The Indian automotive industry has been in doldrums for the past one year. Carmakers have reported negative growth for the last 11 months in a row. All this while, passenger vehicle sales have dipped by over 25 per cent, and the industry is at the risk of cutting down lakhs of direct and indirect jobs. This is the worst slowdown that the industry has faced in decades, and it could be attributed to various factors. For one, the stringent BS-VI emission norms come into effect from April 2020. Then there's the struggling economy, and the fact that new car loans aren't as easy to get. This has a direct impact on the customer's buying sentiment.
Used Car Market in Boom
Amidst all this, the used car market has witnessed a surge in demand. It has reported a growth of 11-12 per cent this year, and industry analysts predict it to continue for the next two-three quarters. This has also resulted in a spike in hiring of 'technical evaluators' and sales staff. Our sources also reveal that the real employment impact is far bigger, as a lot of other support functions too require manpower.
The organised used car industry employs roughly around 10,000 people. And the number will only multiply if we also consider the unorganized used car market. Companies have hired mechanical engineers and diploma holders for technical evaluation of used cars. What's more, freelancers are in higher demand, and the fact that organised retail accounts for only 18 per cent of the overall four-million-unit used car market, the opportunities are immense.
What does the customer gets?
Value for money is among the top reasons why customers buy a used car. Value of a car depreciates significantly in the first year itself, which can be as high as 50 per cent for certain models. It also fulfils the buyer’s aspiration of owning a car at a lower price point.
What's more, you also get a car that's certified by an organised pre-owned car seller. These cars are evaluated by expert technical inspectors and minor issues are fixed before buying the car. In some cases, the cars are thoroughly serviced, and you also get a limited six-month warranty with a few free services. Additionally, dealers also offer attractive finance schemes.
Where should you buy one?
Buying a used car is a tricky choice that one has to make. A prospective buyer has to weigh-in a lot of factors before deciding on his purchase. However, there are quite a few options in the market like Mahindra First Choice Wheels, Maruti Suzuki True Value, Toyota U Trust, Renault Selection and Truebil among others. Luxury used car buyers can choose from marquee players like Mercedes-Benz Certified, Audi Approved Plus, and Volkswagen Certified. Not only do they offer certified cars, but also take care of documentation and RC transfer. And the peace of mind experience is an added bonus.