Used cars trail new car sales in October, retail up just 5%-7%

[devikad]

Used cars trail new car sales in October, retail up just 5%-7%



As new car sales picked up speed this festival season and grew 18% Y-o-Y in October on the back of stellar deals for buyers , used retails were up just 5% to7%.

"There are very good deals available now on new vehicles and people are avoiding visiting physical retail outlets. So for used cars the average duration of ownership has increased from 54 to 60 months," said Sandeep Aggarwal, founder CEO, online portal Droom.

Of course, the festive sprint is visible in used cars and sales have been picking up month on month. "Used car sales have been good in October and our numbers are up 10% over last October and 15% compared to September 20," said Ashutosh Pandey, CEO, Mahindra First Choice Wheels. Part of the problem is supply.

"There is not too much inventory with dealers and some of the cars that are coming to the used car pool are not retail worthy," he added. Despite doing better than new cars during lockdown, the used market has not hit last October levels. Droom did business worth $61 million in September and $72 million in October but it is still down 20% from the $90 million of October 2019. The M-o-M increase though is clear.

"The seller and buyer intent on our platform have been increased to roughly 3X compared to pre-lockdown. In October we saw more than 10% rise in sellers over September 20," said Gajendra Jangid, co-founder & CMO, Cars24 said.

So what's selling best in used cars? With around 60% of first time buyers are opting for used cars, the "affordable hatchback has been the best performing category," said Amit Kumar, head OLX Autos India.

According to a just conducted survey by online platform OLX, 56% of those surveyed said they would want to buy a hatch (Alto, Kwid, Santro, Swift, Polo etc) while 44% said they wanted a bigger car and only 11% said they would buy an SUV. The reason: 63% of the respondents had a budget of just Rs 3 lakh to buy a car. As per industry data, the pre-owned car market outnumbers the new car market by 30% in volume. In FY19, the used car market crossed 4 million units.

Source: https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/used-cars-trail-new-car-sales-in-october-retail-up-just-5-7/79018142

[unavaughan]

This sounds really interesting. I wonder why it's so challenging to find a reasonably priced car in mint condition?

[swaggv]

Wow, it's interesting to see how the used car market is performing compared to new car sales. With all the great deals on new vehicles, it's no wonder people are opting for them and avoiding physical retail outlets. Personally, I recently found a car at a dealership in another state, and now I'm looking for a reliable car shipping company to transport it to me. While browsing online, I came across Cross Country Car Shipping (https://www.crosscountrycarshipping.com/), and they seem like a good option to try. Anyway, thanks for sharing this insightful update. By the way, I'm new here, so it's great to join this forum and be part of the conversation.

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