Is Used Cars Market in India Flourishing?

Mar 02, 2017

Buying the first car is a huge step for most people in India as car is a basic necessity and also a big investment. And while going for the brand new wheels seem like the right step (the feel of new is incomparable), many first-time buyers are turning to used cars in India. The reason is simply getting more for less. So what is it fueling the used car market in India?

Benefits of buying a used car in India

Whether you buy from an individual or a dealership, you always get more features and space for less money. If you have a budget of 5 lakhs, you can buy a brand new hatchback like Hyundai i10, but you enter the used car market and easily avail a used D-segment executive sedan Honda Civic. Some other major benefits of buying a used car are:

  1. Cost savings
  2. No 1st-year depreciation (C and D segment sedans lose around 40% in first year)
  3. A wider choice of cars in your budget
  4. Flexibility to switch to another car faster

The used car market is no longer what it was a few decades ago. Buyer gets a certified used car that has been checked thoroughly (even by third parties), come with warranty as well as after-sales services.

Demand for used cars in India

The used car market in India is on a constant rise. One of the major factors for that is many car owners selling their old cars to buy a new one. In the recent years, the average ownership of a car has declined tremendously from about a decade or two to just 3-4 years. Other than short ownership period, increasing number of aspiring buyers, availability of certified used cars and easy access of finances are fueling the trend of buying used cars in India.