Pre-Owned Luxury Cars Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

The global pre-owned luxury cars market size is expected to thrive at a CAGR of 22.0% over the forecast period of 2022-2030.

Luxury cars are cars with flawless designs, latest features and staggering performance, which as a result makes them highly expensive. On the other hand, pre-owned luxury cars are cheaper but have the same top-notch performance levels that of the new luxury cars. A 3 to 4 year old pre-owned luxury car can be bought for as low as 40.0%-50.0% of its new version’s value.  The cost of pre - owned vehicles, for example a BMW, Audi, Volvo, Mercedes-Benz and Panther Land Wanderer usually revolves around the price range of Rs 25-35 lakhs.

Some of the benefits offered by pre-owned luxury cars include the ease of buying and cost, the slow rate of depreciation, low rates of insurance, customization and environment friendly. Petrolheads, car enthusiasts and passionate drivers who desire to experience driving different high-end cars and not settle with just one or two are among the primary customers of the pre-owned luxury cars.

GROWTH DRIVERS

The burgeoning demand and sales of pre-owned luxury vehicles across the globe, the increasing number of people worldwide aspiring to experience and own a luxury car, the growing preference for personal mobility among people, the rising inclination of luxury car owners to sell their vehicles after 1-2 years in order to upgrade to better models, the soaring priority towards owning a luxury car due to growing living standards and income levels of the common people, the increasing number of aspirational buyers with high disposable incomes looking to upgrade to premium car brands and the surging mindfulness among people on spending and choosing a car that provides them value for money equal to a new car at a marginally lesser price are the primary factors driving the growth if the global pre-owned luxury cars market.

Additionally, the proliferating number of measures of governments including that of the Indian Governments reduction of goods and services tax (GST) on pre-owned luxury cars from 28.0% to 18.0% has significantly reduced the overall price of owing pre-owned luxury cars. These measures along with other government initiatives will aid in relaxing burden of car marketers and at the same time contribute towards the healthy adoption of pre-owned luxury cars among people around the world in the forthcoming years.

Moreover, the number of organized pre-owned luxury vehicle sellers and service providers is growing rapidly across the world. Paperwork processing, conducting technical inspections, offering of up to two years of warranty along with other benefits such customer service, and after-sales service provided by them instill a sense of trust and confidence among buyers which lead to enhanced sales. Also, the introduction of technological innovations powered by augmented reality and virtual reality along with tools using AI, ML and big data to offer new products and solutions for automobile commerce including live virtual tour of vehicles to customers who can experience it in the 3D format are also expected to fuel the growth of the market during the forecast period.

Furthermore, other factors such as the proliferating interest of the younger generation towards exploration of car brands and purchasing a second-hand luxury car at the price of a new entry-level car, the increasing prosperity among buyers, the growing focus of leading carmakers on the pre-owned car segment, the escalating number of companies setting up online platforms wherein the customer could see the available pre-owned car inventory across dealerships, the rising focus of individuals on spending their money judiciously on assets from an investment perspective and the increasing number of tier-2 cities opening up to the concept of buying second-hand luxury cars are anticipated to further augment the growth of the market during the forecast period.

However, factors such as previous ownership record, intensive bargaining, maintenance & warranty are some key areas that remain a concern for the first-time buyers in the unorganized market. This can affect the market negatively up to some extent during the forecast period. Conversely, marquee players across the globe are seen to be addressing these concerns with transparency while offering certified products to the customers, which, in turn is creating new opportunities for the growth of the global market in the near future.

PRE-OWNED LUXURY CARS MARKET SEGMENTATION

By Vehicle Type

·         Hatchback

·         Sedan

·         SUV

By Drive Type

·         IC Engine

·         Electric

By Price Range

·         INR 20 Lakh - 50 Lakh

·         INR 50 Lakh - 80 Lakh

·         Above INR 80 Lakh

By Business Type

·         Organized

·         Dealerships

·         Multi-brand showrooms

·         Online Portals

·         Unorganized

·         Customer-to-Customer

·         Brokers

·         Mechanics

·         Newspaper Advertisements

By End-User

·         Individual

·         Corporate

·         Sports Organization

·         Associations

·         Others

By Region

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

Based on vehicle type, the SUV segment is expected to witness the highest growth in the market in the forecast period. The growth of the segment can be attributed to the rapidly growing sales of pre-owned luxury SUVs due to the increasing shifting of buyers focus on luxury SUV from luxury sedans and luxury hatchbacks due to their extra space and comfort.

Based on business type, the organized segment dominated the global pre-owned luxury cars market in 2021 by capturing a market share of over 65.0%. The segment is expected to further grow at the highest growth rate and continue to lead the market over the forecast period. This can be attributed to the increasing number of luxury car manufacturers entering the pre-owned segment, the growing number of agents increasing their reach via social media, the emergence of online web portals as a popular way to find pre-owned cars and to connect with their owners and the growing focus of companies on establishing and launching e-commerce platforms and certified pre-owned programmes for increasing their online sales across regions. The unorganized segment held a prominent share in the global pre-owned luxury cars market in 2021. The customer-to-customer sub-segment in the unorganized category led the global market for pre-owned luxury cars in 2021.

REGIONAL OUTLOOK

The North American region and the European region accounted for the largest and the second largest shares in the global pre-owned luxury cars market in 2021 and are expected to retain their positions in the market during the forecast. The growth of the market in the regions can be attributed to the pre-exisiting mature market for pre-owned luxury in the developed and matured economies of the region, the fast-paced depreciating value of luxury cars, the increasing presence of HNI and the increasing willingness of owners to upgrade their cars by selling the used models in the region. The U.S. in North America and the Germany in Europe are the major contributors to the growth of the market in the aforementioned regions.

The Asia Pacific region is the fastest growing regional market for pre-owned luxury cars. It is estimated to register growth at a more than healthy CAGR over the forecast period of 2022-2030. The major factors propelling the growth of the market in the region include the growing popularity of pre-owned luxury items in the region, the high demand for luxury vehicles across the emerging nations such and India and China in the region, the increasing number of R&D activities and new product launches along with additional services & benefits by organized channels, the surging inclination of people especially the upper middle class towards investing on luxury cars as a status symbol and the increasing number of government-based initiatives focused at bringing down the cost of buying a pre-owned car in the region. Additionally, the rapidly augmenting population, the increasing purchasing power of the country’s service class and the low penetration of cars are further expected to create significant growth opportunities for the market in the region during the forecast period. The major contributors to the region include India, China, South Korea and Japan with India’s pre-owned luxury car market expanding at 15.0-20.0% annually.

KEY COMPANIES IN PRE-OWNED LUXURY CARS MARKET

·         Mercedes-Benz

·         Big Boy Toyz

·         Marketplace

·         Audi

·         Luxury Ride

·         Autobest

·         Kingsauto

·         Auto Hangar

·         The Car Mall (TCM)

·         Droom

·         Car Dekho

·         Lexus

·         Volvo

·         Other Players