Car market. (Signal photo)
Cheap prices, early delivery and ‘real deal’… Second hand car market had once created a storm in India’s auto sector, but the latest survey says that now that trust is breaking. According to the new report of Park+ Research Labs, 8 out of every 10 new car buyers are now shying away from second hand cars.
What has changed?
More than 9000 people from across India, who for the first time in the conversation with car buyers, revealed some shocking things:
- 77 percent bought a new car instead of second hand.
- 81 percent believe that the prices of second hand cars have been inflated unnecessarily.
- 65 percent stepped back after thinking about the second hand car, because of this, the bad experiences and online negative reviews of friends were considered.
- 73 percent considered local dealers to be more reliable than big digital car companies.
Not on big companies, trust in street dealer
Yes! You will be surprised, but statistics say that trust in digital platforms has weakened. According to Park+, 53 percent felt more human connection with the local dealer. At the same time, 31 percent said that the local dealer can negotiate. While big companies were accused of ‘more promise, delivery less.
‘Old car, new headache’, these are the biggest fear
The answers that came out in the survey testify to the flaws of this sector:
- 43 percent was worried about legal pests.
- RC transfer was delayed by 22 percent.
- 11 percent was scared by the online review.
Old car looks expensive even below ₹ 10 lakh
According to DELOITTE, 90% second hand car deals are within ₹ 10 lakh, yet 81% of people feel that the old car prices have increased or even more like new cars. Also, the finance option and better after-cell service on new cars has turned people towards buying a new vehicle.
What do you want now?
Customers have direct demand:
- High transparency
- The process of RC transfer should be made easier and faster.
- Any regulation should be brought about the pricing of the second hand car.
Park+ Research Labs says that this survey is a sign of the need for big thinking in the auto sector. If the second hand market is to be brought back on track, then not just Flashy Ads, a trusted system without hassle will have to be created.