By: Kunal Mundra, CEO India, CARS24
Today, consumers are more than willing to order large ticket items online, from the comfort of their homes, without having to step out. Businesses have adapted to this evolved outlook by addressing the need of the hour and providing means to make online shopping as convenient as possible, from 360-degree views to WhatsApp shopping and a lot more.
Post-pandemic, consumers are more price-conscious, and refurbished goods are no longer frowned upon, be it smartphones or cars. Consequently, today’s consumer views refurbished goods as an intelligent investment rather than a liability, which is especially true in the case of pre-owned cars.
After an unprecedented year that saw record e-commerce adoption across the board, online car buying has proved to be one of the hottest trends of the year. Nearly 40% of respondents would prefer to buy their next car online, suggests an IPSOS-CARS24 report. This is in line with the accelerated digitization rampant in the country and parallels the increased growth in e-commerce sales across the retail sector as a whole.
With pre-owned cars, affordability and quality are two criteria that have consistently plagued this industry. Today, however, with organized players entering the space, the pre-owned car landscape has rapidly changed. Refurbishment, Quality check, Best price, and Financing have become household terms in the industry, which was not the case a decade ago. With multiple technological advancements and refurbishments labs in place, pre-owned car buyers have the luxury of shopping for cars that are as good as new.
There is a stark difference between a refurbished car and a non-refurbished pre-owned car, in terms of quality, performance, and immediate costs. Organized players in the market identify this as a genuine concern and are addressing this by delivering high-quality refurbished cars. Refurbished cars bring a whole lot of convenience for consumers; they do away with the hassle of running back and forth between workshops to get repairs done, saving them a huge amount of time and effort.
Subsequently, consumers prefer purchasing refurbished cars that do not require immediate body & engine repairs. Especially, with the pandemic having pivoted consumer behavior to click and buy, the majority of buyers prefer a one-stop-shop for their purchases. As it stands, India is a lucrative market for refurbished cars with immense growth potential.
In India, car ownership currently stands at a mere 2% approximately, only two out of 100 people own a car on average. Owning a car is still a dream for many Indians. Lately, however, there has been a dramatic rise in the preference for personal mobility across India. More and more people now prefer to own vehicles for even everyday commutes.
With patience running thin amongst new car buyers owing to the ongoing chip shortage, consumers have turned towards pre-owned refurbished cars, which have acted as a catalyst for the boost in demand for pre-owned cars.
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.
