More people buy, sell more used cars in 2022: CARS24 Mileage Report

New Delhi: Indians showed greater interest in buying and selling pre-owned cars in 2022, especially in the last quarter of the year.

CARS24, India’s leading e-commerce player for pre-owned vehicles, said in its Mileage Report 2022 that there had been 75% increase in pre-owned car sales in the October-December quarter (Q4) compared to the January-March quarter (Q1). It also noted a 30%increase in the average car buying budget during the year, and 81% YoY surge in the number of people buying more than one car.

The report highlights the trends and the changing criteria for purchasing cars that will define the country’s car buying behaviour in 2023 as well.

Mileage, premium features

There has been a shift towards the premiumization of cars. Still mileage continues to be the most important factor for an individual when purchasing a vehicle. In fact, every 2 minutes last year, users inquired about the mileage and average of various cars on various fuels. The most asked question is:“Yeh car average kitna deti hai?”

However, premium features like airbags, driver assist systems, autoplay music systems, giant screens, camera controls, sunroofs, etc. became immensely popular with people willing to spend more for them. These features will also be considered important when buying a car in 2023 and will drive sales.

There was a surge in people buying cars in different colours, such as red, black, and blue, beyond the traditional white and grey.

Maruti leads

In 2022, Maruti continued to lead the race for the most popular car brand in India, with 1 in 3 buyers purchasing a Maruti car. The maximum number of Maruti cars were bought in New Delhi, Mumbai, Bengaluru, and Hyderabad, followed by Kolkata, Lucknow, Pune, and Ahmedabad. Hatchbacks such as Swift, Baleno, Alto, WagonR, and Celerio were the most sold Maruti cars in 2022, while the sale of mini SUVs such as the Vitara Brezza picked up.

Maruti was followed by Hyundai, Honda, Renault, and Ford; however, the sale of younger brands such as Kia picked up in the last quarter of the year.

Preference for financing options

According to the data shared by CARS24, more Indians preferred getting their cars financed in 2022. The majority of vehicles were financed for users in cities such as Hyderabad, Lucknow, and Kolkata.The highest loan was taken for INR 25 lakh by a user in Delhi.

While financing, Indians preferred the tenure of 6 years as it gives more flexibility to pay and decreases the payment burden. The average EMI amount in 2022 was INR 11500, and the majority of loans were taken by salaried professionals.

Thanks to the financing options, this year also recorded more millennials buying a car, with a majority of buyers under 35 years.

Pune, Ahmedabad to the fore In Tier II cities

The sale of pre-owned cars picked up pace in tier II markets, with Pune and Ahmedabad recording the most car deliveries. Baleno was the most popular car in both the cities.

Cities such as Jaipur, Kochi, Lucknow, Patna, Ludhiana, Chandigarh, and Coimbatore have also been catching up in the race to see which city will buy the most cars this year, with cars already being added to the cart in the first week of 2023 itself.

Among the metro cities, Bengaluru purchased the most number of cars in 2022, followed by Mumbai, New Delhi, Hyderabad, and Chennai. Sifting through the heavy traffic with its smaller size and great speed, Maruti’s Swift was the most popular car in Bengaluru, Delhi, and Chennai, while Mumbai shopped for WagonR, and Hyderabad fell in love with the Hyundai Grandi10.

Buying, selling more cars

The CARS24 Mileage Report suggests 81% YoY surge in the number of people buying more than one car in a year.

People not only bought more cars this year, but also sold more than one car, with New Delhi having the most sellers. Indians sold cars worth thousands of crores in 2022.

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