The Indian car market is evolving into a huge one because both the new and used cars are growing significantly. In fact, the new car market growth seems to be lagging behind the used car market growth. This is happening as it is no longer just a small group who want to buy a car.
Many people now aspire to have a car of their own and are open to selecting the best, even if it is a used car.
The used car market typically follows the new car market because the popular new cars are the ones that become popular as used cars. A huge variety of brands and models are available in the used car industry, and buyers find it difficult to choose.
But, with the influx of used car dealers with their savvy online presence and the growing influence of lenders on the buyers when they begin offering used car loans at attractive terms, the used car market has acquired a stature of its own.
Just as the market for used cars is competitive, the secondhand car loan market is also competitive. Lenders like Tata Capital have begun to offer used car loans with various offers that entice used car buyers to avail of secondhand car loans. Lenders, including banks and NBFCs such as Tata Capital, offer used car loans, almost mirroring the terms for new cars. Perhaps, this could be one reason why the used car market is growing faster than the new car market.
If you are looking for a used car, where do you start?
The used car market is primarily dominated by the low price to the mid-price segment, just as the new car market is. More than 60% of the used car market comes from these price segments, which comprise many brands and models of all major carmakers, out of which Maruti Suzuki and Hyundai are the leading brands. The remaining 40% includes higher price brands and models.
Before you plan to buy a used car with a secondhand car loan, it is imperative to do your research. Look for the best option and your budget, then choose the one you want.
The popular brands and models in the different segments of the higher-price used car market are as per the details below:
Mid-price Hatchback Segment
The most popular segment is the mid-price hatchback segment because of the utility value and the comfortable cabin and storage space. Buyers prefer the more popular brands. The price segment is Rs 6-10 lakh. Buyers of these cars are the ones who have large families or run a business. Some of the brands and models are
- a) Maruti Suzuki Ertiga, Brezza, Baleno – available between 6-9 lakh. Among the more popular brands and models
- b) Hyundai i20, Asta, Active – these are popular models available in the Rs 6-8 lakh price range
- c) Renault Duster – price range of Rs 6-10 lakh
- d) Toyota Innova – among the most popular brand in the price range of 7-10 lakh
- e) Volkswagen Polo – A popular car
This segment is popular because buyers here want to self-drive a good car and enjoy the power and comfort these cars offer. Further, this is a popular segment as a chauffeur-driven car for top executives and businesspersons. Some of the popular cars in this segment include
- a) Skoda Octavia, Rapid, Laura – these are top-rated models available in the Rs 6-12 lakh price range
- b) Renault Fluence – this model is also popular
- c) Volkswagen Vento – another popular model
- d) Honda City and Accord – these cars are popular in the Rs 6-12 lakh price range
- e) Toyota Crysta – a popular follow-up to the Innova
High-priced sedans and hatchbacks
This is another popular segment with top names, including Mercedes, Audi, Volvo, and BMW. These are coveted by upwardly mobile youngsters and middle-aged top executives. Some brands include Audi Q3, Mercedes CLA, E Class, BMW 5 Series, and Volvo.
These cars are available in the price range of Rs 15-50 lakh, depending on the car’s age and condition.
This segment is viral, and all the leading super brands are available on the market. More popular brands include the Toyota Fortuner, Prado, Mercedes, Audi, Volvo, BMW, and Jaguar Land Rover.
These cars are top-of-the-line, and the buyers include top executives and high-net-worth individuals who use them as a second or third vehicle and a status symbol. These cars are available at prices ranging from Rs 25 lakh and going all the way up to Rs 50 lakh.
The top-end car segment is quite popular, not necessarily in quantity but in value. There is a wide choice of such cars available on the market. These cars get sold as pre-owned cars through company-owned secondhand car outlets.
The options are many. With a good secondhand car loan from an NBFC like Tata Capital, you can also buy the car you want and desire!