The demand for pre-owned luxury vehicles is growing steadily among the high-heeled Indian car buyers. The desire to own a BMW or Audi is driving upwardly domestic middle class buyers to seek the used premium car market. At present, a used luxury vehicle is valued at almost half the price of its brand new model in the country. According to industry experts, the demand for these affordable pre-owned luxury cars is growing at around 20 to 30 per cent every year in the Indian used car market.
It must be noted that the average price of a brand new luxury model falls in a price band of Rs. 30 lakh to Rs. 50 lakh in the country. On the other hand, the same pre-owned vehicle can be purchased at a price around Rs. 17 to 25 lakh in the used luxury car market. Therefore, a used BMW, Audi or Mercedes-Benz model is available within the purchasing limits of an Indian upper middle class buyer.
At present, around 18,000 to 20,000 second hand premium cars are sold per year in the domestic used luxury car market. The pre-owned vehicle market is set to grow significantly in the country, over the next few years. The idea has been affirmed by Eberhard Kern, Managing Director (MD) and Chief Executive Officer (CEO) of Mercedes-Benz India. Kern has revealed that the company is aiming for a double digit growth in its used car sales this year. Kern quoted, “In 2013 we expect to clock strong double digit growth. On an average we sell close to 100 units a month.”
Expressing his views on the used car market, Devjyoti Patnaik, Managing Director (MD) at Audi Bhubaneswar, was quoted as saying, “Pre-owned cars in the luxury segment typically come with manufacturer-backed warranty and are usually refurbished by dealers. Moreover, availability of finance is yet another factor in pushing up sales in the segment.”
The Indian arm of BMW operates through 10 exclusive BMW Premium Selection retail outlets for its pre-owned vehicles in the country. Speaking on the company's used car stores, Philipp von Sahr, President, BMW Group India, said, “All BMW Premium Selection vehicles go through a comprehensive 360 degree check and are completely refurbished technically and visually. Apart from the exclusive environment, professional service and impeccable quality standards, BMW Premium Selection makes the purchase of pre-owned cars effortless with attractive finance options.”