Used luxury cars, a hit with buyers in Hyderabad

Used luxury cars, a hit with buyers in Hyderabad

A garage filled with old, dusty and unused cars of well-known models was a usual sight of a second-hand car outlet until some years ago but in complete contrast are the new clusters of used car outlets which have surfaced in upmarket areas of Jubilee Hills, Banjara Hills, Madhapur and nearby localities. Showcasing SUVs, convertibles, sports and various other models of high-end luxury and imported cars as well as bikes, these showrooms target customers are the growing number of upwardly mobile denizens ranging from students, businessmen, movie stars and even politicians. 

The cars on display typically range in the Rs 25 lakhs - Rs 1.5 crore bracket but their depreciation rate is 30 to 50% and hence the demand in the second-hand luxury market. "An average buyer of these luxury cars usually sells them within a year or two and upgrades to a better car model. This way many second-hand luxury cars are flooding the market," says Abhishek Aggarwal of Ingens, who started this outlet a couple of months ago in Madhapur. His showroom showcases only those used cars that are priced above Rs 15 lakhs. "We have been selling close to 15 cars every month. Recently we sold a used BMW Z4 for about Rs 50 lakhs, and when it comes to bikes we have sold a couple of used Harley Davidson bikes," he said. 

With a minimum maintenance cost of Rs 20,000 to even Rs one lakh annually, car lovers don't mind the 'modest' expense saying they get to own an imported brand for much less than its original price. Usually second-hand showrooms charge a commission from both the buyer and seller but in the case of luxury used cars, they do not charge the seller anything (keeping in mind the huge cost of the vehicle) and the commission is charged from only the buyer which can range anywhere from Rs 30,000 to up to a lakh depending on the car variant. Owners of these showrooms further note that Hyderabad is a fast growing market of luxury cars and stands second to Bangalore in the whole country. 

However, there are also those who feel that this trend is not an easy business model to depend on entirely. "A customer who wants to buy such an expensive used car will take a lot of time to decide. Also, many of these high end and imported cars have very low ground clearance, hence an ideal customer is generally from Jubilee Hills and surrounding areas who end up driving only on these roads which have better maintenance and conditions," said S Ravindra, proprietor, Drive-On cars in Jubilee Hills.