When 30-year-old Vishal Gupta de-cided to buy an SUV, he went in for a pre-owned one instead of a new one. “I always wished to have an SUV. But when I started scouting for the one, I found it had a waiting period of 13 months. I had no issues with ownig a pre-owned one. Luckily, I got the one at a great price,” says Gupta. Vishal is one of the many youngsters who don’t mind preferring a pre-owned car to a new one. Between 2016 and 2020, the sale of pre-owned cars witnessed a continuous increase before falling a bit in 2021 on account of Covid-19. In 2020, 4.2 million used cars were sold across India, compared to 4 million and 3.8 million in 2019 and 2018, respectively. This was 50 per cent higher than the new-car sales figure at 2.8 million. The forecast of future growth of sales of preowned cars is bright. According to Redseer management consultancy firm, by FY 26, the pre-owned car sales are expected to reach 8.3 million units, at a healthy CAGR of 11%.
There have been several factors that have fuelled the growth of pre-owned car market, including lowering of the vehicle replacement cycle from 6 years to 4 years, increasing penetration of used car financing, the semiconductor chip shortages for new cars, and an underpenetrated passenger vehicle market.
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