Five reasons why pre-owned cars may make brand new sense for you in 2022

Once relegated to a waiting room, pre-owned vehicles have been finding buyers by the troves since the Covid-19 pandemic reared its head the world over. While the virus has had a detrimental impact on various industries and sectors, the automotive industry has had to negotiate a fair set of challenges, some of which continue to exist. But while demand for personal mobility options has risen considerably in most countries due to a need to maintain social distance, supply of new vehicles may have not been able to keep pace in many instances. As such and to fill the gap, pre-owned vehicles have become a pragmatic option for many.

Did you know that in the UK, select pre-owned models are fetching higher price than the list price of the same model in showrooms? Did you know that just to meet delivery timelines, some manufacturers have begun shipping vehicles with lesser features? And did you know that here in India, sales of pre-owned vehicles nearly doubled in FY 2020 compared to the previous period? Yes, second-hand vehicles are hot property in the market at present and may continue to be well into 2022.

Here are five reasons why buying a pre-owned vehicle in the new year may continue to make perfect sense:

Rising prices of new cars

Companies like Maruti, Mercedes-Benz and Audi have confirmed price hikes on either all or select models offered by each come January. The blame has been put squarely on rising input costs as well as on increasing operational costs. (Read more here)

Expect many other OEMs to also announced similar decisions of price hikes in the next few days. While it may lead to a boost in December sales, any plans of a new four-wheeled gift in the new year may come at an additional cost.

Chip shortage

The global shortage of semiconductor chip continues to pose a massive threat to the automotive industry. It is an unprecedented problem that has no end or respite in sight. Manufacturers, already tip-toeing their way through the problem are more than likely to remain cautious with production cycles. (Read more here)

Long waiting period

Some of the popular models in India have a waiting period which extends to almost 10 months. This is not just among small vehicles but some acclaimed mid-size SUVs as well. While newer products may take time to enter the pre-owned space, reports suggest customers are increasingly looking at buying well-established products from a reliable second-hand space rather than waiting months together for its brand new version.

Pandemic

As much as one doesn't need yet another reminder, there is yet another variant of Covid-19 threatening the world. India recently joined a list of numerous countries where the Omicron variant of Covid-19 has been detected. While health officials across the world are advising against panic, there is no denying the chances there could be a return of uncertainties.

People at large tend to hold on to their personal finances in times of challenge and if this variant necessitates a fresh lockdown, it could be yet another blow to the process of economic recovery the world over. And in such a situation, if it arises of course, a more affordable vehicle may make far more sense than a new one.

Options, deals and more

The pre-owned vehicle segment has long been maligned as being rather dubious where chances of a swindle is high. And it may have been with its fair share of reasons because the sector was previously unregulated with transactions taking place at a very local level. Those times are mostly in the past with a number of private players making strong moves to offer not just options in models and lucrative deals but the much-needed assurance of a transparent transaction for a product that is backed by warranty.

Many automotive brands too have either entered the pre-owned space or strengthened the presence.