The Indian used car market was valued at $27 billion in 2020. The year-on-year growth is expected to be exponential due to the increased need for personal mobility as a consequence of the pandemic. People are forced to look for options other than buying a new car. The used car sector, therefore, saw a massive spurt in the sales figures. Official car manufacturers are setting up their own used car dealer networks. Another way of buying a used car is through auctions. There are multiple reasons that banks and insurance companies have to auction cars. In almost all of these cases, it is the potential buyers that stand to benefit from it. The banks just have to sell the assets of defaulters to recover their share. Here are some tips to sequester a great deal for yourself.
• There are numerous players in the market who have set up online auction houses/used car markets like CarDekho, Cars24, Droom, etc. Before going to an auction, make sure to check out the prices of the exact model of the car that is up for auction. You will definitely find every possible model out there.
• Make sure to compare the prices across various platforms and with the car broker near you. In this way, you will get an idea of the vicinity the car will be priced around. If it is higher than that, you can walk away without wasting your time.
• Needless to say, the price trends are entirely subjected to the physical condition of the car. Depending on the exterior paint scheme, dents/scratches on the body panel, tire wear, etc, one could make his/her bid accordingly.
• Also important is to note which model and manufacturer the car for auction belongs to. There are some car companies in India, whose products, as well as services, maintenance costs are substantially higher. The ownership experience could be a major factor in setting the prices of any particular car during an auction.
• Dealership and service network are other practical aspects that one needs to keep in mind before going for a car. The service network of the top two car companies in India, Maruti, and Hyundai could be found almost anywhere across the length and breadth of the country. This could be a huge factor worth considering so that you don’t have trouble getting the servicing and repair parts done.
• A lot of the time, one is inclined towards going for a luxury/relatively unique car during the auction. But that could prove to be costly in the long run, especially if the carmaker has stopped the production of that model to the company has left the country. The prime example of such a car company that has left India recently is Chevrolet.
• Depending on the number of people betting on a particular car, the prices of that vehicle could rise. There might not be a decent value for money in that because people are paying just to get their hands on the car and not necessarily for the value it brings.