Key Factors Driving the Growth of Used Cars in India

Did you know India's used car market is expected to grow at a CAGR of 16% during 2013-17? This is what a report titled “Booming Used Car Market in India Outlook 2017”, released by Research and Markets, had to say.

While greater awareness of global luxury brands is helping the new and used car industry grow, there are three specific reasons responsible for the growth of pre-owned vehicles in India, not the least of which are authorized used car dealers in Gurgaon and other parts of India.

India's Used Car Market – Key Drivers

1. Rising Income Levels - Robust economic growth is being witnessed in India, and the country is also seeing a concomitant rise in household incomes. These are two key factors that will increase consumer spending to $3.6 trillion by 2020, according to a report by India Brand Equity Foundation (IBEF).
2. Growing Organized Used Car Market – In the past few years, several used car dealers have come up all over India, be it in an upscale city like Gurgaon or a Tier 2 city like Guwahati. If you are looking to buy used Audi car, there is no dearth of cars for you to consider. What is important however is to get the vehicle from an authorized dealer only, one that can validate the quality of the vehicle after having conducted rigorous inspections of the vehicle on aspects like engine quality, interiors, and a host of other areas.
3. Easy Availability of Finance – A shot in the arm for India's aspirational middle class, looking to buy luxury cars, is the availability of easy financing options. The fact that one can credit easily and that too within a very short processing time is contributing to the growth of used car sales in India. So, for a customer, say in Delhi, not only is it easy and quick to get a car loan but also the price of used cars allows one to consider a higher end model. The best part is that with certified preowned cars being offered by authorized dealers, one also gains peace of mind.

From the issue of determining the fair price to that of assessing the quality of the purchase, there was always an element of uncertainty while dealing with the unorganized used car market, especially while buying expensive luxury cars. This is slowly changing with the emergence of authorized used car dealers in Gurgaon and the rest of India, who are providing certified cars to consumers after a thorough inspection on several quality parameters. This is bound to further fuel the growth of the used car market in India in the years to come.