India is one of the fastest-growing car market in the world, with sales of passenger vehicles increased by 7.24 percent for the year ended March 2016.
By 2020, India will be the third-largest passenger car market in the world. Currently, the pre-owned cars market is 3.3 million in size. The used car market is growing 15 percent per annum. There are about 30,000 used car dealers in this sector.
North India is the largest market for the used car, one in two used cars are sold in the metros. The average age of the pre-owned cars is 3 to 4 years and most of the cars are done about 45,000 to 50,000kms.
About 50 percent of the Pre-owned cars are also the first car for the buyers. The interest rate of the used car is comparatively higher than the new cars.
According to a report by Mahindra First Choice Wheels, diesel cars are the preferred choice for most of the pre-owned buyers. India's pre-owned car market is even bigger and it's growing faster.