The used car market in India is growing faster than ever. According the recently released fifth edition of the Indian Blue Book (IBB) in Financial Year 2021-22 around 4.4 million pre-owned vehicles were sold in the country. Post the pandemic, there has been a surge in demand for personal mobility, and a lot of buyers are preferring pre-owned vehicles. Having said that, today’s used car buyer is looking for more than a well-functioning car with decent mileage on it. They also want value added services like warranties, financial assistance, digital purchase experience and more.
Also Read: Used Car Financing Becomes Increasingly Popular, But 70% Buyers Still Want To Pay Cash
The latest IBB report highlights this point extensively, offering insights on what exactly do Indian used car buyers want when it comes to the services?
Majority of car buyers are seeking things like warranty, financial assistance and virtual paperwork.
An analysis done by car&bike showed that 58 per cent buyer want a warranty with their used car, while 48 per cent buyers are want financial assistance. About 40 per cent buyer said they wanted 100 per cent virtual paperwork, whereas the same percentage of buyers wanted vehicle insurance. Around 32 per cent buyers said that they would want buyback guarantee, whole about 28 per cent buyers wanted 360-degree virtual inspection as a service. Additionally, 27 per cent buyers also wanted the vehicle to be certified by a third-party.
Also Read: IBB Report 2022: Top 10 Used Cars Purchased In FY2021-22
Interestingly, the demand for these value-added services is much higher in non-metro cities. The IBB report says that consumers in non-metro cities valued the option of extended warranty coverage or service more than buyers in metros. This has resulted in an increased proportion of consumers who want to purchase a certified car.
Also Read: Three Major Evolving Trends In India's Used Car Market
Consumers in non-metro cities valued the option of extended warranty coverage or service more than buyers in metros.
Furthermore, to entice such buyers in droves, organised used car platforms are also deploying the latest technology and innovations such as digital buying experiences, doorstep test drive and delivery, extended warranties, and easy financing alternatives. In fact, the research study also reveals that buyers are twice as likely to seek platforms that offer a complete transaction experience, including warranty, easy financing, and buyback.
