NEW DELHI: Luxury vehicles have always represented status and exclusivity, and ongoing innovation in the sector has only made them more attractive. As the sector projects a strong growth rate fueled by increasing disposable incomes, changing customer aspirations, and improved financing options, it presents ample opportunities to explore and carve out a niche.With the growth of the industry and the changing consumer needs, the pre-owned luxury car market is also developing.
Consumers are increasingly discovering that a pre-owned luxury car represents financial and practical benefits, providing the same luxurious experience without the exorbitant cost of a brand-new car.As per the reports, in 2024, approximately 50,000 new luxury vehicles were sold in India. In comparison, the pre-owned luxury vehicle market witnessed a staggering 80,000 sales during the same time frame.
Not only is the pre-owned market growing more rapidly than the new product market, but it is also likely to overtake new luxury vehicle sales in sheer numbers by 2030. The shift is being driven by greater confidence in certified pre-owned cars.
With this rising demand comes immense opportunity. New-age players in the market are redefining the way people buy and own pre-owned luxury cars. Today, leading dealerships provide an experience comparable to new car showrooms, including meticulously inspected vehicles, verified histories, and guarantees that eliminate uncertainty. Money-back guarantees, such as 5-day or 15-day return policies, further give buyers satisfaction with their purchase.
Another crucial factor adding to this is depreciation, as luxury vehicles experience steep value drops in the first few years, giving a lucrative value to the buyers. This means that buying a pre-owned luxury car, ideally after this high-depreciation phase, allows consumers to enjoy a high-end vehicle at a much lower cost while avoiding the value drop.
One of the concerns for buyers even those willing to stretch their budget for a pre-owned luxury car, is the maintenance costs. The market is, however, experiencing disruption in this segment as well. Industry players dealing in pre-owned luxury cars now provide the same level of service as Original Equipment Manufacturer (OEM) workshops but at close to 50% of the price. These workshops employ Original Equipment Supplier (OES) components, which are reliable and long-lasting, making maintenance much cheaper. Resulting in the fear of high upkeep costs no longer being a deal-breaker for prospective buyers.
Another strong benefit contributing to the appeal of pre-owned luxury vehicles is the simplicity of exchange and upgrade. Pre-owned luxury dealerships now have smooth exchange schemes, enabling owners to exchange their vehicles for different premium cars.
This allows buyers not to be stuck with one car for too long and to upgrade within budget as preferences change. Established markets such as the U.S. and Japan have already caught up on the pre-owned luxury car trend. Through a strong ecosystem supporting certified pre-owned cars, with a guarantee of quality and price, and making luxury ownership affordable.
India is just starting from this curve, and the growth trajectory indicates that the pre-owned luxury car market will grow even stronger in the years to come.
The aspiration to own a luxury car is no longer the exclusive domain of the super-rich. With the option of a pre-owned luxury car, customers can enjoy the same high-end experience at a fraction of the price. And with structured service networks providing top-notch maintenance at half the cost of OEM workshops, long-term ownership is fast becoming hassle-free. The smart thing to do today is to purchase preowned luxury for the price of your preference and maintain it at half the price because real luxury is all about the experience, not the cost.
Written by Himanshu Arya, Founder & CEO, Luxury Cart
