Today, used cars are more preferred by customers. Customers prefer these used cars over brand-new ones since they are not too old and are well-maintained. Due to the significant price difference between old and new vehicles, many prefer to purchase these used cars. Very few people in the market use a vehicle for daily transportation.
Thus, it is very advantageous for them to get a used car. On the other hand, because they are utilized for daily transportation, daily drivers also favor these used cars in phoenix. The risk of driving an outdated car is considerably lower. It was evident in previous years that the market for used cars had already begun to develop. In the previous year, the used car market increased by 7–8%.
The following factors are driving up the demand for used cars:
- Used automobiles are readily available on the market, and their average price ranges between 2-4 lakhs, although this varies across rural and urban areas. But a new car costs between INR 5 and INR 10 lakh.
- Customers prefer used automobiles when they wish to purchase a vehicle. The supply of automobiles is thought to be very slow despite the great demand for them, which is attributed to customers’ being drawn to secondhand cars. The exchange process also shows the delay. It is a significant factor as well.
The effect of COVID-19 on the car industry:
- COVID-19 had a major impact on the new automobile market. A car is used on average for 8 years. However, due to their unstable financial situation, the customers chose to keep using their cars for longer than 10 years.
- During these two years, the replacement percentage likewise decreased by about 10%. A used car has a higher loan interest rate than a new one. Despite this, people continue to purchase used cars due to the price differential.
The growing market for secondhand automobiles has significantly affected the auto industry. Customers are compelled to purchase second-hand cars since new cars are less productive and cost more. Now that it has evolved into a trend, everyone follows it. These second-hand services fully met clients’ expectations while keeping costs to a minimum. In the market, used cars sellers are freely accessible. However, if any firm can introduce a new automobile model at these prices, the entire auto industry will be altered once more.
