How is Luxury Ride changing online marketplace for pre-owned luxury cars?

Luxury Ride is the one-stop-solution for pre-owned luxury cars and after car sales services at an affordable cost. They have given the entire industry a new normal and started with 3S service in mega showrooms; provides a 15-day money-back guarantee, premium financing options, best insurance deals. It also provides a buyback guarantee to ensure a hassle-free experience for its customers. The company has a wide range of most premium luxury brands. Some major names include Audi, BMW, Mercedes, Porsche, Volvo, Jaguar, Lexus, Toyota, Mini Cooper, Volkswagen and Land Rover to Bentley.

The Co-Founders - Sumit Garg, a passionate individual who has a love and understanding of cars; Dhianu Das, who comes with a lot of experience and understand this industry well. With CiOL, Sumit outlines what the market for Luxury Ride looks like, and the disruption it has caused.

The Customer

Due to the COVID-19 pandemic, the preference of consumers has majorly shifted. They are opting for personal mobility, as it is much safer and gives a sense of belonging. People now prefer pre-owned luxury cars over new cars as they are mindful about spending, and are choosing a product that provides them value for money equivalent to a new car at a much lesser price, which meets, both, their budget and their high demand. There is a huge demand coming from tier II, tier III and other cities of India. We also have a higher customer retention rate which is 98%. All our customers are not only satisfied with the cars we sell but also love our after car sales services at an affordable rate with quality service.

The Challenge and the Solution

The current pain points in the pre-owned luxury cars segment are procuring good vehicles and we at Luxury Ride keeps a rigorous quality check before buying the cars. Our ratio to procure a car is 2 out of 10. At Luxury Ride, we are overcoming the challenge by onboarding more trained professionals and upskilling them from time to time so that they can procure pre-owned luxury cars which are in a good condition.

The Implementation

The pandemic was a boon for the overall second-hand car market. We have seen online sales gripping up. 60% of our sales come from online. We have now queries and conversions coming from the smaller cities of India, with participation from tier II, III and other cities of India, especially, North India.

Results

The Indian used car market was valued at USD 24.24 billion in 2019, and it is expected to register a CAGR of 15.12% during the forecast period (2020-2025). The used car market evolved in the country, with the growth of the organized and semi-organized sector. The pre-owned car or used car market crossed the 4 million units mark in FY 2018. This states that the used car market is 1.3 times the new car market. The revision of the GST rate on used cars from 28% to 12-18% has been a key factor in the industry growth.

The used car market is witnessing a boom in the country, with the demand for luxury cars continually increasing. Until few years, owning a luxury car was a dream for many consumers, mainly because of the financial hurdles. But this is gradually changing. Now, consumers can easily buy used luxury vehicles. Heavy depreciation in luxury car prices has made these vehicles, a preferred choice in the used car market. Some major factors driving the growth of the used luxury cars are as follows – high rate of depreciation value of the luxury cars, the fast-growing base of young population, increasing disposable income of the consumers (along with rapid urbanization), and growing internet penetration in non-metros.