“I prefer to pay more for a bigger better car: Used car buyer’s perspective”- Part 3
In earlier parts of the article we discovered how customers are paying higher prices for older cars that has run longer miles.
Is it because customers are less discerning and ready to compromise on quality? Answer is an emphatic NO.
Here we look into the factors that are not stopping them from paying more for these car
With growing interest in the organized used car market, the need to provide high quality cars has risen. As observed in our research, quality and trust in the dealer are paramount for the customer before he makes the purchase, while condition of the car is the deal breaker or maker.
Today, highly reliable new cars are manufactured which can easily last for over 20 years.Used car industry which was largely fragmented and unorganized has become more organized.Also this growth in the organized used car market has increased demand for certification and warranty products on the car. Every dealer now needs to make sure the product sold is of good quality to convince the buyer to pay higher.In fact robust certification process helps the dealer in extending warranty for older cars that has clocked more miles.
With increasing penetration of internet and extensive use of computers in every aspect of automobile transaction, information like service history to insurance records are available to the buyers through research, a lot has changed in the way used car transaction takes place. Today used car purchase is not intuitive but rational and scientific.
Thus through three parts the article; we have found that a discerning used car buyer is no longer a stepbrother to a new car buyer. He is making a different choice, not a compromise. While making this different choice he is in search of value for his buck. He in this aspect is more demanding than a new car buyer and is driven only by rationality and less swayed by the pedigree of brands as a new car buyer.