Surge in trend for personal mobility spurs demand for preowned cars

People who have been delaying buying a new vehicle are choosing to buy a preowned one at a much more affordable price with an array of models to choose from, that they were sceptical to afford earlier.

For representational purposes only
For representational purposes only

There is no denying that the Covid-19 pandemic has impacted our lives and society as a whole. While it has disrupted several industries, it has also proven to be a catalyst for growth for many and the automobile industry is no more an exception. Though the Covid-19 crisis has had an exacerbating impact on the new car segment, the preowned car market has grown exponentially. This is majorly because of the rapid shift in mobility landscape in metro as well as non-metro cities.

With social distancing norms and economic slowdown, a large populace is considering personal mobility solutions a cost-effective and safe mode of transportation. This has led to explosive growth in the sale of preowned cars. According to the stats – the used car market in India is expected to grow at around 12-14 percent in the next few years and is projected to reach a size of over 70 lakh vehicles by 2025-26, up from 38 lakh vehicles in 2020-21. As the country continues to witness another wave of Covid-19, it is projected to grow further.

Affordability as a key driver

A large majority of the Indian population relied on public transport before the Covid-19 crisis due to its affordability. Considering the necessity to travel safely, people are looking for effective mobility solutions, thereby, leaning towards preowned vehicles for their affordability and availability. In fact, many people who earlier could not afford to buy premium or luxury cars are now opting for their preowned versions due to the affordability factor. Preowned vehicles have not only proved to be value for money but also empowered people from different strata of the economy to own personal vehicles.

Change in consumer behaviour

Over the last few years, the automobile industry has witnessed a rapid shift in the behaviour and aspirations of its customers. The rise in disposable income, increase in first-time buyers and the global pandemic have led to an evolution in consumer behaviour. From shorter ownership periods to an increase in price-conscious consumers, the automobile industry is gearing up on all fronts to meet the changing demands of its consumers. As consumers become price-sensitive, preowned cars seem a lucrative option to them. Furthermore, there are logical reasons for first-time buyers preferring preowned vehicles over new cars, thus giving rise to the demand for personal mobility and preowned cars.

Also read: Future of Mobility Summit 2022: EVs Are The Way Forward For Sustainable Mobility

Restricted use of public transport

Due to the pandemic, large swathes of people who relied on public transport could no longer hail a bus or catch a metro. Social distancing norms, lockdown restrictions and health consciousness barred them from using public transport. This gave rise to a demand for personal mobility, given the safety and reliability. This trend would continue to grow even after the pandemic subdues as people have become more health-conscious and are likely to avoid crowded transport. As a result, there is a steep rise in the demand for pre-owned cars in the cities. People who have been delaying buying a new vehicle are choosing to buy a preowned one at a much more affordable price with an array of models to choose from, that they were sceptical to afford earlier.

Easy financing options

In the aspiring car owners’ market – whether new or used, easy financing options serve as the cherry on the cake. Many fintech companies and banks are coming forward to fulfil the dream of aspiring car owners by delivering seamless financing solutions. With new and right financing options, customers gain a seamless buying experience with low-interest rates, increased payment tenures, quick approvals and paperless processing. As a result, car buying has become an extremely simple and affordable process.

Key takeaway

The Covid-19 pandemic has undoubtedly disrupted several markets, but it has also fast-tracked the growth of many new ventures and businesses. The preowned car market, which was already growing, has moved on an exponential growth trajectory. Driven by its affordability, easy financing options and the emergence of online aggregators, the preowned car segment has become the answer to millions looking for personal mobility solutions.

Author: Vaibhav Sharma, Founder & CEO, CarzSo

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.

Discover the latest in the auto world with new cars and new bikes, explore upcoming cars in India, and find your perfect match with cars under 5 lakh, 10 lakh or 15 lakh. Stay updated with the latest auto news and the rise of electric vehicles.

This article was first uploaded on February twenty-one, twenty twenty-two, at thirty-one minutes past six in the evening.
Market Data
✕
Market Data