Here's Why Second Hand Car Sales Booming in India

Gone are the days when ownership of cars was a luxury. Today, as the economic conditions of the people are improving, their inclination toward private ownership of vehicles is also escalating swiftly. Hence, particularly across countries like India, the vehicle fleet is expanding swiftly. Perhaps it is also why the automotive industry in the country is expansive, comprising several prominent automakers and their active participation in widening their product portfolio & consumer base.

With the improving economic conditions, affordability is not a prominent concern among people. However, some consumer populations in the country still find the affordability of top models or the latest vehicles difficult. Yet, it does not mean their desire to buy cars is rested with such challenges. Understanding such concerns, the industry for second-hand cars is growing swiftly across India. People are increasingly making investments in second-hand cars & fulfilling their desire to have four-wheelers. Yet, it is not as easy as it seems. There are numerous aspects that a buyer must look after carefully before investing. After all, buying a second car can either be the best deal ever or the trap of the lifetime.

Understanding the Prominence of Second-Hand Cars

To put it together in simple words, second-hand cars or used vehicles are highly affordable than brand-new automobiles & do not come with extra costs. These cars may also attract car insurance at a lower price and offer plenty of perks to the users, acting as the next best thing to brand-new vehicles. While some might feel having cars are seen as a status symbol in society, other might have a desperate need for the same. It is where Second-Hand Vehicles are becoming popular and gaining swift momentum.

If such aspects have piqued your interest in Second-Hand Cars in India already, the following paragraphs have much more for your knowledge. Let us continue reading to learn more about the key aspects fueling the sales of Second-Hand cars and curating the fundamentals underlying the industry dynamics across India.

Key Aspects Stirring the Popularity of Second-Hand Cars

Just when you have made up your mind to invest in second-hand vehicles, there are several aspects that you must be careful about. Make sure you have a checklist, right from what your budget is, the type of vehicle you wish to buy, make & model, and color, among other specifications. In the same view, you may also look after the type of car insurance the pre-owned car had or one you wish to enroll for.

A country like India is demonstrating a swift rise in the vehicle fleet, where the advent of online platforms, like CarDekho, Cars24, and Droom, among others, has played a significant role in boosting sales. However, conventional channels like OEMs have not yet been put behind and still gotten themselves into the second-hand car industry by providing all safety measures, transparency, and negligible risks when a consumer is purchasing vehicles. It, in turn, gives automakers an edge over the unorganized market in India, witnessing an upward growth trajectory. For Instance:

Korean carmaker Kia is setting up a venture for Second-Hand Cars in India and plans to get dominance in the industry. The brand expects 2022 as a year when the cars could turn about three years old, and will be the best time to begin the used car business, particularly in the bigger towns of the country.

We know for a fact that purchasing a brand-new car is often an exhilarating thought, yet a second-hand car comes with its perks. Let us take a closer look at some of these advantages of investing in a second-hand vehicle than a brand-new one.

Provides an excellent value for money, facilitates affordability and savings for the customer
The minimal depreciation rate of the vehicle
Reduced registration fees, insurance premiums, and other fees related to the registration process
The vehicle is covered by a comprehensive assurance & warranty
The inflation rate is higher
Free installation of add-ons to your existing installation

Document Checklist for Buying Second-Hand Cars

Now that these perks are already attracting a substantial consumer base in India to buy second-hand cars, you must prepare a checklist for all the documents that you might need to buy these cars. Let us take a closer look into these aspects before confirming the purchase:

Certificate of registration
Purchase Invoice for the car
All documents for existing insurance policies
Records of the service history of the car
Forms- 28, 29, 30, 32, 35
Invoices for Road Tax
Pollution Control Certificates
Owner’s Manual

Once these documents, alongside other necessary deeds, are exchanged between the buyer & the seller, the purchase is made efficiently.

Wrapping Up

Observing the greater inclination of people toward private ownership of vehicles for convenient communication and as an improvement in living standards, the sales of second-hand cars are likely to accelerate rapidly throughout India. The same aspect shall also generate lucrative opportunities for the players to widen their service offerings in the country, stimulating the overall industry expansion.

Here's Why Second Hand Car Sales Booming in India