As Indians shunned public transport for private vehicles, the demand for second-hand cars soared during the pandemic, and for good reasons.
Used cars are reasonably priced, so you can easily afford one with your savings or a used car loan. Thus, second-hand cars are now within reach for a lot more citizens. So it’s no surprise many experts predict a steady growth in pre-owned car sales in the coming years.
Here are some interesting projections of the used car industry in 2022.
India’s used car market may reach 50 million USD by 2026
India’s pre-owned car market was valued at 27 billion USD in 2020. According to a study by Mordor Intelligence, it is expected to reach 50 billion USD by 2026. This number indicates that the used car industry will potentially register a CAGR of 15% during this period.
This rise comes as no surprise given the pandemic’s positive impact on the industry. Because of reduced income, buyers started looking for alternatives to brand new cars and pre-owned cars became the immediate options. Thus, also signalling a rise in the used car loan industry in 2022.
Additional Read – Market Trends Report on Used Cars Industry
The organized market segment is expected to register a CAGR of 22.79%
According to the same research, the organized segment in India’s second-hand car market is expected to grow at an accelerated pace. It predicted a CAGR of 22.79% from 2022 to 2026.
How so? Well, the organized sales market has seen unprecedented growth in the last three years, driven by increased sales of used cars in metro cities and a rise in online sales platforms. So, almost all prominent OEMs have entered the market.
Plus, the online used car sellers registered impressive sales during 2017-2019. Some have recorded a year-on-year growth rate of about 100% over the last three years.
This attention to transparency, convenience, and safety is especially favoured by second-hand vehicle buyers. Naturally, the organized sector of used cars is projected to boom in terms of market share.
The demand for luxury used cars is expected to grow
A few years ago, purchasing an expensive luxury car used to be a dream for numerous people. But this is changing as consumers can easily buy pre-owned luxury vehicles. Second-hand car loan industry trends suggest that more people are willing to invest in used luxury cars.
The major factors driving the growth of the used luxury car sales include:
- Heavy depreciation value of luxury cars
- A fast-growing young population
- Increasing disposable income of consumers
- Rapid urbanization
- Growing internet penetration in non-metros.
Additional Read – Should You Buy a New Car This Year End?
All trends point towards immense growth in the used car industry. If you want to purchase a used car, this is the right time. You now have plenty of buying options, the assuredness of quality, and attractive price ranges. What’s more, you can buy any used car of your choice, be it a hatchback, sedan, or SUV.
And, if you need help financing it, you can avail of Tata Capital’s second-hand car loans. We provide flexible repayment options, and you can use our used car loan EMI calculator to estimate an EMI within your budget. Visit our website to check your used car loan eligibility.