Pre-owned is the NEW LUXURY

Anyone can own a luxury car, if they truly desire one. But, real luxury isn’t measured by mileage. It’s etched in the stories that the car carries. A pre-owned luxury vehicle offers more than prestige, it’s a testament to enduring craftsmanship, rich history, and timeless character. And, all that at an affordable cost. This blend of heritage and value is what makes the pre-owned luxury car market not just accessible, but extraordinary. To learn more about the growing pre-owned luxury car market, we spoke with Himanshu Arya, Founder and CEO of Luxury Cart. Here’s what he had to say

Corporate Citizen: Explain us the premise of the pre-owned luxury car market and walk us through how this industry operates, particularly in India?

Himanshu Arya: The pre-owned luxury car market has expanded significantly, offering customers the chance to enjoy high-end vehicles without the hefty price tag, all while maintaining that coveted premium experience. In 2024, new luxury car sales reached around 50,000 units, while pre-owned luxury cars outsold them at 80,000 units. Truthfully, they are selling extremely well, showing that used luxury cars sell 1.6 times more than new ones. This industry thrives through various channels such as manufacturer certified pre-owned schemes, independent dealerships, and online marketplaces. Key reasons for this surge include consumers becoming more value-conscious, stronger confidence in pre-owned vehicles, and a rising number of high-net-worth individuals.

CC: What emotions does a person typically experience before purchasing a pre-owned luxury car, and what are the key motivations behind this decision?

A typical buyer is a professional, earning Rs. 70 to 80 lakh annually, or part of a dual-income household with combined earnings nearing one crore. When these buyers consider a preowned luxury car, they visibly experience a mix of emotions. For them, it represents pride, happiness and contentment, with a strong sense of achievement. Yet understandable hesitation remains, as it’s a major financial commitment. They prioritise brand prestige but equally seek peace of mind. Post-Covid, car buyers have become more aspirational as they demand style, comfort, luxury, and that extra ‘wow factor’. This industry delivers exactly that.

CC: How does consumer behaviour and luxury mindset shift change in the pre-owned luxury car sector, particularly in markets like India?

Two key factors that are driving this shift are people’s aspiration and perception of status and rising disposable income in urban markets. As a result, India’s pre-owned luxury car market is gaining momentum. Demand is rising, particularly among younger buyers, fueled by growing disposable incomes, rapid urbanisation, and a strong desire for both status and comfort. This trend is no longer confined to major metros, it’s expanding into smaller towns, where aspirational consumers are seeking premium brands without the steep price tag of new cars.

"Today’s buyers are prioritising a mix of sustainability, innovation and value, not just brand prestige. This evolving mindset, along with trusted refurbishment initiatives, is driving demand and making luxury EVs more accessible"

— Himanshu Arya

CC: What are the advantages of buying a pre-owned luxury car instead of a new one?

When investing in luxury, buyers seek unmatched value, and pre-owned luxury cars deliver exactly that. These vehicles offer the perfect blend of aspiration and affordability, allowing customers to enjoy high-end features, premium performance, and prestigious branding without the steep price tag of a new model. One of the biggest advantages? Slower depreciation. Unlike new luxury cars, which lose significant value in the first few years, pre-owned models have already undergone their steepest decline, ensuring better long-term value for owners. With a pre-owned luxury car, you don’t just drive sophisticatedly, you drive smart.

CC: On the flipside, what are the biggest risks buyers face in the pre-owned luxury car market, and how can they mitigate them?

When buying a used car, the biggest concerns are often hidden, unclear service history, odometer tampering, engine or transmission problems, flood damage, or structural issues, all of which can lead to costly repairs. Spare parts and specialised labour can also add up quickly. However, smart buyers minimise these risks by opting for certified pre-owned vehicles, carefully reviewing maintenance records, arranging independent inspections, and choosing reputable dealers that offer warranties and transparent documentation.

CC: Why pre-owned BMWs and Mercedes are outselling new ones in India?

Brands like BMW and Mercedes-Benz are driving growth in India’s pre-owned luxury car market. Greater affordability, shifting consumer perceptions, and fading stigmas, especially among younger buyers, are the key factors. Organised players and flexible financing options have further boosted demand. Mercedes-Benz leads with a 40% market share, followed by BMW at 30-35%. Niche brands like Lexus and Porsche continue to serve their loyal customers. OEM-backed programmes, such as three year buyback schemes (retaining 45% of original value), ensure a steady supply of quality pre-owned vehicles. The trend reflects a broader shift. Luxury is no longer just about buying new, but smarter.

CC: How is the global shift toward electric vehicles (EVs) impacting the pre-owned luxury car market, particularly in terms of demand, pricing, and consumer behaviour?

The shift toward EVs is transforming the pre-owned luxury car segment, reflecting growing consumer awareness about sustainability. While rapid tech advancements and battery concerns contribute to faster depreciation, certified pre-owned programmes are boosting buyer confidence. Today’s buyers are prioritising a mix of sustainability, innovation, value, and not just brand prestige. This evolving mindset, along with trusted refurbishment initiatives, is driving demand and making luxury EVs more accessible. The future is green, and the market is adapting.

CC: Is the global chip shortage still impacting the used car industry?

Fortunately, the once chip shortage issues that significantly affected the automotive industry has eased up. While there may still be occasional constraints, particularly for advanced driver assistance systems, the situation has improved considerably. Most models are now readily available, and waiting times that once stretched to years during the Covid-19 period, have reduced to just a few weeks or even immediate availability in many cases. As a result, the production of new vehicles has normalised, which is also helping stabilise the availability and pricing of late model pre-owned cars.

"Younger buyers aren’t just chasing status, they’re making smarter and more sustainable choices. A recent survey found that 63% of Gen Z and millennials prefer pre-owned luxury cars, seeing them to enjoy premium brands without environmental guilt"

CC: How is the younger generation perceiving this sector?

Today’s younger buyers aren’t just chasing status, they’re making smarter and more sustainable choices. A recent survey found that 63% of Gen Z and millennials prefer pre-owned luxury cars, seeing them to enjoy premium brands without environmental guilt. By giving these vehicles a second life, they’re cutting down on manufacturing waste and emissions, proving that luxury can be both aspirational and responsible. Add in the appeal of lower prices, and it’s clear that the pre-owned market isn’t just growing, it’s evolving with the values of a new generation.

CC: What should buyers look for when inspecting a pre-owned luxury car?

When evaluating a pre-owned luxury car, thorough research and careful inspection are key. Start by studying the brand and specific model to understand its reliability, common issues, and market value. Always take a test drive as it is essential to assess performance, handling and comfort. Before finalising the purchase, meticulously review the vehicle’s service history, mileage, accident records, and ownership documents to ensure transparency. Pay close attention to interior wear and tear, and don’t overlook the condition of the tyres and brakes. Test all electronic features such as infotainment systems, climate control, and advanced driver aids, to confirm they’re fully operational. A professional inspection will give you a peace of mind. And, if available, opting for a certified pre-owned (CPO) vehicle with an extended warranty can provide extra reassurance and long-term protection.