Used automobile gross sales develop 4x new ones, Auto Information, Automobilnews
Organised used car sellers like Mahindra First Selection Wheels, Droom and OLX say the primary driver for that is that used automobile enterprise will not be as depending on financing as new automobile market and used automobiles at the moment are a greater worth proposition following common worth hikes taken by automobile corporations.
“Gross sales of used passenger automobiles are transferring at a 10-12% clip in This fall and the expansion was sooner earlier at about 15%,” stated Ashutosh Pandey, CEO, Mahindra First Selection Wheel. The explanation, he defined, is that there’s a money crunch out there and new automobiles are getting costlier. “In used, for a similar worth you get one class greater car. For Rs 5 lakh, as a substitute of an Alto or Santro, prospects are on the lookout for a used Honda Metropolis,” stated Pandey.
This demand, he defined, was coming extra from smaller cities the place used automobiles are purchased on money upfront foundation so the liquidity crunch in auto financing is much less related in these segments. “Mortgage penetration remains to be a lot much less in used automobiles,” stated Pandey.
What makes used automobiles a great deal is the worth differential, added Sandeep Aggarwal, founder and CEO of on-line platform Droom. “On a median, a mint situation used automobile enjoys 40% arbitrage in comparison with similar mannequin new automobile,” stated Aggarwal.