Shubh Bansal, Co-founder of Truebil: Tapping The Used Car Market Potential
Traditional classified models, with their inherent flaw of information asymmetry, are not designed to cater to the modern consumer. Therefore, we are seeing the emergence of new models trying to address the problem of second hand car ownership.
July 27th, 2016
The market for used cars in India is undergoing a surge of changes. As per the CRISIL report, almost two in every three cars sold in the country today are used cars. Volume wise, there are around 3 million used cars sold in India every year. This culminates into a used car – new car sale ratio of 1.3:1, which is quite favourable.
Less than a decade ago, the Indian used car market was characterised with unaccountable and fraudulent practices. But the stigma and scepticism generally associated with pre-owned cars is not that visible anymore. The reason behind this remarkable shift in attitude lies in an emerging mass of aspiring car buyers, increasing incomes of working people that has led to more customers preferring to change their vehicle often and higher frequency of new car models being launched by established manufacturers. When carmakers release tens of new models and variants each year, car owners are inclined to switch over to these models faster. As a result, the replacement cycle of cars has reduced from 5-6 years to 3-4 years. With the organised sector in used car market bringing in inspected cars with quality certifications and linking to e-commerce, buyers are more willing to pay a premium for buying a reliable used car completely hassle free.
This welcoming change in the attitude of consumers opens up huge prospects for the Indian used car market which is still far from being tapped to its potential. Used car market in developed countries is massive. In the US, used vehicle industry comprises almost half of the U.S. auto retail market. It is undisputedly the largest retail segment of the economy. Currently, China is the world’s largest new car market, with sales of 21.1 million units last year. But when used cars are included, the US auto market swells to more than 40 million units, against less than 30 million total passenger car sales in China. Steadily, the used car market is catching up in the second fastest economy as well. The volume of used cars in China is estimated to register a CAGR of 16.5% during 2014-2017. It is safe to say that the growth of used car market is a by product of a maturing economy. Hopefully, in India, the rising trend is expected to hike in near future and the used car sales volume is anticipated to grow up to 6.2 million by 2018-19.
Consumers, nowadays, are seeking value more than ever before. Traditional classified models, with their inherent flaw of information asymmetry, are not designed to cater to the modern consumer. Therefore, we are seeing the emergence of new models trying to address the problem of second hand car ownership.
Founded in March 2015, Truebil streamlines used car buying and selling experience ensuring absolute transparency to the buyers. Serving as the one stop solution for all used car related needs, we provide free car inspection, quick sell guarantee, speedy paper transfer, used car loan assistance, insurance renewal support, warranty service and emergency roadside assistance to the car purchases made from our website www.truebil.com.
Unlike pure classified models which are not accountable for the quality of products sold on their platform, we take complete responsibility for simplified, quality used car trading on our website. At Truebil, every non – accidental car is hand inspected and verified at more than 150 checkpoints by our in-house, specialized auto engineers before it is listed on the website. Our inspection report is very extensive in nature bearing more than 40 photos of the car and minute details like number of scratches and dents on the car. The report for each car can be viewed on the Truebil website at any given moment. Our catalogue of used cars consists of only non- accidental, hand inspected and verified cars. That is why we provide our customers with Quick Sell Guarantee and Buy Back facility. By Quick Sell Guarantee we assure our customers to sell their used car within 15 days. In the rarest case, when we are unable to meet the condition Truebil buys the car from the seller. Through Buy Back facility, customers who buy Truebil’s most valued car are given the test period of 7 days or 300 km of drive. If anything goes wrong with the car during that period, Truebil buys back the car. We, at Truebil, are sure that our bundle of offerings will address the issues that are currently prevalent in India’s used-car market.