Is it the right time to buy pre-owned luxury cars in India?
Jatin Ahuja, Automobile Expert and MD & Founder of Big Boy Toyz, writes about the luxury vehicles market in India, with a special look at pre-owned luxury vehicles market.
An average earning India in late 20’s aspiring for a new car often steps back, either due to the ridiculously high prices or the ever-increasing taxes and import duties on the new automobiles. Pre-owned cars, on the other hand, are cheaper and easier to get hold of and make the dream come true.
But, is it the only reason why used luxury car market is growing at a speed double then the new vehicle segment? Let’s find out:
Market for luxury vehicles is rising. The flooding pattern is a result of higher dispensable incomes, better way of life and financial goals of aspirant buyers. A year ago, India noted highest number of premium vehicles being sold — around 40,000. That is about a 10x increment in 10 years. As per research firm IHS Markit, India's luxury vehicle market positioned 27th in 2017, a noteworthy hop from 48th situation in 2007.
However, pre-owned cars have turned into an alluring choice for buyer’s who are enthusiastic about driving cars from Models like jaguar Xjl, Volvo s90 , S Class , flying Spur among others. Expanding traction on online classifieds focuses to rising purchaser and vender intrigue. On OLX, there was a spike in the postings of premium cars (above Rs 15 lakh) from 8,000 units recorded in 2016 to more than 55,000 units recorded in 2017 on a month to month premise. Truth be told, purchaser enquiries have additionally boosted by 3x for premium vehicles over the past one year.
One of the key purposes for this striking development is the pre-owned luxury vehicles that have turned into an appealing alternative for the hopeful purchasers who dream about driving a BMW 3 Series over another Skoda Superb.
Generally, the market for pre-claimed luxury cars was majorly a success only in metro cities, yet because of local trusted dealers and online players, the market has extended. Today, purchasers across India can now enquire and purchase. The inventory comes intensely from metros while request is spread crosswise over smaller than usual metro cities. There is more than 33% of buying enquires for luxury vehicles originates from business sectors other than the home city.
There are more benefits for a buyer when they plan to move towards a luxury car segment. Currently, a pre-claimed luxury vehicle is a much better fit than a mid-size or small-scale vehicle — basically because a great deal of the stock of the former makes it to the market between 2-3 years, contrasted with 5-6 years for the latter. Every one of these patterns is demonstrating a change in buyers’ attitude towards purchasing cars under premium segments in India. With more noteworthy enthusiasm among purchasers, coming months could well observe beginning of the rise in this category even further. Additionally, considering the quick paced devaluing estimation of the luxury vehicles, the buyers are consistently in a hurry to upgrade by selling theirold models. This implies one can now undoubtedly get a sparingly utilized Audi A4 or a BMW at the cost of a top-end Honda City or a Hyundai Creta.