India’s booming used car market may be headed for a reality check. According to a recent nationwide survey by Park+ Research Labs, a staggering 77% of first-time car buyers chose to skip the pre-owned route and instead purchased new vehicles, citing inflated pricing, lack of trust, and legal complexities as key reasons for their decision.
The survey, which polled over 9,000 first-time car buyers across India, offers a comprehensive look at changing consumer sentiment in the entry-level automotive space. A dominant 81% of respondents believe used car prices are artificially inflated, with many stating that listed prices often rival or exceed those of brand-new models. Despite the fact that 90% of used car transactions happen below ₹10 lakh, affordability no longer appears to be a strong enough hook for today’s buyers—particularly when easy financing and after-sales benefits accompany new purchases.
Moreover, 65% of buyers who initially considered used cars backed out, often after negative word-of-mouth or poor online reviews. Major concerns included delays in RC (Registration Certificate) transfers, unclear ownership histories, and even legal issues—especially when dealing with organized, pan-India second-hand car startups.
Interestingly, the research highlights that 73% of first-time buyers place more trust in local car dealers than in well-funded digital platforms. Reasons cited include the “human connection” (53%), personal negotiation ability (31%), and more transparent interactions. By contrast, large players were seen as impersonal, overpromising, and underdelivering, with only 14% of respondents trusting organized used-car platforms.
Respondents called attention to a series of roadblocks that continue to plague the used car space. These include fraud risks, ownership disputes, and RC/documentation delays. In total, 43% highlighted legal hassles, 22% pointed to delays in RC transfer, and 11% referenced negative digital feedback as deterrents.
Park+ Research Labs’ findings underscore a growing demand for greater transparency, smoother legal processes, and pricing regulation in India’s used car industry. As the market matures, platforms that can blend digital efficiency with human trust may be best positioned to regain ground with today’s cautious, value-conscious buyers.
