We have argued for long that while new car sales will take many months, possibly over a year, to reach pre-Covid-19 levels, the revival will be quicker in used car sales. Spinny, the online-to-offline retail platform for buying and selling used cars, is seeing an increasing number of first time car buyers as well as women buyers. Niraj Singh, CEO & co-founder, Spinny, said that the share in the percentage of first-time car buyers has increased from 35-40% earlier (pre-Covid-19) to 60-65% now. “It shows that people are switching to personal mobility, and because the purchasing power may be weak right now, many of them are considering used cars.” Public transport hasn’t fully opened in many parts of India, and some reports say that fewer people are using ride sharing. “Another trend is that the time taken to complete a transaction has reduced from the earlier 2-3 weeks to 3-5 days” added Singh.“In a way, it shows there is some sort of urgency to own a personal vehicle.”
These two trends, Singh said, can specifically be attributed to Covid-19. Spinny has seen a rise in the number of women buying cars on its platform; the percentage of women customers has doubled—from 10% in 2019 to 20% now. “We have seen a 400% rise in queries and home test drive request from women,” said Singh. “Owning a car is seen as the safest way of mobility. But due to the liquidity crunch, many customers, including women, are opting for used cars.” By August, Spinny expects to reach pre-Covid-19 sales numbers. “In July, we did about 85% of our original volumes.” The most demand in used cars right now, Singh added, is in the price bracket of Rs 2.5 lakh to Rs 6.5 lakh. “The demand for used cars beyond Rs 8 lakh has all but vanished, as of now,” he said.
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.