For the last few years, the demand for pre-owned luxury cars has seen a consistent rise in India. The current pandemic has also changed people’s perception of pre-owned luxury cars. Now, they rather buy a second-hand car than take the risk of travelling via public transport. The cut in salaries is also a reason why the pre-owned automobile sector will do well.
Jatin Ahuja, Founder & Managing Director, Big Boy Toyz, tells us how business has changed in the lockdown.
What kind of business do you foresee for pre-owned luxury cars in the near future?
In the near future, the demand for cars like BMW 3 series, 5 series, Mercedes E class & C class will do better.
Has the pandemic been responsible for more people opting for pre-owned luxury cars?
Due to the COVID-19 pandemic, the preference of consumers has majorly shifted. They are opting for personal mobility, as it is much safer and gives a sense of belonging. People now prefer pre-owned luxury cars over new cars as they are mindful about spending, and are choosing a product that provides them value for money equivalent to a new car in a much lesser price, which meets, both, their budget and their high demand.
The depreciation value is a lot more when you buy a new car as compared to a pre-owned car. Also, our buyback assurance to the customers acts as an incentive.
Which are the top car brands that are in demand currently?
Consumer preference has changed and the demand for utility vehicles has increased. We are selling more pre-owned cars from Mercedes, Bentley and Range Rover, as they offer a better price range.
What kind of clients has been actively seeking pre-owned cars?
We have a mixed profile of customers, which includes celebrities, sportsmen, bureaucrats, businessmen and others. We have HNI and upper-middle-class clients who are mostly aged between 28 and 50 years.
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How much are customers willing to spend on pre-owned luxury cars?
The price bracket falls between ₹65 lakh and ₹1.25 crore. Most of our customers buy within this price range. However, we have recently ventured into the segment of cars ranging between ₹25 lakh to ₹50 lakh, as we are tapping into a new consumer base (millennials who preferred public transport over personal mobility earlier, but want to own a private vehicle now).
Which five cities generated the highest sales for you in 2019?
The highest sales in 2019 were recorded in Hyderabad, Mumbai, Bengaluru, Delhi and Ahmedabad.
Do you also have consumers buying pre-owned luxury cars in tier-II & tier-III cities?
Yes, we have customers in cities like Bhopal Kanpur, Dehradun, Salem, Vishakhapatnam, Coimbatore and Indore.
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What kind of new service/maintenance features have you added to your bouquet of service, post the lockdown?
Due to COVID-19, a lot of alterations have been added as a part of our daily routine. The sanitisation of the cars before delivery is one of them. Also, proper measures are taken by us for our customers to keep their cars technically sound.