss them below.
Factors promoting the purchase of used cars
A number of factors have been promoting the purchase of used cars over the new ones. With the growing standards of living of the ordinary people in India and the vanishing stigma around the purchase of used goods, the used car market is opening up an ocean of options for the people.
For more excellent safety and comfort, today’s India’s youngsters and middle class are opting for the used cars market. Studies show that a majority of the people of this class of the society prefer buying a used car instead of a new two-wheeler.
The price of a car depreciates by about 30% in the first year of use itself. Hence, for anyone buying a second-hand car that has been used just for a year, it proves to be a great deal. The car is sold for a much lower price, and the working conditions are exceptional!
The auto companies are also taking advantage of this demand for used cars and spreading their businesses in the same direction. Online dealers are also coming up so that people can have access to tons of options for used cars from all over the world.
Things to consider before buying a used car
While you can get a used car for much cheaper than its original price, there are certain things that you should keep in mind while shortlisting the right car for you.
The make and model of the car, along with the year of its original purchase.
The model of the car is obviously an important aspect to consider. You would definitely not like an obsolete model (except if you are a collector of vintage cars) whose parts and services are challenging to find. Also, pretty sure you’d want to get the latest edition of the vehicle that you can get. Hence these things should be paid attention to.
The number of kilometers that the car has run
It’s no secret that a car, like any other object on Earth, degrades in performance the more it is used. Hence the total distance that is covered by the car should be taken note of. The lesser the distance covered, the better would be the condition of the car.
The physical condition of the car
Do look for any dents or broken parts on the body of the car.
The original documents of the car
Make sure that the documents are original and up-to-date. Getting a shady car would do you no good in the longer run.
The price quoted
The price, of course, happens to be the most essential aspect. Make sure that you are getting the best product for the price that you are paying. You don’t have to settle for less in the used car market.
Conclusion
Used cars may not be everyone’s cup of tea, but once you get used to it, it’s really lovely, a treat worth indulging in.
