Overview:
- 77% of first-time car buyers in India now prefer new cars over used ones
- Used car prices seen as inflated — sometimes nearing new car rates
- Legal hassles & poor RC transfer process are major deterrents
- Local dealers win over large platforms due to trust and human connection
Introduction:
Once the go-to for budget-conscious drivers, the used car market in India may be losing its shine — at least among first-time car buyers. A new survey by Park+ Research Labs, covering over 9,000 respondents, reveals a dramatic shift: a whopping 77% of first-time car buyers now opt for new cars instead of pre-owned ones. Why? It’s not just about price — it’s about trust, transparency, and the value of a human connection.
Used Car Prices Too Close to New
Many buyers now feel that used cars just aren’t worth the risk anymore. With 81% saying used car prices are inflated — sometimes matching or even surpassing new car prices — it’s no surprise that new cars seem like a better deal, especially with better financing options and warranties available.
Bad Experiences Erode Buyer Confidence
It’s not just about money. A solid 65% of buyers who considered used cars eventually gave up, often after bad experiences or warnings from friends and online reviews. The biggest red flags?
- Delays in RC transfer
- Legal documentation issues
- Hidden damages
- Misleading ads
And when legal issues and poor after-sales support creep in, even well-known platforms lose buyer trust.
Why Local Dealers Still Win
In an unexpected twist, 73% of first-time buyers trust local car dealers over big digital-first used car startups. Why? Simple:
- The “human touch” – they value face-to-face negotiations
- Transparency – they can see and test the car in real-time
- Less overpromising – the deal often feels more “real” than on apps
Legal & Process Woes
From fraud to delayed ownership transfers, the used car buying journey is still full of red tape. Over 43% of respondents raised legal concerns, with another 22% highlighting slow RC transfers as a deal-breaker. Buyers are now calling for better regulation and clearer policies.
At a Glance – Key Findings from Park+ Survey
| Key Insight | % Respondents |
|---|---|
| Preferred new cars over used | 77% |
| Believe used car prices are inflated | 81% |
| Dropped out due to bad used car experiences | 65% |
| Trust local dealers more than big platforms | 73% |
| Legal issues cited as a deterrent | 43% |
Conclusion:
India’s used car boom isn’t over, but it’s certainly being re-evaluated. For first-time buyers, the combination of high prices, legal uncertainty, and a lack of trust is steering them toward new cars. Until used car sellers fix these deep-rooted issues, local dealers and new car brands may continue to steal the show.