Used Cars and Consumer Buying Decision

According to a study it is shown that consumers have different mindsets when they buy used cars. Their purchase decisions are affected by various aspects such as owner of used car, owner's reputation, price, time after first purchase of the car, the total kilometers run, condition of car, color, transfer of registration (new or renewal), road tax and other issues. Interest rates are one of the prime interests when somebody is looking for used cars. Interest rates for new cars are far below than that for used cars. The duration of repayment for new cars is set to be longer than the used cars. People who plan to buy a car have always two options either they buy a brand new car, or a used car in good condition. There are people who always have dilemma between new car & used cars. Friends and relatives easily affect their buying decisions.


The buying behavior for used car is more complex and long in comparison to new cars. The evaluation stage plays most important roll in the whole buying decision process. Buying used car can be a good option when somebody is planning to buy a new car in next 1-2 years. The buyer should always keep in mind the maintenance cost that he has to bear over the period of time. Nowadays some major players of automobile industry are also looking to tap market for used car. Companies are planning to open company owned showrooms for used cars. Market for used cars is gradually increasing. Consumers should be aware of the present market trend and all used car related information, before buying.