Even though vehicle sales have declined in recent years, the pre-owned automobile industry has grown over the last year and has become more significant than the new car market. Consider the following: According to a recent analysis on India’s automotive market by IndianBlueBook. At the same time, new car sales were 3.6 million units in 2018-19, 4 million used cars in San Diego were bought and sold.
The increase in new automobile sales has decreased for several reasons, including a cyclical downturn in auto sales during election years and a general reduction in consumer spending. In 2018-19, new car sales increased by 2.70 percent, the slowest rate in four years. In April, vehicle sales fell sharply compared to the previous period of the last year, with domestic sales down 17.07 percent.
According to experts, a drop in new automobile sales could indicate that demand is transferring to the used car market. In fact, rather than buying new cars, several car dealers replace their old ones with pre-owned vehicles.
Preference is Increasing.
So, why is it that people prefer used cars in San Diego? According to the IndianBlueBook research, obtaining good value for money is one of the main reasons individuals prefer a used automobile to a new car.
Given our economic growth and rising discretionary income, this is unsurprising. In developed nations, the ratio of individuals buying a new automobile to those buying a used car is 1:3, indicating that out of every four people who buy a vehicle, one buys a new car, and the other three go for a used vehicle, adding that now the trend of more excellent pre-owned car sales in India will continue.
“The value of a vehicle depreciates dramatically in the first year, with some models losing up to 50% of their worth. “The desire of having a car is being fulfilled at a lower price point from the buyer’s standpoint,” he said.
However, unlike the new automobile market, the pre-owned vehicle market is generally driven by supply rather than demand. According to Bansal, the average car ownership term is now three to five years, down from eight to ten years a decade earlier. “In many circumstances, a three-year-old car is as excellent as a new one,” he stated, encouraging buyers to buy older cars.
Because demand is high, now can be a good time to sell an automobile.