Used car business getting traction in India: Study
With car makers focusing on used– car business in India, the percentage of new vehicle buyers considering buying pre-owned vehicle during their shopping process increased by 10 per cent in past three years, according to a study by market research firm JD Power Asia.
As per the JD Power Asia Pacific 2013 India Sales Satisfaction Index (SSI) Study, around 13 per cent of new-vehicle buyers considered buying pre-owned vehicle before making a purchase decision.
Additionally, 37 per cent of new-vehicle buyers who considered a used car, relied on the Internet during their shopping process.
"Auto-makers have been increasingly focusing on the used–car business in India, specifically with certified used cars which come with a manufacturer warranty," Singapore-based JD Power Asia Pacific Executive Director Mohit Arora said.
Additionally, automakers have ushered in transparency via their websites that provide real-time information on used vehicle inventory and price information, he added.
"These activities assure customers of a quality product by providing detailed insights about the vehicles, thereby propelling the consideration of a used-vehicle purchase," Arora said.
As per the report, buyers who consider a used vehicle rely on the Internet to search for information regarding vehicle financing, including trade-in options, and service-related aspects.
"In comparison, shoppers who do not consider a used vehicle use the Internet primarily to look for vehicle features and specifications," it added.