As Diwali 2020 date nears, know where second hand car sales are headed, especially hatchbacks

Dussehra has just gone by and Diwali 2020 date is nearing. While many sales have happened and more are planned by  corporates, here is an interesting bit of information for car-lovers, especially those who are looking at buying a second hand car. This festive season Indians are preferring to buy hatchback cars as their budgets have declined according to OLX Autos India Study.

61% car buyers plan to buy a pre-owned car this festive season and 56% of car buyers plan to purchase a hatchback car. OLX conducted a study with 5800 car buyers and sellers during August-October 2020.

61% plan to buy a car in the next 3-6 months, 15% are interested in selling their existing cars.

51% were salaried employees, while 40% were either self-employed or had their own business. Economic uncertainty with the working population has led to a shift in the preference for pre-owned cars. 

56% would prefer to buy a hatchback car, 44% expressed an interest in buying a larger car. 17% would prefer to buy a sedan & 11% would prefer to buy an SUV.

Constrained budgets will guide consumer spends on cars. 63% had a budget of only up to Rs 3L for a car, while only 30% respondents are willing to spend over Rs 3L to buy a car for their needs. 67% would buy a used car to move around with their families. 22% would prefer to buy a pre-owned car for their daily office commute. 

15% plan to sell their existing cars, 53% plan to upgrade their cars or buy another car, 23% plan to do so to meet their financial needs. 12% are selling their spare car. 

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Amit Kumar, Head, OLX Autos India, said, “Customers are getting attracted towards pre-owned cars as they offer the best value realization at a time when their incomes have been impacted. Post the unlock, demand for pre-owned cars have shot up 133% while supply is up by 112% on OLX as we head into the festive season. India’s pre-owned car dealers have about 60% of unsold inventory which they will aim to liquidate during the festive season."