By Mr. Naveen Vashisht, Business Head – Used Car, AU Bank
In the current cash-strapped times, when the need for safer personal mobility is at an all-time high, used cars are proving their mettle to emerge as a strong option for safe and tension-free commute for a large set of customers who are mulling to become first-time car owners.
Used cars make a lot of sense and help fulfil ambitions of people eyeing the entry-level space of the market while sticking to a limited budget. With easy availability of finance from banks and lending institutions such as AU Bank, they become even more approachable and alluring propositions compared to their brand-new counterparts.
The Rs 300,000 price bracket is the one to be witnessing the maximum action in the used-car space, which has seen an overall growth in demand between 15 to 20 percent, due to the Covid-19 pandemic-driven need for personal mobility. The high agricultural yield this year has also given a fillip to used-car demand in the hinterlands.
With as much as 40 to 50 lakh second-hand cars sold in the country every year, the Indian used-car market is one of the largest in the world and boasts a size one-and-a-half times that of the new car space, clearly driven by India’s underlying potential of mobilising its masses, a majority of whom are looking for a value-for-money transportation solution for themselves and their families.
A pre-owned car offers a depreciated price that could be as much as 50 to 60 percent lower than a brand-new vehicle five years down the line, while still having enough life in its mechanicals to continue offering reliable service for a similar period going into the future. Moreover, for people who value rich features at a reasonable price, used cars offer luxury at a nominal cost. You could acquire a midsized sedan or compact crossover for the price of a new compact hatchback. Who doesn’t want to proclaim that they’ve arrived in life, isn’t it?
While one might be stuck in the conundrum of whether it is safe enough to buy a car used for all its mechanical upkeep, structural integrity and road-worthiness concerns, the emergence of new players leading to a marked shift in the market becoming organised, has allayed them all. From about 8 percent, the organised used-car space has grown in size to 20 percent, making customer trust the focal point of its business and proving to be a gamechanger in used-car retail.
So, with a detailed quality inspection that assesses the vehicle right to the last weld joint to ascertain if it was involved in a major accident, one can be doubly assured about the car they have shortlisted is a value buy. Add to that some breakthrough initiatives such as no-strings-attached return policies within a limited timeframe, and cross verification of the vehicle’s service history directly with the company-authorised workshops, and there is no way one can really go wrong. A used car is a win-win for you and your wallet.
Disclaimer: The opinions expressed in this article do not purport to reflect the views or opinions of AU Bank or its employees.