Indian used car market growing at 20%, sales at 3.2 million units, 1.2 times that of new cars, study

Indian used car market growing steadily at 20 per cent; sales stand at 3.2 million units, 1.2 times that of new cars, says Cartrade.com. In recent times, the Indian auto market has seen a trend wherein people prefer to buy used cars as compared to the new ones. Purchase of a used car is no longer socially frowned upon in India, thanks to lifestyle changes, says a .
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Industry experts feel that this change in preference of people might be based on a number of reasons. Used cars have a lower cost, which is something that is always bound to attract the price sensitive Indian buyers. Also, there has been an exponential increase in the number of establishments that sell pre-owned cars. These organisations offer warranty and are quite trustworthy, as well.
Strangely, the Indian used car market is visibly unaffected by the economic downturns and slow industry growth, with sales actually surging ahead by huge numbers, as compared to the new car sector. Market estimates suggest, the pre-owned car sector is growing at 18-20 per cent; the organised segment is growing 40 per cent annually. Sources say strong growth in the new-car segment from 2007-08 to 2011-12 (14 per cent compounded annually) led to a huge inventory of used cars.
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Vinay Sanghi, CEO & Founder, Cartrade.com said: “The entire lifecycle of ownership of cars has changed. Earlier, one kept a car for five-eight years before a replacement; this has come down to three-four years. Used-car sales in India stand at 3.2 million units, 1.2 times that of new cars”.
Websites like Cartrade.com, Gaadi.com, Cardekho.com etc. are some of the leading online automotive markets for buyers and sellers of new and used vehicles. CarTrade.com helps customers who are looking to buy or sell new or used cars and want to remain up-to-date with the latest automobile news, expert reviews and car prices. All this information, along with a host of research tools, price information and a growing dealer network, is available just a click away with CarTrade.com. It also offers a wide variety of good quality used cars backed in many cases by a Condition Check Report. Also, the benefit of car warranty can be availed on selected cars at the CarTrade.com Franchisee Stores.

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