The economy in Indian has significantly improved over the last 5 years which has given rise to people becoming more alert to smarter investments. One of the fastest growing investments in the country has to be in the shape of automobiles. But while there has been a drop in the new car segment, the second-hand market seems to be thriving. So, what exactly does the used car market have to offer that has got everyone so excited? Let’s dive deeper and find out.
Whether you’re an experienced businessman or an up and coming professional, a car is something you dream of owning – even before you reach the legal driving age. The thought of driving down the streets in a shiny new car is something that excites us all, but as time goes on, people have become smarter and therefore looked to 2nd hand cars rather than brand new models – not only to save money but for a number of different reasons.
Here are some of the reasons behind the sudden demand for pre-owned vehicles:
Price Hike
Buying a car is a big investment, even if it’s a small car. No matter what the brand, model, or design, most people end up spending more than what they expected in a new car. And with the prices of new cars consistently increasing, the option for a used car seems all the more enticing. The cost of a second-hand car is almost a fraction of what a new car would cost which means you save a lot of money and get a vehicle that performs well and looks good. For example, if a new car has a price tag of 35 lakhs, the same model after 2-3 years will cost no more than 10 – 15 lakhs, which means you can save about 20 lakhs for an almost new car. Read on to find out how this is helpful when it comes to premium or luxury models.
Better Value
While a new car means new parts that work without a hitch, it also means you have to pay a premium price for it. Second-hand cars, the ones that are 3-5 years old, also offer parts that are in perfect working condition but, at a much lower cost than a new model. Today’s generation has realized that with used cars, they can get maximum value for their money rather than hoping that an expensive new car will pay off in the future. Whether it’s a 7-seater SUV or a 2-seater sports model, a second-hand version will give you the same specifications for less than half the cost.
Luxurious Options
Brands like Mercedes-Benz, BMW, Audi, Jaguar, and others are considered premium and luxury brands because they offer top-tier features and materials. While a new car from these brands would be nothing more than a dream for the working middle class in India, a pre-owned model would be more than an achievable dream. Many premium car owners choose to update their lineup regularly which means they sell their older models after a couple of years and this brings their prices down significantly. These cars can then be purchased as second-hand vehicles at a pocket-friendly price rather than a pocket-emptying one.
Shorter Ownerships
As described above, people who buy cars are looking to upgrade or update their garages with newer models continuously. Unlike previous years where people would hang on to a car even when the doors were almost falling off, today, owners shift from one car to another within 5-8 years from purchase – sometimes even sooner. This shortened ownership period has led to people opting for second-hand cars as a way to save money while keeping up with the latest models. The need for spending more money on a new car for about 5 years only makes very little sense and therefore, potential buyers are looking to used cars instead.
Price Difference
Finally, the most important, and the most obvious reason behind this sudden increase in used cars is the massive price difference between new cars and pre-owned models. Whether you’re looking for a second hand car in Kolkata or in Bengaluru, the cost of the car will most definitely be lower than the cost of a new car in the market. So, if people have an opportunity to save some money while buying an almost new car, the chances that they will do so is unsurprisingly high.
These 5 reasons are only some of the most important factors behind why people are looking to used cars inste;ad of new ones in India as well as around the world. When you can get a practically new vehicle that performs well and comes at an affordable rate, it is hard to deny the fact that pre-owned cars are the way to go in today’s market.
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