The second hand car business is set to thrive in India with many automakers entering the fray
Even as the new car sales have seen a sizable dip over the past many months, the used car market in India has been growing exponentially. A recent survey indicated that the ratio of persons opting for a new car to that of preferring a pre-owned car was 1:3. This means that out of four persons who buy a car, one would buy a new car while three would settle for a used vehicle.
The current COVID-19 situation in India has also led to a significant dip in new car sales with more buyers showing inclination towards the used car segment. Salary cuts and pink slips have been flying out in recent months and customers have become more value conscious. A survey showed that during the lockdown, enquiries for used cars doubled from 19 percent to 37 percent while that for new cars dipped from 81 percent to 63 percent.
There are certain advantages in buyers opting for a used car over that of a brand new vehicle. For starters, there are manufacturer backed certified pre-owned car sales outlets that give the buyer a certain sense of confidence. Each pre-owned car sold via these certified outlets is put through a lengthy process of identification and replacement of defective parts and a complete refurbishment prior to sales. It even undergoes inspection by a third party inspector who certifies the vehicle as fit for sale. There are also various financial schemes, increased warranty and other benefits offered by the used car sales outlets that work to the buyer’s benefit.
We go through a list of such manufacturer certified pre-owned car retail services in India.
Mahindra First Choice
Mahindra First Choice Wheels (MFCW), the country’s largest multibrand used car platform, not only deals in Mahindra models but also models from other automakers. There are over 1,700 Mahindra First Choice outlets spread over 810 cities in India which will be expanded to 1,800 by the end of this year. The recent decline in shared taxi operations has seen growing inquiries for smaller and used cars on its platform and MFCW has accounted for 1,500 bookings executed in the past two months.
Maruti Suzuki True Value
With a network of over 1,252 outlets across 942 cities, Maruti True Value puts their vehicles through a 376 check point evaluation, refurbishment and documentation process. These pre-checks include scrutiny of original documents, insurance and RC certificates, chassis number and registration number while owner details are also recorded along with service history of the vehicle.
Hyundai Motor India Ltd started its certified pre-owned car program under the brand name “H PROMISE”. The company has over 475 “H Promise” pre-owned outlets in India and buoyed by its success, plans to widen its exchange sales and certified sales programs even further. Each pre-owned vehicle comes with Hyundai warranty of 12 months /20,000 kms whichever is earlier along with 2 free services. The vehicles are thoroughly checked and defective parts are replaced with Hyundai Genuine parts while transfer of RTO papers in the name of the new buyer is also undertaken.
Tata Motors Assured
Tata Motors Assured is the pre-owned vehicle program from Tata Motors Limited as a one-stop solution to customers wanting to exchange their existing vehicles for new Tata cars. Each vehicle is put through a stringent check done by done by Tata Motors’ engineers. All pre-owned cars sold via these outlets should be less than 5 years old, non accidental and not having more than 2 owners. Buyers are offered easy finance options through tie ups with banks and financial companies while each pre-owned Tata car comes in with 12 months/20,000 km extended warranty and 3 free services.
Toyota U Trust
Toyota U Trust is a certified used car program which offers good quality pre-owned cars. Launched in 2007, this certified used car program has expanded to over 100 outlets across India. Toyota U Trust offers buyers certification and warranty packed by Toyota Motors. The customers receive a 2 year/30,000 km warranty and three free service offers at any of the company dealerships.
Volkswagen Das WeltAuto
Volkswagen India has strengthened their used car business with Das WeltAuto (DWA) offering the service to all those interested in buying or selling a pre-owned vehicle. As on date, there are 105 DWA facilities in India offering this service of multi brand pre-owned cars and is not only restricted to customers seeking to exchange their vehicles for new Volkswagen. DWA promises competitively priced used cars, along with up to 12 months warranty package. The cars are each put through complete processes of 160+ point checks to identify and replace defective parts and are certified by a third party inspector.
This pre owned car brand from Renault was launched in 2015. It has made its way to major markets across the country and not only deals with buying and selling of used vehicles from Renault India but also from other brands such as Maruti, Hyundai, Tata Motors, Honda and Toyota etc. The company ensures that all vehicles adhere to Renault quality standards. The pre-owned cars come in with Road Side Assistance and warranty upto 1 year or 20,000 kms.
BMW Premium Selection
BMW India offers pre-owned BMW vehicles through its Premium Selection outlets. Here, each vehicle endures a complete 360° check prior to the cars being made available to buyers. Each pre-owned car must comply 100 percent with BMW’s product standards and should be less than 5 years old and have not covered more than 60,000 kms as a part of the BMW global used car ownership program. Each vehicle comes with a full history of servicing, maintenance and repairs.
The luxury automaker offers pre-owned cars with attractive loan and easy financing schemes. Each pre-owned vehicle is thoroughly examined, documented and put through a series of check points prior to sale.
Audi Approved Plus
Audi India, noting increased demand for used vehicles in the country, has opened Approved Plus outlets. Each pre-owned car, sold via the Audi Approved Plus outlets are put through a 300+ check point wherein vehicles undergo mechanical checks along with body work, interior and electrical inspections and service history. Each customer assured of a 2 year warranty and 24×7 road side assistance.