"The pre-owned car segment is in the middle of very promising revelations" - Sumit Garg, Managing Director and co-founder of Luxury Ride, on the current pre-owned luxury car buying scene in India
Established in 2015, Luxury Ride is the country's biggest chain of dealerships which deals in the buying and selling of pre-owned luxury cars. It has successfully set a strong foothold in North India with 7 showrooms in Delhi, Gurugram, Karnal, Chandigarh, Jaipur, Dehradun, and Ludhiana. Luxury Ride's forte is to shake off the mindset of pre-owned luxury cars being too expensive to maintain. Moreover it also plans to make buying and selling easy and safe with its future contactless plans. We had a chat with Mr. Sumit Garg, Managing Director and co-founder of Luxury Ride to know everything you should consider while buying a pre-owned luxury vehicle and more about the pre-owned luxury car space in general.
Team evo India: Why is there a rapid growth in the pre-owned luxury car segment
Sumit Garg: The volatile automobile industry is giving the desired impetus to the pre-owned luxury car segment. The emerging millennial community as the potential customer base is showing great infinity for the desire to own a luxury car. Liberty of disposable income has acted as a precursor for the market expansion beyond the ambit of ultra-high net worth individuals. But the millennials are highly reasonable in fulfilling their extravagant desire, for which pre-owned luxury car emerges as the most viable option suiting their requirements. The pandemic further strengthened this preposition where social distancing norms and scarcity in public transport mandated personal mobility. But considering that the masses were exercising being financially frugal due to the uncertain time, purchasing an affordable pre-owned luxury car with uncompromising performance and advanced features at the cost of the economical new car proved to be a better bargain.
Team evo India: Why should one go for a pre-owned luxury vehicle
Sumit Garg: Our country is very price-conscious when it comes to purchasing. The depreciation rate of a new car is very high. In the first year itself, the value of the new car depletes by 30%. Hence, purchasing a pre-owned luxury car comes with the performance, accessories, and benefits of a brand-new car that too at a more economical rate. There is quality assurance at a low cost.
One major factor discouraging potential consumers from purchasing the pre-owned car is the skepticism around the unorganized sector. But the initiative taken by the government to introduce GST is legalizing the sector. It is bringing about the unification of the otherwise scattered industry with the help of transparent transactions and assured warranty. Leading industry players are also entering the scene to give end-to-end services to the customers.
Team evo India: What is the correct procedure for buying a pre-owned luxury car?
Sumit Garg: Before locking any car for purchase, thoroughly study the history of the car. Revalidate crucial information like mileage numbers and important documents. The distance traveled will give a clear picture helping one in deciding the worth of the car. Any luxury car beyond 3 years old will give rise to insurance issues that don’t make it a lucrative deal.
Also, make sure to take a test drive, it gives an insight into the feel of the car. It helps the customers understand various factors such as the height of the seat, steering feel, and wheel adjustment.
Team evo India: What other things should a person consider, while buying a luxury car? (Maintenance, service costs etc)
Sumit Garg: Before making any purchase, the customers must secure the necessary documents from the previous owner. Registration certificate to insurance, service books, road tax receipt, vehicle purchase invoice, dual fuel certification, etc. every certificate must be transferred in the name of the new owner to avoid any potential legal implications that could arise in the future.
Team evo India: What is the amount required to keep a luxury vehicle running annually
Sumit Garg: Every vehicle requires maintenance on a regular basis and the cost varies depending on the vehicle. Whether it is an Audi A4, Audi Q7, or GLS, the cost of routine maintenance often ranges from fifteen thousand to thirty thousand . Additionally, there are always some other maintenance costs involved, such as the replacement of tyres every fifty thousand kilometers and the replacement of brake pads as and when required. Luxury Ride has always been really particular when it comes to the maintenance of the luxury cars we sell and with this service we aim to provide the best experience to our customers.
Team evo India: How should one take care of their vehicle, prepare it for journeys, hibernation etc
Sumit Garg: Taking care of your luxury car is always like taking care of your baby. Periodic maintenance and timely servicing must be scheduled for regular check-up of the car. It will ensure healthy working of the engine which must be the top priority of the luxury car owner. Change the engine oil regularly to make sure that the other vital parts of the car are well lubricated for proper functioning. Along with engine oil, replace important fluids like brake oil, power steering oil, transmission oil etc. which lose their effectiveness after usage for a long period of time. Check for any faulty cooling system as it can put the engine at risk by causing the overheating of the engine.
Team evo India: What next? What do you think is the future of the pre-owned car business
Sumit Garg: The pre-owned car segment is in the middle of very promising revelations. The technological revolution initiated due to the pandemic will only give the desired mileage for realizing the exponential growth of the industry. It will integrate data monetization, in-vehicle connectivity, subscriptions, rental, charging, and long-term maintenance packages that will ramp up the organization of the sector at a much faster rate.