Used car companies such as Spinny are experiencing heavy demand for vehicles priced between INR 4-6 lakhs these days. According to Spinny, this interest has not varied owing to the Corona pandemic, and it was the same prior to lockdown as well.
The country’s leading automotive manufacturer, Maruti Suzuki, is registering higher sales from True Value, its used car division, than from its new car retail arm. While the demand is certainly shifting towards used cars, people are also holding their cars back longer now, due to which sales are not as high as they should be.
Cost of mobility
Tremendous importance is being given to personal mobility ever since the pandemic struck. However, no one is really keen to spend a bomb on it; all consumers really want is to get transported from one place to another, and this job can be done really well with the help of a used car.
Two wheelers owners rejoice!
A second hand car is an excellent idea for two wheeler owners to upgrade themselves from two wheels to four wheels. Social distancing has become the new norm, as a result of which many users would naturally want to make that switch.
Apart from the above, there are number of young users who had made ride sharing as a way of life for themselves to their offices. Now these users would gradually move towards purchasing their own cars, and are likely to gravitate towards used cars across India. This generation missed buying its own car thus far, and will now be able to do so.
Helpful government policies
Certain government policies are also helping in the sale of used cars. For example, diesel cars can no longer be run for a period more than 10 years in Delhi, which means owners would naturally look to sell their cars after they have crossed 8 years. This has already shown an increased supply of cars in the market.
Need for cash
Old cars are being sold by families for the sake of cash. Since second and third cars are no longer being used, they are occupying unnecessary space in garages and apartments. Instead of having to spend much on repairs, millennial couples are considering the purchase of used cars instead.
Shift in demands
SUVs have always been in demand and the current situation is no different. However, the small change taking place now is that people are enquiring more about entry level SUVs instead of the luxury models. Also, they are willing to buy a slightly older variant of the same model of car. For example, Honda City has been a very successful sedan in India since more than a decade. The idea of purchasing a 5-year old City appeals more to a buyer than a 2-year old City.
Companies are having to work hard to source vehicles for trade-ins now. All contacts are being brought to use in order to increase the stock for used cars. In the long run, this is helping companies have exactly the number of vehicles consumers need, which is a healthy situation.