In luxury car market, used cars are registering double digit growth as people who are planning to buy premium executive sedans prefer used luxury cars over them
Indian luxury car market is witnessing huge growth thanks to improving economy as more people can afford these cars and among them used luxury cars are registering double digit growth compared to new luxury cars as people who are planning to buy premium executive sedans like Volkswagen Passat and Skoda Superb prefer used luxury car over them.
Sandeep Aggarwal, CEO and Founder of Droom e-car platform said that, the growth is driven by aspirational customers who prefer a 3 year old well maintained BMW 3 Series than new executive sedan models, this trend is growing especially in 2018 as used luxury cars are growing at least 50 percent faster than 2017.
Shubh Bansal, co-founder and marketing head at Truebil said that average ticket size of a used luxury car is Rs. 15 lakh, which is the price of a new high end sedan and most of the customers, who are in the age of 40s usually prefer used luxury cars and often lives in town close to metro luxury markets.
He also said that people in small cities like Kolhapur or Pune are coming to Mumbai to buy used luxury cars as it is one of the biggest luxury markets in India, but in NCR region customer sentiment is different as 40 percent of demand is for new luxury cars. In India, for every one new luxury car, 2 used luxury cars are sold.
One of the other things, which is contributing to the growth of used luxury cars is that depreciation of new luxury car is around 20 percent in first two years compared to just 12 percent in a mass market car, so customers can get excellent deal with used luxury cars which are just couple of years old and it is far better than mass market cars.
Most of the luxury brands in India have their own pre-owned cars section, which include models from other brand also and Mercedes Benz India registered more than 60 percent growth in used luxury car segment between December 2014 and December 2017 as the company sold over 12,000 units in this period.