Too risky to buy used? First-time car owners share why they said ‘No’: Report
A recent study indicates a decline in the Indian used car market, particularly among first-time buyers, with 77% preferring new vehicles due to trust issues and perceived high prices in the pre-owned sector.
First-time car owners share why they said ‘No’: Report
2025 Tata Altroz review: Tata’s Best Hatchback Yet?
Discover everything about the automotive world at Times of India.
India’s used car market may be losing traction, at least among first-time buyers, as per a new nationwide study by Park+ Research Labs. The report has revealed that a substantial 77% of first-time car buyers in India chose to purchase new vehicles over used ones in the past year, pointing to deep-seated trust issues within the pre-owned car ecosystem.Among those surveyed, 81% believe used car prices are unjustifiably high—often rivalling or exceeding the cost of brand-new models. This sentiment is especially strong in the under Rs10 lakh bracket, where nearly 90% of second-hand car transactions occur, according to a Deloitte report. For many buyers, new cars now offer better value thanks to easier financing options and more reliable after-sales support.For those who did consider a used car, the experience often didn’t end well. Sixty-five percent said they backed out due to peer warnings, negative online reviews, or firsthand disappointments. Legal complications were cited by 43% of these respondents, while 22% pointed to RC transfer delays, and 11% blamed poor digital reviews.Interestingly, traditional local car dealers seem to be winning the trust battle. Around 73% of first-time buyers said they felt more confident dealing with local sellers compared to large organised players. The reasons were simple but powerful: face-to-face negotiations, a sense of human connection, and transparent dealings.Documentation disputes, incomplete ownership transfers, and fraudulent listings continue to haunt the used car space. Buyers are calling for better regulation, more transparent processes, and a system that can guarantee smoother and safer transactions.
2025 Tata Altroz review: Tata’s Best Hatchback Yet?
Discover everything about the automotive world at Times of India.
India’s used car market may be losing traction, at least among first-time buyers, as per a new nationwide study by Park+ Research Labs. The report has revealed that a substantial 77% of first-time car buyers in India chose to purchase new vehicles over used ones in the past year, pointing to deep-seated trust issues within the pre-owned car ecosystem.Among those surveyed, 81% believe used car prices are unjustifiably high—often rivalling or exceeding the cost of brand-new models. This sentiment is especially strong in the under Rs10 lakh bracket, where nearly 90% of second-hand car transactions occur, according to a Deloitte report. For many buyers, new cars now offer better value thanks to easier financing options and more reliable after-sales support.For those who did consider a used car, the experience often didn’t end well. Sixty-five percent said they backed out due to peer warnings, negative online reviews, or firsthand disappointments. Legal complications were cited by 43% of these respondents, while 22% pointed to RC transfer delays, and 11% blamed poor digital reviews.Interestingly, traditional local car dealers seem to be winning the trust battle. Around 73% of first-time buyers said they felt more confident dealing with local sellers compared to large organised players. The reasons were simple but powerful: face-to-face negotiations, a sense of human connection, and transparent dealings.Documentation disputes, incomplete ownership transfers, and fraudulent listings continue to haunt the used car space. Buyers are calling for better regulation, more transparent processes, and a system that can guarantee smoother and safer transactions.
Published: June 26, 2025, 7:22 a.m.
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