As the pre-owned luxury car segment is performing well in the volatile automobile industry, experts are anticipating what is in store for the upcoming year. Based on the rising popularity of the segment and consumer behavior, let’s look at some of the trends that will shape the pre-owned luxury car industry in 2023.
1. Acceptable Market
There was a time when consumers were very doubtful about purchasing a pre-owned luxury car. But with efforts being made by the industry players, over the years the segment has been growing at a promising rate. Taking this progress ahead, the year 2023 is expected to expand in terms of more acceptability of the pre-owned luxury cars in the market.
Various factors are spurring the growth of the segment. People are showing great interest in luxury cars for their advanced safety features, comfort, and convenience. They are preferring premium cars for their autonomous driving options, advanced connectivity, entertainment options, and many more features. But purchasing a new luxury car involves a lot of financial obligation. And the changing consumer behavior further complicates this quest of owning a luxury car. With consumers always desiring to upgrade to the latest features and car models, over the years the ownership period has contracted to 4 years which is only expected to shrink to 3.5 years in the future. Given to these factors, consumers are flocking to the pre-owned luxury car market to fulfill their extravagant desire within budget.
Apart from this, it has been observed that the buyers in the pre-owned car market are upgrading themselves to premium models in the range of Rs 25 to 30 lakh against the new premium models in the bracket of Rs 20 to Rs 30 lakh.
2. Rise of Organized Players
Gauging the immense opportunities lying in the segment, in the past years, many organized players have entered the pre-owned luxury car market. They are giving the desired structure to the otherwise scattered sector. In 2023, the number is only going to rise with more new organized players entering the segment. Even the OEMs are making great strides to level up the game by diversifying their offering in the pre-owned luxury car segment.
The players will be diversifying their service with more focus on D2C offerings. As a result, significant steps will be taken in the direction of providing comprehensive services for end-to-end customer satisfaction. Major work will be done in making the entire process a hassle-free experience for the customers. For this, industry players will ensure only certified cars are available in their inventory and they will take care that the vehicle undergoes thorough repairs and check-ups. The segment will see a lot of in-house servicing being added to the offerings for ensuring the customer gets end-to-end car solutions under a single roof. Along with this, more and more players will be expanding their services with respect to easy financing options, insurance, and warranties for making the entire purchasing process a seamless affair.
3. Omnichannel Model
Given the efforts of the organized players, the pre-owned luxury car segment is undergoing a paradigm shift towards the omnichannel model. Apprehending the way forward industry players have realized that relying only on offline showrooms will not suffice the purpose. Living in a digital age, they need to amplify their presence across online and offline platforms to strengthen their proposition in the market. Nowadays, people are becoming tech-savvy and prefer shopping online. They find it more convenient to take virtual tours for navigating the wide gamut of models. Therefore, for providing comprehensive vehicle solutions, the companies will be coming up with their own apps where all the offerings and services will be streamlined in a user-friendly interface.
The new model will enable personalization and customization of services where the customers will be able to avail home test drives, home delivery of vehicles, and many more advantages as per their convenience.
4. SUV Dominating the Market
SUVs have always ruled the market. Looking at its ability to offer a wide range of options from entry-level subcompacts to full-size three-row SUVs in all shapes and sizes, the trend will be carried forward even in 2023. In this, three-row SUVs like Ford Endeavour, Toyota Fortuner, MG Hector Plus, etc. will top the affordability list.
Looking at so many things happening in the pre-owned luxury car segment, it is only going to expand in the upcoming year, increasing its share in the automobile sector as a whole. 2023 can see some major discoveries with EVs entering the pre-owned luxury car segment.