The used car market in India is growing enormously. According to the latest edition of the Indian Blue Book (IBB) in Financial Year 2021-22, around 4.4 million pre-owned vehicles were sold in the country and this number is only going to go up. In fact, it has been projected that by FY2026-27, used car sales will account for around 8 million units. Post COVID-19 there is a strong affinity towards personal mobility and a major chunk of consumers are going for pre-owned vehicles. And the 2022 IBB report addresses some of defining factors involved in purchasing a used car in India.
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According to the analysis made by car&bike, more than a third of car buyers considered used cars due to value for money and affordability. For about 42 per cent of used car buyers, value for money was the key defining factor when it came to purchasing a used car, while for 32 per cent of total buyers, affordability was key.
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More than a third of car buyers considered used cars due to value for money and affordability.
Around 13 per cent buyers said that they decided to go for a used car mainly to get a first-hand experience of driving a car, before purchasing a new vehicle, whereas for 9 per cent buyers it was their secondary vehicle. And in case of the remaining 4 per cent buyers, it was due to various other unknown factors.
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The IBB reports also says that many buyers purchasing a used car are first-time owners, but this proportion has decreased by 11 per cent from previous year, showing some level of buyer maturity. According to survey results, used car buyers in non-metro cities are more likely to acquire a used car as their first vehicle than buyers in Metros.
