What do you think is driving the used cars market high in recent years? There can be many reasons to buy used cars including, low depreciation, and registration charges, but the one reason that drags the customer to think of used cars is the "price". The ultimate reason for a customer to buy a used car is usually owning it at a cheaper price for better quality. Though new cars are in demand, most customers at present are attracted to the used cars due to their smart prices. 

Automotive companies have come up with a new business strategy of revealing car prices with the help of AI. Smart pricing involves the method of using artificial intelligence and revealing to the customers the car price based on the overall market value. Keeping the prices at a smarter pace automatically pulls the attention of buyers. Just because the consumers prefer more affordable mobility solutions during the pandemic, the online used car market is experiencing an increased uptake. According to Deloitte, the online used car market has increased 17-18% in FY21. According to a report by Indian Blue Book, an online vehicle pricing guide, the industry volume of used cars was pegged at 3.9 million units in FY21; in FY20, this number was 1.4 million.

We are here to learn about how smart pricing keeps the used car market busy and standard. Read the whole article to have a complete understanding.

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Go Instant! The online used car market is instant now!

• Shifting toward digital marketing strategies itself is a stepping stone to success. Online used car business must involve instant performance like paperless and instant loan documents, instant loan verification, instant price evaluation, and all about being instant.
• The customers do not prefer waiting, and going instant is something that drives them to your business lane without a second thought. Investing their money in a used car has the advantage of driving the car home instantly without any waiting period. 
• Instant pricing estimations with artificial intelligence are an added advantage for the company to market the product by making the customer seek the cars best for them.
• Cars24 is now offering features like video KYC, home inspections, and instant credit. “Despite high competition, we have witnessed about 50% growth over the pre-Covid period. Customers look for end-to-end support and buyback options, but the market doesn’t have such features. The NBFC feature has allowed us to deeply integrate and enhance our customer trust,” says Kunal Mundra, CEO, Cars India, Cars24. The platform has a seven days no-questions-asked refund policy, and a six-month warranty cover on cars purchased.
• Meanwhile, Mahindra First Choice Wheels claims to have witnessed 20% growth in FY21 on its online platform. These online platforms give bulk smart pricing options where the customers can settle for deep discussions before choosing the right one.

Increasing Expeditions

• Though most automotive businesses still give a touching experience to the customers, the coming years will force them to change their policies on going digital. While the demand for used cars is seeing an uptick, the lack of adequate working capital has been an impediment. 
• According to Deloitte, "Companies are coming up with innovative ideas of supporting the dealers, making the market more lucrative.” For example, financial services in Kuwy provide vehicle loans to customers and financial assistance to its channel partners. This is an added bonus that other companies are yet to implement.
• “With an increased number of refurbished models and more OEMs entering this ecosystem, the pre-owned car market may become twice the size of the new car market by 2024,” says Kaushik Madhavan, vice president – mobility, Frost & Sullivan.
• The sellers' analysis also looks at information from over 300-point inspections performed on vehicles, as well as a picture of the auto and the engine sounds. The system can determine the price "within a second,".
• Droom Technology sells new and used vehicles online, and also uses AI analysis. The company applied last year for an initial public offering and expects to raise as much as 30 billion rupees, filings with the Securities and Exchange Board of India show.
• The used car startups with AI tech, are finding opportunities overseas in markets with a similar lack of transparency in pricing.

Conclusion

Keeping the car prices transparent is a wise idea and at the same time, the main effort lies in the way AI is used and performed. Kuwy helps you find the car prices and car health for the choice of car preferred. And it all happens instantly. With no paperwork, you can drive your car home.

For more details, approach us via phone or email. Download Kuwy for the best assistance with used cars.

Happy Learning!!