Prices Hike For Used Car Market

With new car prices increasing over the past few years, the value of used cars has increased in the last two years. The average ticket prices in the used car market have increased to 6-6.5 lakh from Rs 3-3.5 lakh. Vinay Sanghi, CEO of Car Trade Group, tells TOI that the new car ticket size has increased by around 30%, spilling over to the used car market too. He adds that people prefer buying the top-end variant in all types of cars.

Used car marketers believe that the demand-pull means a slightly older SUV is available for the price of a hatchback. Gajendra Jangid, CMO of CARS24 Services, states that used SUV prices can start from as low as Rs 3.5 lakh while hatchback prices can start from Rs 2 lakh only.

Compact SUVs have become top draws, and in the luxury space, specific models are top-rated. The famous model top model ranges from just under Rs 2 lakh to Rs 7.5 lakh. The new car product mix has been changing in favour of pricier SUVs, which have also started to come to the used market. The second-hand car finance comes at a higher cost of 11.4 to 15% compared to 8.2 to 10.5% for new ones.