- Rising demand for preowned cars in the Rs 4 lakh to Rs 6 lakh price range
Spinny, India’s leading used-car platform, has witnessed rising demand for preowned cars through its contactless digital modes. As a full-stack used-car platform, Spinny sold 9,100-plus used cars till 2020, with a 38% referral purchase rate. More than 70% of used cars are purchased by those under 40 years.
Out of the 1,200 used cars sold each month since January 2021, 70% have been via home test drives and deliveries – a testimony to the trust in the quality of its cars and the information available online. 80% of used cars in Bangalore were sold via home drives. While almost 70% are first-time car buyers who earlier relied on public transport and shared cabs, more than 20% of car buyers have been women. The ownership cycles too have gone down; leading to new cars coming into the pre-owned vehicle market. For example, as per a Times of India report, used cars in Delhi and NCR are the cheapest as well as see new vehicles more, since the average ownership period has dropped from 7 to 4 years.
Spinny was the first to offer a completely contactless car buying and selling experience via #WithExtraCare – an initiative with home test drives and home delivery. Spinny 360 is an industry-first feature providing a 360-degree, detailed view of every Spinny Assured vehicle available in each city’s inventory. For people selling cars, Sellright by Spinny offers an assurance of the best price, instant online quotes, free doorstep inspection and instant payment without middlemen.
The new normal has seen a rise in demand for pre-owned cars priced between Rs 4 lakh and R s6 lakh. This trend has been witnessed within used cars in Hyderabad, Mumbai and many other cities. Compared to 2020, there has been a 400% rise in queries and a 10% jump in sales from women car buyers. Going by the Company’s survey, 71% of buyers cited its contactless experience as the key reason to choose Spinny, besides the quality as well as its fair and fixed pricing of cars.
Presently, Spinny has hubs in Noida, Delhi (two), Gurgaon, Pune, Hyderabad, Bangalore, Mumbai, Chennai, Ahmedabad and Kolkata. One report estimates that the used-car market will reach up to 7.2 million annual units by 2022. A 2020 survey by Deloitte notes that 77% of consumers wish to limit public transport usage while 70% seek to altogether avoid ride-hailing options and 79% intend to own a vehicle. But trust and transparency barriers need to be overcome in the used-car segment.
According to Spinny CEO & Founder Niraj Singh, “As per a survey conducted earlier, barely 4% of people were satisfied with their used-car buying experience. Such revelations spurred Spinny to keep trust, transparency and simplicity as one of the hallmarks of their customer buying experience. Its full-stack model means the platform has end-to-end ownership of every step while buying or selling a car for each customer. Beginning with a customer’s first visit to its portal to the test drive and financing options, Spinny manages all processes.
Our top-of-mind concern as we foray into new cities is to maintain and indeed further the quality of our buying and selling experience. Our emphasis on quality and the extra mile we go as a customer-centric service brand has helped us earn credibility and consumer trust. With the ongoing pandemic, it is evident that every decision needs to be backed by strong safety and social distancing measures and Spinny sets the industry standard in safety and convenience to create a delightful car buying or selling experience for our customers.”
To address quality and trust issues plus pandemic-related concerns, Spinny launched many initiatives. These include Spinny 360, Fixed-price Assurance, Spinny BuyBack, 5-Day Money-Back Guarantee and 1-Year Warranty. These have set new industry benchmarks in safe, simple, contactless car buying and selling experiences, making ownership more economical and feasible than rental/subscription models.
Fixed Price Assurance eliminates needless price negotiations, limiting the number of interactions for buying a used car. This is a game-changer as worldwide negotiations are the norm in the segment. Spinny Buyback offers a guaranteed future resale value for 6, 12 or 18 months from the purchase date. Sellers also receive the best price for their old car. Buyback values are calculated as per the car year, make, fuel type and market trends.
While customers can get finance and have the car delivered home, the first step is choosing from more than 1,200 inspected, preowned cars (2012 make or later) listed online. A virtual tour helps them make an informed choice from their home. Next, the customer books the home test drive of a fully-sanitised car, which comes with a customer safety kit. A 200-point inspection check ensures transparency and quality in car details.
Once the decision is made, the requisite documents are uploaded along with payment details. After the payment is processed, the car is delivered to the buyer’s doorstep backed by a ‘no questions asked, 5-day money-back
Meanwhile, tailwinds in the used-car segment have grown stronger in recent years. The auto sector’s transition to BS-VI norms in April 2020 boosted the value proposition of preowned cars. Today, social distancing requirements continue driving greater demand for used cars.