Luxury cars are ever fascinating to us since their introduction to the Indian market. With increased visibility through the internet and social media platforms, luxury car manufacturers have started attracting more and more people with dynamic marketing campaigns.
Pre-owned luxury cars have particularly garnered more customers in recent times because of affordability and reliability on the after-sales service center network. It is true that with so much information available online and access to that information, more people have started showing interest in buying second-hand luxury cars on sale. It is, therefore, recommended to consult an expert in this field to verify the information while choosing a pre-owned luxury car. Let’s take a look at things to keep in mind before buying a used luxury car.
What is a pre-owned luxury car?
A pre-owned luxury car is a used car that is inspected thoroughly by dealerships before selling them. The difference between a pre-owned and a used car is the certifications. Many dealerships in India, like Cars24, Mahindra First Choice, Big Boy Toyz, inspect and run checks on the luxury rides coming in their workshops. The checks and inspections are done under expert mechanic supervision, and a certificate of fitness is issued to every ride. This process enables the customers to directly walk into their showrooms and purchase a pre-owned luxury vehicle like they would have bought a new car.
The dealerships offer the best deals and extended warranty too in some cases. Moreover, new dealerships are entering the local markets, which offer a better range of services for customers.
Why are pre-owned luxury cars becoming more and more popular year by year?
There are a number of reasons why pre-owned luxury cars are becoming more and more popular. Industry experts are optimistic about further growth even through the Covid-19 pandemic because of the following reasons:
Till 2015, the pre-owned car segment was unorganized, and no trustworthy national dealer was available during that time. As time went by and companies started to focus more on the needs of the customers, new, organized dealerships and dedicated teams sprang up to cater to this particular segment. The growth jumped by nearly 10% in the last 5 years.
Today, the ownership period of luxury cars has reduced by almost 2-3 years. Car manufacturers started introducing new, improved models at a faster pace, which in turn has decreased the rotation time period. Customers typically go for a 4-year-old vehicle today compared to 7 years (as per demand data in 2015) in the last 5 years. With so many vehicles in the market and options available, customers have started exploring these options quite aggressively.
Internet and social media platforms have made it possible for luxury car enthusiasts to gather as much information as possible. The extensive research, easily available data from manufacturers themselves, automobile review platforms all combined have boosted the growth of the pre-owned luxury car market in India. Better visibility means better reach, and better reach means better sales figures.
What is the scope of the used luxury car market in 2021 and the upcoming year, and why?
The pre-owned luxury car segment has a market share of almost 18% in the Indian market. Due to the ongoing Covid-19 pandemic, stricter social norms are in place, and overall economic activities have gone down. In such a scenario, the demand for pre-owned luxury vehicles will rise. Moreover, since the introduction of stringent social distancing norms, the demand for personal vehicles has also gone up. All these factors combined, the scope of the pre-owned luxury vehicle market will surely widen in the upcoming years. Since India is a price-sensitive market, luxury car manufacturers have tried to offer their vehicles at competitive pricing by setting up local manufacturing and assembly plants. It has boosted the market sentiment, and since there are more cars in the country, their reusability has increased all the more. Projection patterns witnessed a rise of almost 10% in sales in the year 2020 itself and are bound to increase in the upcoming years.
Why Indian car buyers prefer to buy a used luxury car over a new one?
Indian car buyers today are more informed and tend to make more educated choices when it comes to buying a car. The pre-owned luxury car segment witnesses a rise due to a number of factors:
A luxury car will definitely have more features as compared to a normal premium car. Since getting more features and comfort is affordable, buyers will move to a pre-owned luxury car.
Shelling a few extra bucks will enable you to have access to a high-performance vehicle. Instead of going for a budget car, one can easily get a value-for-money high configuration vehicle with long-term returns.
A second-hand vehicle always has lower depreciation rates as compared to a new luxury car. That way, depreciation cost becomes stable for a more extended period of time
Pre-owned luxury cars have gained more popularity because of easy financing options available in the market. New dealerships with trustworthy names behind them have given the required stimulus for pre-owned luxury car financing in India.
Reliability is one area that cannot be overlooked while buying a car. The luxury car manufacturers make it a point that you don’t have to worry about the reliability of their product, given the extensive R&D behind the technology.
How to stay away from scammers in the used luxury car market?
With so much information making rounds on the internet, it is easy to get confused while buying a pre-owned luxury car. Many scammers take advantage of this and claim to be experts in this field. Their suggestions and marketing tactics might look reliable at first, but you might end up losing money if not paid attention. There are few tips to stay away from scammers in the used luxury car market:
- Avoid getting into the trap of incredible deals. Luxury cars are in no way cheap, be it new or used. Scammers would try to offer unimaginable pricing and dupe you.
- Always ask for papers first. There are high chances that you might not legally sell the car on the market.
- Never accept any requests for any advance payments for booking. There’s no such thing as a booking amount for pre-owned cars.
- Try to find the real owners beforehand to verify the existence and fitness of the car on sale.
- Always take a test drive before committing to any purchase. Chances are, scammers can sell you vehicles that are unfit or have been involved in accidents previously.
- Get a mechanic you can trust to do the inspections before buying a pre-owned vehicle.
- Get clarification for ambiguous statements on the marketing campaign by dealers.
- Always try to purchase a pre-owned car from a reputed dealer. Local dealers and garages can get away with illegal sales easily, but reputed dealerships have a name to maintain.
Where can you find quality used luxury cars from well-established dealers in India?
BMW India introduced BMW Premium Selection in 2011 in Delhi, Mumbai, Ludhiana, and Bengaluru. The outlet focussed on the sale of pre-owned BMW cars, which indirectly boosted the sale of new cars. The reason behind this is simple-people would want to try out the product first for a longer duration before committing to a long-term relationship with the brand.
Mercedes-Benz India started a similar initiative to increase the reach of its brand name. Although Mercedes has been in India since the early 90s, you could only strengthen the impact in the recent decade. These two luxury car manufacturers set an example for other organized players to enter the market. Big Boy Toyz is one such dealership started in Ghitorni in Delhi. The assortment of vehicles and their upscale marketing gives premium dealerships stiff competition. The rigorous inspection routines and paperwork verification make it one of the most reliable pre-owned car dealerships in the region.
Similarly, Mahindra First Choice Highline started operations in the year 2013 in Gurugram, which had the backing of the Mahindra First Choice brand name. The First Choice Highline deals exclusively in the pre-owned luxury car segment. Audi India entered into this segment in mid-2015 by the name Audi Approved Plus in Gurugram itself. It is another dealership that deals exclusively in used Audi cars.
Top famous dealers in the pre-owned luxury car market in India :
Organized used car dealerships still make use of unorganized channels to look for used luxury cars on sale. While the major chunk of product comes through these channels, the dealerships ensure that the cars are thoroughly checked for legality and fitness before reaching the consumers. Various online portals also continuously add and verify the dealers to their network for easy accessibility in Tier 2 and 3 cities. Some of the popular dealers in the pre-owned luxury car market in India are:
- BMW Premium Selection
- Big Boy Toyz
- Mahindra First Choice Highline
- Audi Approved Plus
- Luxury Ride
What models and brands do used luxury car dealers most frequently sell and why?
The sale of any used luxury car depends on reducing ownership period, frequency of introduction of new models in the market, service network, and offers a warranty. Used Car dealers focus on those brands more, which provides assistance to conduct checks and inspections. Also, the sale is driven by market trends and the availability of financing options. Many financing companies tend to go with old, reliable brands and offer better interest rates to their customers.
In this segment, let’s take a look at the most sold luxury car brands :
BMW 3 series and 5 series remain unbeaten in the used luxury car segment. Quality, style, luxury, and efficiency make these compact sedans a favorite in the Indian market. They’re all the more powerful in the long run and don’t fail to deliver even after a 2,00,000 km run. The most important feature is the regular software update rolled out by the company for its older models to keep them up to date with the latest norms.
The Mercedes C and E class are the major influencers in the used luxury car segment from this German manufacturer. The distinctive front grille and the Arrows make it the most lovable brand for the customers who want to make a statement. The sportier C-class is particularly an eye candy from the outside and the epitome of luxury from the inside.
Landrover in India dominates the SUV segment in the used luxury car market. The Discovery is the most sought-after vehicle by Indian automobile enthusiasts. The reason is simple elegance combined with performance. The engine configuration most sold onboard the Discovery is a diesel-operated 3.0 litre supercharged V6, which churns out a hefty 335bhp. More importantly, the vehicle’s off-roading capabilities make it a class apart.
The Volvo XC90 gained popularity in late 2018 due to the three German giants in the Indian market. As the customers wanted to try something different, Volvo offered XC90 to cater to a joy ride. It is a feature-packed vehicle with an outstanding sound system. XC90 doesn’t fail to deliver on the luxury part as well. Driveability and maneuverability make it light on the wheel, but it is tough on the outside.
While the demand for pre-owned luxury cars has risen significantly in recent times, more and more options make it an exciting time to live in. Luxury car manufacturers are not shying from taking risks and are reaping the rewards for offering offbeat products at competitive pricing. Stay tuned with our blog for more exciting stuff around the corner.