The changing demography in India is evident by changing taste of its youth. While, there is no doubting a fact that the country is currently, the leading consumer industry globally, the bulk of this consumerization is being diverted towards automobiles, gold and real estate. Nonetheless, the cost of real estate has meant that it is no longer an affordable option. At the same time, the deviation in commodity market has resulted in shattered consumer confidence. Thus, automobile industry stands out in terms of preference, affordability, predictability, etc. Having said this, here are 5 reasons that have boosted used car market in India –
• Troublesome public transportation – The public transportation in cities like Mumbai is crumbling under the pressure of rising population. People here have to go through lots of hardships travelling through local trains or public buses both in morning as well as evening. Secondly, the rising accident in railways is pushing people more towards viable modes of transportation like cars. Since, buying a new car proves costly people opt for used cars in Mumbai
• Rising income level – The next important reason that has contributed positively to used car market not only in metros but across India is the rising income levels of youth. The rise of information technology, logistics and e-commerce industry has only complimented this growth further.
• Verified used cars – Buying used cars in India is no longer about risking hard earned money. On the contrary it is more about prudent and wise investment towards comfortable living. Thanks to the rise of online web portals, buying resale cars has become extremely easy and convenient. These portals offer end to end services such as:
o Quality check
o Ownership transfer
o Loan, etc.
The one stop services for used car with complete ease and comfort has meant that this market is here to stay and flourish for decades to come.
• Affordability – The fourth important factor that has played a key role in emergence of resale car sector is its affordability parameter. These cars are cheaper by few lakhs when compared to new ones. People can get a good sedan used car for the cost of new hatch back. This not only adds to status symbol but also doubles up the satisfaction level. The lower cost means lower down payment and lesser equated monthly installments.
• Easy availability – The next critical factor that has been driving the sale of used cars in cities like Mumbai, Delhi, Chennai, Bangalore, etc. is its easy availability. People no longer have to go scouting door to door to find good used cars. They can simply log on to online used car portals like truebil.com and select the car of their choice. These portals enable the buyers to:
o Shortlist multiple cars at one go
o Provide the test drive option
o Facilitate the entire transaction so that everything goes off in smooth and seamless manner
o Help in paper transfer
o Have tie ups with several banks and housing finance entities for easy car loan options
o Ensure smooth insurance transfer from current to the new owner
o Offers only inspected, substantiated and fully verified cars
o Has more than 150 check points for used cars
o Does not include any accidental cars. Thus, buyers can transact with complete ease and in stress free environment
o Undertakes negotiation on behalf of buyer
o Ensures best value for money, etc.
All of these factors coupled with changing dynamics of the younger generation will only take the resale car market to new highs in the years to come by. Several surveys conducted globally have only seconded this fact!