Wondering what the used car market trends look like before you buy one? Learn all about them below.
The used car market in India is currently growing at a compounded annual growth of 11%, and it will only reach newer heights in the future. Given that the market is rife with plenty of options, now is the perfect time to invest in a pre-owned vehicle.
Used car market trends 2022
#1 Pandemic induced personal mobility preferences
Since the pandemic began, there has been a significant rise in the demand for personal transport, thanks to increased health safety concerns in metro and non-metro cities. Of course, this means greater demand for affordable personal vehicles. And pre-used cars fit the bill just right.
Along with being more affordable than their first-hand counterparts, pre-owned cars also open the auto purchasing space to people from low-income groups. Besides, loan offers with competitive used car loan interest rates are flooding the market.
#2 Change in customer preferences
The auto market in India has always been a price-conscious one. And used cars fit in just right. They are usually available at a significantly lower price, and they benefit from a greater GST rates differential. Customers today are also open to buying pre-owned cars because they are aware that the performance of a new one goes down by over 30% in the first year of purchase itself. What’s more, today, customers will only hold on to a vehicle for four years or less before switching to a new one with more advanced features.
All of this makes a used car is a better purchase option for the average Indian since it takes care of purchase costs while still providing utility and value. Considering buying a pre-owned car in the future? Finance it with a used car loan!
Additional Read – Some Projections for the Used Car Industry in 2022
#3 Digitisation in buying
Automotive startups are backing up their offline outlets with a reliable online presence, enabling people from different cities to buy used cars after a thorough inspection. What’s more, online dealerships also have their checklist to ensure only quality products are sold, and they offer warranties to alleviate any post-sales concerns.
This trend in digitisation is sure to pick up in the coming year, and we will see more startups aiming to increase transparency in the second-hand car market. Naturally, we can expect greater market demand for used cars too.
#4 Legacy players generating interest
With legacy players entering the used car market, customers can connect to auto manufacturing companies through their authorised channels before making a purchase. This makes purchasing used cars easier. This trend will boost the demand for pre-owned cars sold directly from auto company channels in the future.
Additional Read – Market Trends Report on Used Cars Industry
The used car market will reach newer heights, thanks to the changing customer trends, the entry of legacy players, and a range of other factors.
Looking to get a pre-owned car in the meantime? Finance your purchase with Tata Capital. We offer loans at affordable interest rates and flexible tenures too. Can’t choose the right loan tenure? Useour used car loan EMI calculator to customise a suitable EMI plan.