India is one of the fastest growing passenger car market in the world right now. The number of cars produced and sold in the country is growing by leaps and bounds. This growth in the auto industry can be attributed to growing positive sentiment on used cars in cities, a gradual uptick in the economy and an increase in the average household income. With the rise in the average income, a car is now within the reach of a common family.
But what is more surprising is the rise of the online used cars market place. When it comes to pre-owned vehicle market, the USA, the cradle of auto industry tops the list, with the average of 3:1 which means 3 used cars are sold for every 1 new car purchased. In European countries, the ratio of a used car to a new car comes at 1:2. In comparison, India’s ratio of used car to new car ratio stands at 1:3. But, it is interesting to note here that in the past decade, used car market has grown by 2 times. But still, the market of online used cars in India is in its infancy stage as a large chunk of the overall market still lies in the unorganized sector. The used car market is expected to grow at a rate of 15% and is expected to hit the 7 million mark by the year 2021. With a shifting focus from metro cities, tier 1 cities to smaller cities and town across India, the online car marketplace will soon be on a par to the USA!
The growth is surprising given the attitude and perception of the general public on used cars. So, what exactly has fueled the growth of the used car market? Let us look at some factors responsible for the growth in the online used car marketplace.
- Changing perspective
Earlier buying a used car was looked down upon and was not seen in high regard. A car has long moved from being a symbol of luxury to a necessity instead. Given the condition of Indian roads, commuting on bikes poses a great risk as compared to the stable four-wheeled cars.
The Indian roads are notorious for bad drivers and rash driving. Therefore, owning a car seems more practical as it provides safety and comfort. But the fact that the need often precedes affordability has pushed the buyers to look for used cars as they are more affordable. For those who can’t afford a new car, buying a used car seems more practical and economical. The option to own a big car in good condition at almost half the original price has indeed helped the market of used cars to grow at an impressive pace.
- Short Ownership
The age of ownership of a car in India has certainly come down due to an increase in the car models in recent years. Today the market is flooded with numerous car models which puts a buyer in dilemma, unlike two decades ago, when there were a limited number of car models to pick from. The addition of the latest hi-tech features in recently launched cars has lured customers to switch their cars with better car models. This has led to decrease in ownership years resulting in the flooding the market with used cars.
- Attractive price
The consumer behavior is changing rapidly with time. The belief and trust of youth in the online auto marketplace has led sellers to look for buyers online. This can be ascertained from the fact that more than 1 million automobiles have been sold on Droom in just four years. Also, most buyers of pre-owned cars are young, so the price band at which they can afford a car suits them well. The attractive pricing of used cars has lured many youngsters to buy pre-owned cars rather than shelling loads of money on a brand-new car.
- Modern Tech Pricing Method
Gone are those day when the buyers would pull out a random number from his hat, leaving buyer confused. It was hard to trust on seller back then but now things have changed, all thanks to Orange Book Value or OBV.
OBV is Droom’s 21st-century pricing engine that uses advanced data metrics and other calculation criteria to calculate the fair price value of the car. Orange Book Value (OBV) can be considered as the MRP of a used car. The OBV is a tool for a used car valuation that protects the buyers from unfair price valuation. OBV does that by analyzing the age and health of the used car. Then after a detailed analysis, the used car is put under four categories namely EXCELLENT, VERY GOOD, GOOD, FAIR. OBV seeks to give the buyers the confidence to buy used cars and sellers to know the fair price of their used cars online.
The OBV has certainly helped buyers and seller to evaluate their vehicle in fair way. The OBV has won trust of thousands of auto dealers, buyers which will further help the online car marketplace to grow.
Droom is an automobile e-commerce platform offering a 21st-century automotive buying experience online with its four value pillars including trust, selection, low price, and convenience second to none. It offers 250k+ vehicles online in 1,100 cities — both used and new. Droom deals in buying and selling cars, 2-wheelers, and other vehicles too. It is an AI and data science-driven platform designed with the best ecosystem tools. Here, we have a team of auto-experts and auto enthusiasts who are dedicated to covering every sphere of the auto industry by simplifying the procedure of buying and selling with Unified Droom Experience. To know more, click here.
Maybe you could try asking a car vaatouiln agency to help you with this matter. Usually they have competitive that could be very helpful if you want to attract plenty of buyers. +16Was this answer helpful?