How fixed price assurance for used cars has been beneficial in ensuring fair value

Since the onset of the pandemic, used car sales have shot up by a massive 115% as compared to the pre-COVID levels, making it a promising segment in the ‘new normal’.

Updated: Nov 09, 2020 3:26 PM

 

2020 has seen a cascade of several unfortunate events, with the pandemic topping the charts in terms of adverse impact on the world. However, similar to the popular saying ‘Tough times often herald new opportunities’, the crisis has kickstarted an era of evolution. From a business standpoint, companies across verticals have been made to reassess their working models and adapt to the changing times by incorporating a slew of measures. For the mobility sector, the scenario hasn’t been too different.

The mobility sector is undergoing a massive transition. With public transportation ruled out owing to safety concerns, owning a car has become the ideal way to ensure safe and convenient commutes. But considering the overall liquidity crunch the country is facing, pre owned cars are a more viable option. They give the buyer the satisfaction and joy of owning a car without having to shell out a large chunk of their savings or avail loans at high rates of interest. Yet, buying a used car often comes with a lot of ambiguity in terms of the exact condition of the car, gauging the pricing, service history, etc., thereby creating a mediocre experience for customers and leaving a wide gap between the buyer and the seller.

To address this, burgeoning brands in the industry are now incorporating the fixed price assurance feature in their services. The fixed price model alleviates any doubts that may be present in the customer’s mind to give them ample confidence and allow them to fully experience the joy of purchasing a car. Here’s how the fixed price assurance model has been a game-changer for the used cars segment.

The Real Deal

At a time when the dark clouds of recession and economic downfall are looming over the world, people think twice before spending money as every penny counts. This means that customers become cautious about overspending or overpaying for the vehicle, resulting in unnecessary negotiations. But what if this loop of negotiations could be avoided while ensuring that customers get the best deal right away? This is precisely what fixed price assurance does. Using pricing data from market transactions, and detailed inspection reports, brands who utilize this model arrive at the best price a customer can get which is then fixed. The fixed price provides clarity and ensures that there is utmost transparency while buying the car.

Furthermore, customers also have the option of making informed decisions from the comfort of their homes and doing their research, and choosing a vehicle at their own pace. This makes for a safer, convenient, and delightful car-buying experience. The fixed price model strays far from the conventional ‘one size fits all’ norm that prevails in the used car market. Today, leveraging proprietary data-based pricing engines that consider a particular vehicle’s demand and supply data, brands are ensuring that a fair price for the car is decided on and fixed. Several market factors come into play while deciding a car’s worth such as new car launches, market sentiments, etc.

The fixed price assurance model also eliminates the need for middlemen or an additional third-party involved when customers purchase a vehicle. The dealing remains between the customer and the brand. Removing the need to browse through several websites to check for a fair price and the need for seemingly never-ending negotiations, fixed price assurance optimizes, time, and cost for both the dealer and the customer.

Safety guaranteed

The world is collectively facing a challenging time and ensuring the best practices of safety and hygiene remains the topmost priority for businesses and individuals alike. Often, when customers buy a used car, they may have numerous questions and doubts surrounding their purchase, resulting in multiple visits to the showroom. With fixed-price assurance, the need for second or third interactions or visits to the dealership is significantly reduced, making it immensely beneficial. Used car platforms are even going the extra mile to ensure home delivery of the vehicle and home test drives with the cars thoroughly sanitized for optimum safety.

The used car segment is gaining traction, growing at a breakneck pace due to skyrocketing demand. With tech-enabled features, players in the industry are leaving no stone unturned to deliver an impeccable car-buying experience to customers. The new world order will witness the prevalence of the used car market, only bigger and better than before.

Author: Niraj Singh, Founder & CEO, Spinny

Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.

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