Slowdown not Affecting Used Car Market; Gaining Pace

Despite the slowdown in the car market, the used car market is growing at a good pace. Almost all the car makers have recorded a negative growth rate. On the other hand, this lowdown in new car sales didn't affect the second-hand car markets, as most of the buyers are giving preference to such vehicles, which has seen a boost in recent times.

The better facility for buyers, improved used cars quality, used car insurance and finance, and better value-for-money preposition are increasing the demand for second-hand cars, according to experts. The used car market is now more organized as earlier with more certified car companies joining the market along with various online used cars portals joining the race. The entry of numbers of new variants in the markets has shorten the ownership period of the vehicle. This clearly indicates an improvement in demand for buyers who prefer to go for a second-hand car.

According to the Nagendra Palle, CEO, Mahindra First Choice Wheels, “the business of pre-owned cars is getting organized with more certified cars in the market. As ownership of a car is getting shorter, people have started preferring a used car with improvement in quality. Buying a second-hand car is no longer a taboo.” The company has opened 250 used cars outlets by the end of this fiscal and plans to double the number by 2016.

Around 16 per cent of the total sold cars in India are pre-owned. More interestingly, the customers are now exchanging their old cars for used cars, unlike buyers sell their old cars to purchase a new car.

Source : DNA