Evolution of India’s Used Car Industry
The used car industry was earlier caught in a web of inaction, lack of transparency and organization and of course, lack of customer assurance which made used car buying risky and always a gamble of sorts. However, evolution with the times and the use of technology have contributed towards the success of the used car industry in the country. Before we move onto these new evolution, the factors behind the rapid success and growth of the used car industry in India should be examined briefly.
Firstly, it has to be said that people now prefer buying used cars in India since new cars are costlier than ever and rise in input costs are said to be the major reason behind the same. Most automobile companies have hiked prices hugely over the last few years and even entry level cars have gotten more expensive than before. Additionally, the Center has imposed an infra cess on cars as part of the Union Budget for 2016-17 which makes them more expensive while the additional 1% luxury tax on vehicles priced above INR 10 lakhs is another deterrent along with other taxes. Customers are fed up of paying huge taxes and registration and insurance costs which contribute towards making on-road prices balloon up to unimaginable levels.
Used Car Industry
These are major reasons behind the spurt in used car buying along with other factors like the Delhi-NCR diesel ban which restricts registration of new diesel vehicles with engines above 2, 000 cc and also measures like the odd-even rule in Delhi where even and odd numbered cars can only apply on even and odd dates respectively. Additionally, the growing transparency and reliability in the industry has also made people more confident with regard to buying a used car.
The biggest evolution has been an organized structure which has only been made possible by the few multi-dealership used car brands which are subsidiaries of successful Indian automobile brands. These chains have both online and offline avenues for buyers and this has brought in greater professionalism, organization, structure, transparency and assurance for buyers. You can now get pre owned cars (inspected and hence worry free) and find out the right prices of the same online if you wish. You can also get warranties on certified used cars along with insurance, transparent and clean paperwork and also clean and relevant transactions. You also get financing assistance and top notch customer support.
Of course, it goes without saying that all these evolutionary measures can only be witnessed at the multi-chain used car brands. This is because they have the resources and means to bring greater transparency and customer empowerment into this hitherto unstructured and unorganized industry. The used car market will evolve even more in the future and other players will soon have no choice but to follow suit.
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