So you recently saw your neighbour buy a BMW. Other than being jealous, you are surprised as to how could he find the money to do it? After all, he did not have that kind of money to purchase a luxury car. You dig deeper and found that he had purchased a used car.
You are surprised at this. Till very recently, your idea of used car was about small cars only. But it is indeed true. Many people in India are now selling and buying used luxury cars.
So who and why are luxury cars being sold and bought in secondary markets?
New luxury cars are generally purchased by those who have a lot of money. Now as years pass and their wealth increases, they want to upgrade to super-luxury vehicles. That is natural flow of things. So these rich people sell their luxury cars. This is how the markets gets it supply of used luxury cars.
Now let’s focus on the demand. Just like your neighbour in example above, there are people who have enough money to purchase a mid-segment car on their own. But they dream of owning a luxury car. Unfortunately, they do not have the money to do it.
But there is a way out. And that is to purchase a used luxury car that costs much less than new ones. Infact, you can easily find Mercedes and BMWs selling for 40% less than what they originally cost. So where you could have purchased a new sedan for Rs. 15 lac, you now have the option to purchase a few years old BMW for the same prices. It’s an attractive option no doubt. And this is where the demand comes from.
Interestingly, demand for second hand luxury cars is coming from large as well as small cities. And this trend will continue in future too. So if you too wanted to purchase that BMW that your neighbour drives, do some research and see if its available in used car market or not. You might just find what you were looking for.
