Why Used Cars Are Becoming Popular In Mumbai - Car Loan Blog - Tata Capital

Why Used Cars Are Becoming Popular In Mumbai

Mar 02, 2017

The auto industry is changing at a rapid pace. New cars are getting more expensive, making them a high-value purchase for the common man. With newer models regularly being launched, the availability of used cars in the market has increased. People sell off their old cars to buy the latest models in the market. This is good news for potential used-car buyers. A higher number of used modern cars are now entering the market, which are reliable and in good condition. This is makes it easier for used-car buyers to land a good deal without having to pay high prices.

Given the poor road conditions in Mumbai, it is advisable to buy a used car. Bad roads may cause steering system misalignment and may also damage the tires. Besides, the availability of used cars in Mumbai is quite high, making it a popular option in the city of dreams.

The following are the reasons why pre-owned cars are becoming Mumbaikar's favorite.

  1. Affordability
    Due to the ever-increasing rates, it has become expensive to live in this city. The prices of commodities have increased tremendously. This has made the cost of living in Mumbai high. Used cars are affordable and do not burn a hole in your pocket. Hence, Mumbaikars prefer used cars due to low upfront costs. Besides, the costs for registration and insurance for pre-owned cars are low, as well.
  2. Poor Condition of Roads
    In spite of various accidents due to potholes and bad roads, the BMC hasn't taken too many efforts to maintain roads. Bad roads may damage suspension and steering parts. Potholes also cause a car's wheels to misalign. As a result, the cost of maintenance increases and you may incur huge expenses. Experts would therefore advise to go for used cars to avoid high expenses.
  3. Organized Players in the Market
    The organized sector includes used car outlets, which not only have physical stores, but an online presence too. The used car segment is also witnessing the entry of local dealers in the organized market place. With a wide variety to choose from, it's become even easier to purchase used cars in Mumbai.
  4. Depreciation Benefits
    Depreciation is based on the value of the car. New cars begin to lose value rapidly in the first few years. Used cars, on the other hand, have lower value and, hence, depreciate slowly. They do not depreciate at a rapid rate, as compared to brand new cars.

The Future of the Used-Car Market in Mumbai

The pre-owned auto market is growing at a rapid pace with volumes of sales shooting up. Used-car dealers are reporting a huge increase in sales and profits over the months. Clearly, this trend is here to stay. No longer is a used-car owner looked down upon. Given the benefits that such vehicles have to offer, more people are opting for such cars. Also, with the popularity of a used car loan, many find it easier to buy a used car.