Why Most People Prefer Used Cars instead of New Ones?
Unprecedented rise in pre-owned car market in India is the direct outcome of sluggish economy. India’s leading online company for posting the particulars about new and used cars, analyses that increase in the prices of fuel as well as new cars have prompted for caution to many first time car buyers as they do not want to invest much. So majority of them settle for a pre-owned car of less than Rs. 2 Lakh.
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They have recently concluded its exclusive and elaborate study on the online behavior of buyers of pre-owned cars in the country. According to the study, the buyers are only willing to spend maximum of Rs. 2 Lacs on the purchase. The deliberate trend shows that 27% of the buyers are ready to spend an amount ranging between Rs. 1L to Rs. 2L, 14% of the buyers want to spend between 0 to 1L. 20% buyers are willing to pay Rs. 2L to 3L, 14% to spend Rs. 3L to 4L and merely 9% of the buyers want to spend between Rs. 4L to 5L on a pre-owned car.
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As per Gaadi’s report, most preferable cars in the used car segments are Maruti Swift (7.4%), Maruti- Alto (7.1%), Tata- Indica (6.5%), Hyundai- Santro (5.5%), Maruti Wagon R (4.5%), Honda City (3.7%), Maruti 800 & Hyundai Accent (3.6%), Maruti Zen (3.3%) and Hyundai i10 (3.2 %).
The statics also confirms that Hatchbacks are preferred over any other segment of cars in used car market. Covering 54% of the Indian car market, Hatchback leads the chart. Sedan is next in popularity to Hatchbacks with market grasp of 28%; MUV and SUV each covers 6% and 7% on the wheel.
We also analyses that in terms of transmission preference, 92% of the used car buyers choose manual transmission over automatic transmission. Mere 8% of the used car buyers are estimated to go for automatic transmission. Moreover, majority of the used car buyers are from big cities like New Delhi (16%), Bangalore and Chennai (15%), Hyderabad and Mumbai (11%), Pune (7%) and Kolkata (3%).