Amid lockdown due to COVID-19 pandemic, industries are reeling with slowdown and job cuts. But the pandemic has come as a big opportunity for the second-hand car market. As the country is suffering from lockdown, experts believe that now individuals will avoid public transport to travel for professional and personal purposes. This emerging trend will gradually boost the sales of automobiles.
Now owning a personal vehicle has become a necessity for people who need to step out for various purposes. However, people are not willing to spend more due to the poor job market and economic slowdown. The second-hand car market is poised to benefit disproportionately from this. Pre-owned car sellers have started witnessing a surge in new inquiries and are preparing for good times ahead.
Shift is happening
With the Indian economy gradually opening up, people are hunting for a good used car deal to commute. As per Amit Kumar, the business head of OLX Cash My Car third and fourth phase of lockdown have witnessed an increase in demand and supply of used cars in orange and green zones. Founder and CEO of an online market place for used car Droom, Sandeep Aggarwal expects the sales to rise by at least 20 percent.
In the last quarter of 2019, the second-hand car market was valued at $90 billion; 1.5 times bigger than the new car market. Maruti Suzuki’s True Value brand also believes that battered customer sentiments and a sluggish economy will encourage buyers to go for second-hand cars.
People replacing luxury cars with more affordable cars
People are losing jobs and business-owners are making very little or no money. To reduce maintenance costs occurred from luxury sedans and SUVS, many car owners are replacing them with smaller cars that have lower running and maintenance costs. This has also created a lucrative market for high-end second-hand luxury cars.
Second-hand car dealers are getting several inquiries for models like Honda Accord and Toyota Fortuners. People are also hunting for sweet deals on luxury models of Mercedes and BMW.
Self drive car market
Self-drive car services can become a bump in the growth of the second-hand car market. Car rental companies like Zoomcar and DriveU are marketing themselves as a more convenient and affordable option for people looking to commute from car amid COVID-19 pandemic.
Leading car rental firm Zommcar’s co-founder and CEO Greg Moran is expecting a 4X to 5X increase in car rental demands. Car rental might attract more customers as it is a faster way to acquire a car. Aside, you also don’t have to shell out a hefty lump sum amount or take a loan to own a car. You can easily pay for the car as you use.
Increase in prices
Amid rising demand, second-hand car dealers are expecting a slump in supply. If the supply continues to decrease, there could be a slight jump in the prices of second-hand cars across the market verticals.
In all scenarios, post COVID times, the second-hand car market is definitely poised to witness a brisk growth!