Pre-owned luxury cars are expecting a huge demand in 2021 and upcoming years. In this article, we try to dissect the factors affecting the rise in demand, the economic slowdown due to the pandemic, the presence of dedicated organized players in this segment, and future trends of the pre-owned luxury car market in India based on present demand figures. Since 2015, luxury car manufacturers have shifted their focus on the evolution of design and technology to cater to the needs of this dynamic market. They have understood that intensive R&D is the only way forward towards sustainability. World governments have also prioritized climate change and the effects of the automobile industry on our climate. Let’s take a look at how the future looks for the pre-owned luxury car segment in India:
A) Used Luxury Car Demands are on the Rise
The Indian luxury car market has evolved by leaps and bounds in recent years. Surely the market slumped downwards due to the ongoing pandemic, but the rise in used luxury car demand proved to be a silver lining. The economic slowdown has pushed people to search for more affordable, second-hand luxury cars amidst the pandemic and this trend is expected to continue in coming years. One of the major reasons, besides the economic slump, is the need for personal vehicles to cope up with the strict social distancing norms in place.
B) The Main Reason for The Rise in the Pre-Owned Luxury Car Market
The main reason for the rise in the pre-owned luxury car market is the economic slowdown due to the Covid-19 pandemic. People have become more cautious with their spending habits and they intend to spend money on more affordable used luxury cars as compared to new ones. The used luxury car market makes up about 18% of the total market share by the automobile sector in India. This is definitely bound to go higher as relaxation in taxation and digitization of the buying experience (virtual showrooms) has also given a push to the sales.
C) How you Should Find the Right Place and Dealership to Buy
Dealerships make extensive use of social media marketing today to increase their sales. In the past, customers had to spend a lot of time searching for reliable dealers to purchase a used luxury car. Nowadays, the dealerships are right at the tip of your fingers! However, this has also encouraged many fraudulent activities. Thus it is important to look carefully into the dealership profile, talk to previous customers and look for their sales figures. Reliable and trustworthy dealerships will always share information with you without any prejudice or bias. They will also go to great lengths to help you find the right product because customer satisfaction is of primary importance for them,
D) Future Demand of Used Luxury Car in India
As per a data analysis, online selling platform OLX witnessed a 20% increase in used luxury car sales between February and July 2020. This time period saw the country go into lockdown and open up after 3 months of crippling economic conditions. This trend is likely to continue in coming years, as the organized players project growth of 35% to 45% sales increases year-on-year basis. Interestingly, Mahindra First Choice Wheels, which is one of the most prominent national pre-owned car dealers, reported that the inquiries for pre-owned luxury cars had increased by almost 50% from Tier II and Tier III cities in India.
E) Maintenance of a Used Luxury is Very Important
A used luxury car is easier to maintain nowadays because of the upgrades in software and electronics. Luxury car manufacturers always try to produce the perfect vehicle and this hunger for excellence reflects in their products. Before 2010, maintaining a used luxury car was a tedious task due to the non-availability of spares and lack of skilled service professionals. The service center network was also not quite wide and was restricted to metropolitan cities. As time has passed and demand for luxury cars has risen in Tier II and Tier III cities, the after-sales service network is widening day by day. When it comes to maintenance of a used luxury car, the recent growth in the after-sales service network and addition of dedicated dealerships have made it easier for customers to take care of their ride.
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