As per the automobile industry, the value of the new car depreciates by 30% within a year of its purchase. This pushes the used car market, where customers can save some money from their pockets and still own a car.
Also, with social distancing and COVID19 safety norms, buyers are more inclined towards personal mobility. This choice for owning a vehicle is satisfied by the used-car market at a price much lesser than a new purchase.
Reduction in Ownership period
There's a parallel between the used-car market growth and vehicle ownership. Earlier, the car owner held the vehicle for 6-7 years before purchasing a new one.
By 2021, the automobile industry saw another change, where the ownership period had reduced to 3.5 years. It implies a new car will be listed in the pre-owned marketplace within 4 years at a much lesser price, satisfying the used-car customers' demand.
Digitalization has transformed operations in various sectors, including the automobile industry. The change in customer purchase behavior has boosted the online platform for pre-owned cars. The digital marketplace opens a wide range of options to the customers, along with security, transparency(car photos), and convenience(easy and fast comparison).
To sell more, you need an influential digital presence, and that's where Spyne helps you by generating studio-setting car images at a much lesser cost and faster speed.
Demand for used luxury cars
A luxury car puts more weight on buyers' pockets, which ends up being a dream car. The shift towards used-car in the automobile industry has made these cars affordable at sedan prices from a lower segment.
When the industry faced a decline in car ownership, it included selling or exchanging premium or luxury cars. Also, the market value of these cars depreciates faster than standard cars, thus the chances of finding these cars within 1 - 2 years of their purchase are more.
When the industry buyers are ready, are you? The car dealers need to pace with digitalization, in simpler terms, they should be ready to sell online.
The aspirations of second-hand car buyers will drive the preowned car market to grow in the next few years due to: less cost, more reliability, and saving money on taxes. The automobile industry should buckle up for more used-car sales and online purchases.
Companies like Droom, OLX, OLA, Car24, etc are already leading the market with their online selling marketplace. Most of the used car sellers have found a creative way to gain many customers and sell more cars by investing in photography sessions for studio-quality photo shoots.
The studio-like photoshoot for used-car makes them look new and eye-catching, which attracts customers. However, professionals at studios are expensive and it takes time for them to get back to you with the photos.
This is where Spyne AI-based photoshoots create studio-like photos in less than 10 seconds. It doesn't matter if you have a good camera, AI will automatically create studio-like photos without actually setting up a studio at 1/4th cost and 500x speed.
The high-quality product images will make your listings more attractive and will give you a higher chance of closing deals. It is a quick way to sell your used cars giving you an edge over other dealerships.