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Old 27th August 2016, 02:15   #16
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Default Re: Interesting Report on the 'Used Car Market' by Mahindra First Choice

I was in search of a used car in NA for last few months . 2 things I like most here are kbb.com and carfax . We need something similar in India that can consolidate the RTO details , Insurance claims and service history on a single platform based on VIN number . This will help anyone who is looking for a good used car .
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Old 27th August 2016, 08:00   #17
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Default Re: Interesting Report on the 'Used Car Market' by Mahindra First Choice

Quote:
Originally Posted by GTO View Post
Pre-owned is definitely not for everyone. For the layman who doesn't know much about cars, new is preferred (MUCH safer). To people like us, pre-owned cars rock as we're able to get superb deals on excellent cars. I'm currently on my 5th pre-worshipped car..............
Well said! In fact there seem to be (I've met one in Lucknow) a service provider network to help prospective customers in vetting the target car(s) that they intend buying from a dealer. They have a large data-base (with just the regn. number of a car) which they claim has a detailed history of every car offered by the organized sector, from "birth, service history, hospital visits after mishaps, brushes with the law, etc" (his own words!). The fees for this service is quite nominal & all parties seem satisfied with minimal complaints.

Last edited by shashanka : 27th August 2016 at 08:05.
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Old 28th August 2016, 00:36   #18
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Default Re: Interesting Report on the 'Used Car Market' by Mahindra First Choice

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Originally Posted by avisidhu View Post
... and even the organized ones like FirstChoice et all are seen using the same unscrupulous means as others many a times.
Thank you for being so candid. I have had a difficult experience with First Choice myself. They have a branch just next to my office in Noida, so it is difficult not to hop in some time or the other. However, whenever I have asked them to keep me updated if a good SUV comes the way, they have somehow managed to tell me that any good SUVs are reserved for their choice customers.

This I have experienced across dealers in the NCR. They already have strong clientele (people with high disposable cash I would assume) whom they would like to deliver the good cars from time to time. For the walk in customers like us they would like to peddle the not so good stuff.

Then there is their pricing. I have seen in the UK that used cars are priced by dealers at high prices, but in the end it is generally a win win deal. In India, whether it is to do with availability, or with more disposable cash in the market, the bigger the dealer is, the higher the margins they crave for and actually end up getting. The biggest dealer in Noida I am aware keeps crazy margins, and still manages to sell quite a few each month.

Overall it is very difficult to find a decent bargain with a dealer. It takes a lot of effort and knowing your cars/market to be able to buy a used car from them which you will not regret once the initial euphoria dies down.

I remember my first used car was a 1990 model pristine condition Fiat (Premier Padmini) with original tyres and service record bought from a Wing Commander in Delhi in 1999 for my dad. It took me 6 months to zero down on the car in a hunt which took me across Delhi NCR. In those days we either had the dealers or yellow pages adverts to hunt down prospective sellers. The car served us very well without a single hiccup before a crazy guy like me bought it from me in 2002.

I also remember the years around 1999 when a used Maruti 800 (4 gears, non A/C) 1-2 years old would be sold by dealers for 1.60-1.70 lacs. I could never understand how they could sell so many such cars when a new one costed 1.80 lacs ex-showroom and less than 2 lacs on road- those were days of fixed very reasonable RTO charges.

I have been on the verge of booking a new Crysta 2.8 for the past some days-just that I am still undecided. For whatever it was, I asked a couple of large dealers in Noida I have known for sometime to send me offers for the older version of Innova- and I even got an offer of an excellent 2014 V model @ 14.75!

Hats off to GTO- I have read his several posts on pre-worshipped cars including the last one he bought (BMW). It takes a great amount of effort and patience to be able to find one which you will not regret a few months down the line. For us mundane folks who really do not know our cars, we are put off by the effort required, the high probability of getting cheated, and the fact that the not so old cars which we like, are priced insanely close to a new car itself- all of which factors propel us towards a new car.

Otherwise I too would any day settle for a pre-worshipped car- I am sure for 25 big ones which the Innova Crysta top model commands, I should be able to find something which is a couple of notches above in class.
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Old 18th September 2016, 13:28   #19
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Default Re: Interesting Report on the 'Used Car Market' by Mahindra First Choice

Some infographics shared by ET Auto:

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Quote:
Four factors are fuelling the growth in used cars. Ownership cycles are shortening from 6-7 years five years back, it today hovers around four years and is likely to dip further to 3.5 years by 2021. Two, car quality in India is improving, boosting reliability even when driven over longer periods. Three, the emergence of organised players is bringing in credibility and consumer confidence. And, finally, there is a growing societal acceptance of people buying used cars.

Contribution of the organised sector in the used car business stood at 8% in 2011. Today it hovers around 12% (4,00,000 units) and by 2021 it is expected to touch 18% of the total or 1.2 million units. Today, only 15% of pre-owned cars are being financed, unlike new cars, around 70% of which are purchased via loans.
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Old 26th November 2016, 13:07   #20
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Default 2016 Report on the pre-owned car market in India (Mahindra First Choice)

Interesting Report on the 'Used Car Market' by Mahindra First Choice-3.png

Some Key Takeaways:

• 33 lakh used cars are sold every year in India. And it's growing at 15% p.a!! For more than half of these buyers, it's the first car in the house.

• Average ticket size is between 3 - 4 lakhs. Average odometer reading is 45,000 - 50,000 km.

• India's used car market is bigger than its new car market, just like the USA. In China however, that's not the case (used cars there account for half the sales of new).

• Split of sales is 45 : 55 for metros vs non-metros. What's more, non-metros are growing at a faster pace than the big cities.

• North India - the biggest new car market - is also logically the biggest used car market, accounting for 36% of all sales (next is the West region @ 27%).

• A used car sits on the dealer lot for <30 days which is rather quick (USA = 60+ days).

• Average length of car ownership in India is 48 months. That's sad - we ought to hold onto our cars longer (related thread (ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?)).

• Merely 12% of used car sales in India are through organised dealers. Even direct buyer-seller deals are much higher (OLX anyone?).

• An organised dealer (like Maruti True Value or Mahindra First Choice) will sell an average of 16 cars / month. If we include all dealers (organised & disorganised), it's 6 per used car dealer per month. Of course, the numbers will greatly vary based on location.

• An organised dealer in the metro sells an average of 19 cars / month. That in the non-metro areas (with significantly lower operational costs) is 14 cars / month.

• Less than 15% of used car buyers take financing. Compare to 65% for new cars. Used car loans are 4.5 - 6.5% more expensive (loan against FD please).

• Lots of potential for growth in new & used cars. India's car penetration level is a dismal 22 / 1,000 citizens (USA = 809 & China = 113). We rank 160 on the global motorisation chart.

• Used car buyers research online, but transact offline (just like it is for new cars). This isn't going to change for a l-o-n-g time.

• 20% of buyers get a used car as the 2nd car in the house. 7% do to learn how to drive . A cheap Maruti Alto is the best car for this purpose.

• The B2B market is 6 lakh vehicles / year. 80% of B2B sales are of repossessed rides (loan defaulters). Commercial vehicles account for a whopping 45% of the repo market. 2 & 4-wheelers are 20% each.

Source & Link to Full PDF Report: indianbluebook.com

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Last edited by GTO : 26th November 2016 at 17:13.
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Old 26th November 2016, 14:49   #21
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Default Re: 2016 Report on the pre-owned car market in India (Mahindra First Choice)

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene!
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Old 26th November 2016, 15:47   #22
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Default Re: 2016 Report on the pre-owned car market in India (Mahindra First Choice)

Nice and informative thread.

Quote:
Originally Posted by GTO View Post
• Average ticket size is between 3 - 4 lakhs. Average odometer reading is 45,000 - 50,000 km.
• Average length of car ownership in India is 48 months.
From these above two points what i analyze is -

1) Majority car owners do look for a very secured & hassle free ownership. As 4 years is the time when the extended warranty or manufacturers warranty expires. From then on-wards the majority of the car maintenance cost will be incurred from the owners pocket.

2) In majority of the states the road tax is for 5 years. So if they sell their car on the fourth year they save paying a hefty amount, which they can invest for their new car!

The good things here i find are-

The first owners always get their car serviced at the authorized service centers. But a second owner who buy a second hand car for the first time may not have all the proper information's and he may end up to the local FNG's. That will be cheaper for him. Plus this way small FNG's (friendly neighborhood garage) which now a days get over shadowed by the authorized service centers can carry on with their business. This will help the local mechanics and shops who sell auto spare parts too.

Over all i found this information to be very positive for the auto industry. Selling a 4 years old car in an average means the new car sales are on demand too, plus the used car market is also running in a healthy way benefiting every one. Plus now a days most of the cars are very reliable, the 2nd owner who buys a car with 45-50k on the odometer can use that car easily for another 1 lack kms with out much hassle. Its a win win situation for every one.

Last edited by Samba : 26th November 2016 at 16:04.
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Old 26th November 2016, 16:19   #23
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Default Re: 2016 Report on the pre-owned car market in India (Mahindra First Choice)

What I find surprising is that the average holding period of a car is just 4 years. I wonder if there is an error in this figure.

Pretty much everybody I know has held on to his or her car for 6 or more years. Indians generally have a soft corner for their cars - even if they are not automobile enthusiasts. Also, one would expect a 'poor' country like India to hold on to expensive assets for a longer time than richer countries.
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Old 24th May 2017, 10:19   #24
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Default Re: Interesting Report on the 'Used Car Market' by Mahindra First Choice

Just got a press release stating that Mahindra First Choice sold 2.2 lakh used cars in the last FY. That's higher than the number of new cars that Honda, Toyota & Tata sell . And with arguably higher profit margins & lesser investment.

Of course, that's lower than Maruti True Value which does 2 - 3 times the number of Mahindra First Choice.
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