Technology-led used-car buying and selling platform Cars24 has announced registering a 42 percent year-on-year (YoY) growth in the sales of used cars in CY23. The company also registered a five-fold growth in the inquiries for used EVs last year, thereby indicating the market’s interest towards cost-effective and sustainable mobility options. Cars24 recorded around 200 inquiries for used electric cars every day in CY23. CNG-equipped used cars also recorded a two-and-a-half times surge in inquiries compared to the previous year.
Cars24 saw millennials and Gen Z coming to the fore, and upgrading their cars last year, and fuelling the used car inventory with fresher options to close the demand-supply mismatch in the segment. According to its data, the ratio of new-to-used car sales in CY23 was pegged at 1:1.5, thereby indicating a 50 percent more sales in the used car segment. The company said the infusion of younger, and premium used cars played a key role in fulfilling the market demand.
In line with the trend in the new car market in India, the company also highlights an interesting shift towards more premium used cars, with a growing customer preference towards models valued above Rs 8 lakh between CY18 and CY23. According to Gajendra Jangid, Co-Founder, Cars24, “This trend was more pronounced in metros like Bengaluru and Hyderabad, where this category registered substantial growth last year. This can be intricately linked to the rising income levels, and a no-compromise attitude on features, quality, and safety.”
SUVs and automatics on the rise
The company says the SUV-centric trend has extended beyond new cars and is making its presence felt in the used car market with a 4-6% growth since FY21. As per Cars24, the high-in-demand used SUVs dominating Indian roads this year comprised the Brezza, Sonet, Ecosport, XUV300, and Taigun. While the Hyundai Creta remained the most preferred SUV in Delhi-NCR, the Maruti Suzuki Brezza was the people’s favourite in Hyderabad, Ahmedabad, and Chandigarh. The Ertiga MPV garnered the top spot in Mumbai and Bengaluru, while the Tata Nexon emerged a customer favourite in cities like Kochi.
Cars24 also registered a significant 77 percent increase in the sales of used automatic-transmission cars in CY23, with the Honda City, Maruti Suzuki Celerio and Baleno, Renault Kwid, Tata Nexon, and Hyundai Creta being the top-selling automatic cars in the used car market last year. In terms of consumer demographics, people above the age of 30 years were the ones swaying towards automatic cars.
The company also witnessed an increase in the used car buyer’s budget by up to 30 percent, in want of top-notch features such as leather interiors, alloy wheels and ambient lighting. Used car buyers also gave importance to safety-critical features such as ABS, and ESC, while advanced features like 360-degree camera, as well as sunroof, started gaining prominence.
Kia emerged as a strong brand in the used car market, registering a notable 64 percent year-on-year growth in demand being generated from its Sonet and Seltos models.
Surge in used car financing in CY23
The company witnessed financing as a gateway for consumer’s aspiration of owning a car in India, and it saw cities such as Ahmedabad, Hyderabad, Coimbatore, and Rajkot registering a significant shift, with the convenience of car financing resonating strongly among a burgeoning number of enthusiasts.
The financial journey took an interesting turn as Delhi-NCR emerged as the hotspot for the maximum loans on used cars, reflecting a city-wide embrace of the financing trend. Surat took the lead in number of loan applications, indicating a high demand for financial support in the car-buying process. In Agra, out of 100 car buyers, more than 80 took financial support. The average EMI on pre-loved cars in 2023 was Rs 11,387
The financial spectrum in India varied, with the highest loan hitting Rs 21 lakh, secured by a customer in Noida, while the smallest loan amounted to Rs 92,000, granted to a user in Karnal, Haryana.
Tier III cities like Ludhiana, Nashik, and Rohtak experienced a notable surge in loan disbursements, underscoring the widespread adoption of financing options in 2023. 63 out of 100 buyers opted for a used car loan and Cars24 processed around 411 loan applications daily in CY23. Practicality took precedence as most Indians opted for a 6-year loan tenure, striking a balance between the excitement of car ownership and manageable monthly payments. Demographically, 73 out of 100 people in the 20–30-year age bracket sought financial assistance, while those in the over-60 age group preferred paying the full amount upon delivery.
The company witnessed more than Rs 500 crores worth of used cars hit the market every month in CY23, and attributes it to tech-savvy Indians who were turning their vehicles into cash. Cars24 recorded a 20 percent growth in people selling their cars in 2023 in comparison to 2022. The highest number of cars were sold from New Delhi, as well as non-metro cities like Lucknow, Jaipur, Surat, Kochi, and Patna.
The most sold car brand was Maruti with the Swift being the most sold model. Maruti was followed by Honda and Hyundai. The cheapest car sold was by a customer in Amreli where they sold their Maruti Zen for Rs 6,000 only while a Cars24 customer in Mumbai made Rs 1,38,00,000 by selling their Mercedes Benz S Class. The company says the maximum deals were closed within minutes of car inspection, and Saturday was the most popular day of the week for customers selling their car and July the most popular month.
