There is a huge difference between buying a used car and purchasing a brand new car. While buying a new car the big parameter considered by the buyer is the brand, it’s after sales network and then comes real value. It’s not the same with a used car. While buying a used car it’s the listings that will indicate the rising demand for an Individual product, of course, the brand also plays a crucial role. For instance, a Maruti Suzuki or a Hyundai product will have more demand in the used car segment because of the availability of spare parts, efficiency and more availability in the used car space.
Buying a car remains an aspiration for the Indian middle class and are the second most important buying decision done by a family after property. A report on India Blue Book says that the pre-owned or used car market size is about 3.6 million units in 2017 that has gone up by 9% from 2016. Demonetisation did restrict the growth by about 6%. The report also further confirms that there are about 30,000 used car dealers in India.
In India, about 60% of the used cars sold are less than 5 years old that indicates that car owners are willing to change a car in 5 years.
Maruti Suzuki Wagon R
The key changing trend in the pre-owned car market is the rising demand for SUVs. Trends released by QuikrCars says that the SUV segment saw a 24% spike in demand in the pre-owned vehicle space. The report further confirms that the demand for compact SUVs including Maruti Vitara Brezza, Renault Duster, Hyundai Creta, and Ford EcoSport is steadily rising 70% YoY. Those opting to buy a used car have searched more for SUVs/MUVs over last year. Top SUVs searched were Toyota Fortuner, Ford Ecosport, Maruti Vitara Brezza and Maruti Gypsy. There were also strong searches on Maruti Eeco, Maruti Omni.
Despite the rise in the demand for SUVs, sedan sales in the used car market have remained constant. In fact, demand for smaller compact sedans like Maruti Suzuki Dzire, Honda Amaze has increased by 11% in the recently concluded quarter. Overall, Maruti Suzuki, Honda and Hyundai were the most searched brands with Swift and Honda City being the most popular car
models on QuikrCars. Used car buyers are also searching more for diesel cars followed by CNG powered cars.
Many experts and buyers do believe that buying a second-hand car, especially for first-time buyers. The cost of a new car depreciates by about 25-30% the minute its left the showroom. Expect the sales of the used car in India to continue to boom and post double-digit growth.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.