Over the next six months, the company expects to see trade-ins increase from a historical 25 percent of sales to at least 40 percent of total business.
According to research by MFCW, consumers are likely to opt for personal vehicles, over public transport, shift from two-wheelers to four-wheelers and revise their budget downwards given the economic malaise spreading over the country, Panday said. Some top brands that consumers have on their list included Maruti Suzuki, Honda, and Hyundai.
MFCW has revenue of about Rs 373 crore a year and its other business lines also include an auto portal that serve as as an advisory as well as a fleet business for b2b clients that is driven by repossessed cars that are acquired by corporate fleets and is growing fast. "The repossessed vehicles which come from NBFCs, banks and entities that have seen purchase defaults is a part of the business that has been growing 100 percent year on year in the recent past," Pandey said. "We expect that to continue too happen."
Arshdeep Singh, director of marketing at Spinny, a used car platform that is backed by SAIF, and Accel Partners and launched in 2105. "Our model is based on owning the entire chain of action from research to purchase and a customer can look up cars on our website which aggregates inventory across five metro locations," Singh says. "Select a car and a Spinny executive will bring the car to you, who gets on a video call before he leaves and then test the product and proceed with the purchase fate which the car is delivered on a truck." Spinny has sold around 6000 cars to date.
Singh says the top models are the Hyundai Eon, Hyundai i20, Volkswagen Polo, Honda Amaze and the Maruti Suzuki Swift. "Its the price point between 4 lakhs and Rs 6 lakhs that is getting demand for." Singh says that Spinny recently sod 60 cars in the last two weeks in Bengaluru and Gurgaon to younger buyers mostly to consumers under the age of 40.
What do clients look out for most in the used car market? "People value reliability more than anything, in this business," Pandey says.