The Increasing Demand for Used Cars in the Automotive Industry
The used car market is increasing steadily over the past decade. This article discussing the increasing demand for used cars in the automotive industry
When it comes to the automotive industry, there are mainly two major players – manufacturers and retailers. Talk about the profits, and most of us would think that manufacturers are the ones that enjoy higher benefits. However, the latest statistics and reports on a global scale have shown that the retailers are, in fact, gaining momentum in terms of profit and yearly revenue. The numbers have escalated astonishingly over the past few years, and one of the biggest driving factors for these numbers is an increasing demand for used cars in the automotive industry.
In fact, the used car market in India is also a massive one and comprises a huge market share. While reflecting on the major reasons that drive the revenues of the used car market in India, one of the most vital factors that are above all the others is:
People are changing cars like any other commodity and the number of buyers of younger second hand cars is increasing with every passing day.
The economic growth, improvement in the living standards and an increase in the buying power are some of the reasons that make cars a necessity rather than being a luxury. As more and more people are becoming a part of the earning population, cars are being used in novel manners. In the following post, we will be discussing about:
So, let us explore all these points one by one.Used Car Market in India – An Overview:
The sector is witnessing a boom consistently and is not going to slow down any time soon, as per the latest reports and surveys. This is mainly because both the parties involved in the transaction, namely – the seller and buyer, find it a 'value-for-money' deal. The sellers sell their young second hand cars to get the down payment ready for the next car. The buyers can get an almost new car at a lower cost and fulfil their needs.
Further, the availability of reliable dealers for the used cars makes it possible to find second hand cars that are free of all the legal disputes and frauds. For example, the Indus Used Cars which is the most unique and the largest online platform to buy and sell used cars in Kerala. They also have used car showrooms in various places and have an incredible reputation in the automobile sector.
As the earning is increasing, the spending power is equally gaining strength and more and more people are buying used cars.
Now that we have completed an overview of the used car market in India, let us move ahead to find the various ways people are using used cars.Used Cars in India – Sectors they employ them:
Apart from personal use, people are using second hand cars for many other purposes such as:
The travelling and tourism sector is also witnessing a huge boom in India which has contributed fairly towards the rise in the demand for used cars.How to choose the 'right' second hand cars?
There are many factors that must be considered before buying a second hand car. Some of the most crucial ones are listed in the following section:
The younger the car is, the higher the price – it is the basic rule that determines the price of a used car; given that no other significant issue or damage is there.
The novices should opt for small and compact models that are easy to manoeuvre and drive. The bigger MUVs, SUVs, MPVs and sedans require a better judgement of space and manoeuvring in traffic and tricky road conditions.
In case you have a family that comprises of adults and kids, having a spacious car is the best option.
Small families will also eventually grow in numbers with kids etc and for such cases, spacious 5-seater cars are the best.
The Diesel models are bigger on maintenance as compared to the petrol ones. Hence, don't ignore this aspect while making the purchase.What is the future of the used car market in India?
The used car market in India is currently experiencing a boom and the dealers are reaping the rewards in various forms. It is being touted by the market experts that the trend is not going to stop anytime soon and it is safe to invest in bug numbers as well.
In fact, there are many companies that are having showrooms for used cars of their own brand. With the rise in the number of the professional or working population, the trend is going to be even more widespread and boost the used car market in India to unprecedented limits.
The used car market in India has recorded a 16% growth in the last year and has shown incredible potential for growth and revenues.
So, all in all, the used car market will experience a boom in the coming years and the coming decade is going to be game-changer for the automobile sector.
How big of an impact is going to be there, it is all under the wraps for now!
