CHENNAI: When Dilip Singh was seeking to promote his seven-year-old SUV whose odometer had clocked practically 1 lakh km, he was stunned to search out that he managed practically 70% of the price of the automobile.
With new automotive costs hovering over the previous couple of years, the worth of used automobiles has additionally gone up. In the final two years, the typical ticket costs in the used automotive market has gone as much as 6-6.5 lakh from Rs 3-3.5 lakh, mentioned Vinay Sanghi, CEO, CarTrade group “Since new car ticket size has also gone up by around 30%, it’s spilling over to the used car market too as in all types of cars, people opt for buying the top-end variant,” he mentioned.
Used automotive entrepreneurs say the demand pull means a barely older SUV is offered for the worth of a hatch. “Currently, used SUV prices can start from as low as Rs 3.5 lakh while hatchbacks prices can start from Rs 2 lakh only,” mentioned Gajendra Jangid, co-founder and CMO, CARS24 Services.
Compact SUVs have turn out to be high attracts, and in the luxurious area particular fashions just like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Series are notably standard, mentioned Niraj Singh, founder and CEO of Spinny. The platform’s high fashions vary from just below Rs 2 lakh to Rs 7.5 lakh. While the Grand i10 begins from 1.5 lakh, a Baleno is priced between 4.7 lakh and Rs 7.1 lakh, whereas a used Kwid is offered from round Rs 2.49 lakh to Rs 4.9 lakh.
“The new car product mix has been changing in favour of SUVs which are pricier and these have started to come to the used car market as well. Also, many new entry-level car buyers are preferring to buy better equipped, bigger B-seg used cars at the same price. This has also led to the decline of the entry level segment which has not seen any new offerings,” mentioned Ravi Bhatia, president, JATO Dynamics The used passenger automobile market is presently estimated at 5.5 million models, rising 10-12% yearly, in comparison with the brand new PV market of simply over 4 million models.
What can be serving to is straightforward availability of finance. CarTrade, which acquired OLX final 12 months, as an example gives a financing market for used merchandise each auto and non-auto. Typically, second hand automotive finance comes at the next price of 11.4-15% in comparison with 8.2-10.5% for brand spanking new ones.
That development can be true for used two wheelers which is witnessing the form of premiumization that the passenger automobile market goes via.
“There is growing demand for higher end two wheelers including Royal Enfields and Pulsars with a 30-40% rise in ticket sizes in the last 2-3 years,” mentioned Sanghi of Car Trade. Part of the rationale for costs firming up is the demand bounce again, he added.
With new automotive costs hovering over the previous couple of years, the worth of used automobiles has additionally gone up. In the final two years, the typical ticket costs in the used automotive market has gone as much as 6-6.5 lakh from Rs 3-3.5 lakh, mentioned Vinay Sanghi, CEO, CarTrade group “Since new car ticket size has also gone up by around 30%, it’s spilling over to the used car market too as in all types of cars, people opt for buying the top-end variant,” he mentioned.
Used automotive entrepreneurs say the demand pull means a barely older SUV is offered for the worth of a hatch. “Currently, used SUV prices can start from as low as Rs 3.5 lakh while hatchbacks prices can start from Rs 2 lakh only,” mentioned Gajendra Jangid, co-founder and CMO, CARS24 Services.
Compact SUVs have turn out to be high attracts, and in the luxurious area particular fashions just like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Series are notably standard, mentioned Niraj Singh, founder and CEO of Spinny. The platform’s high fashions vary from just below Rs 2 lakh to Rs 7.5 lakh. While the Grand i10 begins from 1.5 lakh, a Baleno is priced between 4.7 lakh and Rs 7.1 lakh, whereas a used Kwid is offered from round Rs 2.49 lakh to Rs 4.9 lakh.
“The new car product mix has been changing in favour of SUVs which are pricier and these have started to come to the used car market as well. Also, many new entry-level car buyers are preferring to buy better equipped, bigger B-seg used cars at the same price. This has also led to the decline of the entry level segment which has not seen any new offerings,” mentioned Ravi Bhatia, president, JATO Dynamics The used passenger automobile market is presently estimated at 5.5 million models, rising 10-12% yearly, in comparison with the brand new PV market of simply over 4 million models.
What can be serving to is straightforward availability of finance. CarTrade, which acquired OLX final 12 months, as an example gives a financing market for used merchandise each auto and non-auto. Typically, second hand automotive finance comes at the next price of 11.4-15% in comparison with 8.2-10.5% for brand spanking new ones.
That development can be true for used two wheelers which is witnessing the form of premiumization that the passenger automobile market goes via.
“There is growing demand for higher end two wheelers including Royal Enfields and Pulsars with a 30-40% rise in ticket sizes in the last 2-3 years,” mentioned Sanghi of Car Trade. Part of the rationale for costs firming up is the demand bounce again, he added.
