India is no stranger to luxury cars. During the British Era, when there were no Indian car manufacturing companies, foreign companies such as Morris and Rolls Royce were the suppliers of cars in the Indian market. With the Swadeshi movement and thereafter independence of India, the importance of foreign made cars reduced. However, when the Indian economy was thrown open and made a part of globalization, foreign cars such as Honda, Ford, Toyota, Hyundai and Chevrolet made a foray into the Indian car market. Foreign car makers too started treating India as a growing and formidable market and they too started supplying cars to the India’s car market. Today, a large number of luxury foreign car brands are available in the country such as Mercedes Benz, BMW, Audi, Range Rover, Jaguar and Bentley. These cars not only perform well but are also a class apart from others in terms of comfort and looks.
Undoubtedly, the Indian market is one of the largest for Indian car makers. Mercedes Benz treats the Indian car market as the second highest growing market even though it sells only 10000 or so units in a year. Such is the potential of used luxury cars that the top luxury car brands of the country have already started their certified used car lines. The trend was started by Mercedes Benz with the Proven Exclusivity line in June of 2010 and it was followed by BMW with the Premium Selection and Audi as well. These lines offer warranty for the cars sold for 2 years and 100,000kms whichever is lesser. Some of the certified used car lines offer different warranty conditions as well. BMW used cars buyers can also avail of the BMW India Road Assistance which is available 24X7 and 365 days of the year. The cars that are sold by these companies are not more than 5 years old and they are also refurbished and checked prior to sales. The used car dealerships were started with the intention of enticing people to trade-in their old cars for premium quality ones.
If you have a budget of Rs 20 lakhs or so for buying a car and are confused between brand new C segment cars or luxury cars, then it would be best if you opt for used luxury cars. For this budget, you can buy good quality Mercedes Benz and BMW used cars which cost around Rs 25 lakhs to Rs 30 lakhs. The value of cars depreciate once they are out of the showroom and hence upon losing their value, these cars become lucrative deals for those with a budget of Rs 20 lakhs for buying a car. Not only does owning a Mercedes Benz a status symbol but also it is a better performing car. Compared to a Toyota Camry or a Skoda Superb, a Mercedes Benz would provide your better performance and last longer. Moreover, if you opt for purchasing the car from a certified luxury car dealer, then you would not have to worry about the quality of the car also because it has been ascertained by the dealer. Expensive luxury cars are not usually chauffeur driven and owners take a lot of care when they drive around these cars.
The luxury used car market is increasing at a lightning pace and it is evident that the market would become an important one in the coming future. Luxury cars currently form only 5 percent of the used car market, but their growth has been pegged at 35 percent which shows that it is slated to become important in the coming future.
Financing options for these cars are also quite a few. Financing companies are quite eager to offer loans to customers of used luxury cars because they are usually ones with good credit history and loan repayment records. Most of the buyers of used luxury cars are those who want to upgrade from C segment cars such as Skoda Octavia or the Honda Civic. The interest rate at which financiers offer loans to used luxury car buyers is around 11 percent which is comparable to the rate that they would be offered to buy a car of similar price. Usually, financiers offer loans for affordable used cars at 15 percent or so. Because of the faith they have in used car buyers, they offer them at lower prices.
BMW used cars can not only be bought from the certified luxury used car showroom but also from online car selling websites. These sites have listed on them not only the popular used cars but also brands such as Porsche, Mini Cooper, Land Rover etc. The price bracket in which these cars are available is around Rs 20 lakhs to Rs 35 lakhs. The contact information of the seller is also made available on the website so can get in touch with the seller to find out more.
Prior to buying used luxury cars, buyers must ascertain the condition of the car by driving it around. Test driving the car on both highway and city roads would allow you to assess how the car performs. Listen for sounds when you fire up the engine, suddenly brake the car or go over speed breakers. If you here vibration from the engine or noise, then you should avoid these cars as they may have some problem with their engine.
You can also use the online price calculators for cars in order to find out the true price of a luxury car. All you have to do is enter the specs and the website would show you the best price for the car.
Buying used luxury cars can be quite beneficial because they shall perform well and last longer than other less premium brands. They are a status symbol and most of these cars have been maintained well, which is why you need not worry about a noisy engine or a shot suspension. With careful selection, you can get the best possible BMW used cars for yourself.
India is a confusing market for automobile companies. The world’s biggest democracy is known for its fluctuating consumer behavior and changing trends. Nowhere is this more visible than the Indian automobile market. Indian customers are sparking growth across two extreme poles of the value chain. The mid range segments are steadily losing out on customers. Why is this happening? The entry level hatchback, sedan and compact SUV segments are finding more takers than before owing to lower prices, better features and branding initiatives. Alongside, the luxury car segment has been growing steadily and luring customers away from mid range or high end SUV’s and sedans. People either want to shell out a little more for the exclusivity and brand value that comes with a luxury car purchase or spend less in acquiring entry level aspirational models with better features.
However, the Indian luxury car market is growing by leaps and bounds especially for foreign luxury car manufacturers. India was earlier a restricted market for luxury car manufacturers. The luxury brands like BMW, Mercedes Benz or even Audi were only witnessed in films and at auto shows and expos. However, the scenario has totally changed in recent times. The economy has expanded and so has disposable incomes of citizens in the country. Alongside, the number of Indian entrepreneurs, successful businessmen, high flying professionals and corporates along with celebrities has been on the rise throughout the last few years. India is a prominent entrant into the billionaires and millionaires clubs with many members doing it proud in various sectors.
Luxury cars are a newly acquired taste for the automobile crazy India. However, foreign car manufacturers are not being able to ignore the Indian market anymore. They are rushing to set up shop in India and are expanding their dealerships and service networks. India is steadily graduating towards becoming a priority market for these luxury car brands and this augurs well for the future. Markets in the West are clogged up due to the global slowdown and industrial fluctuations. India is a future market that can yield rich returns if tapped properly according to the managing director of Segment Y Automotive Intelligence, Paul Blokland. According to him, manufacturers of luxury cars are seeking new markets that offer the promise of growth.
These markets cannot be found in the United States of America or Europe anymore. Even Japan cannot be a very lucrative prospect for manufacturers of foreign luxury cars. India is a country where approximately one percent of the entire billion plus population has the means to buy a car. India is still far behind China which is the largest emerging market for cars in the whole world, the size of the market is the winning factor here. The size of the market gives it a potential that is vast and exciting for any industry and sector and automobiles are no exception. Foreign car makers cannot resist the lure of the huge and untapped Indian automobile market. Even till a decade earlier, the only prominent luxury car brand present in India was Mercedes Benz.
BMW set up shop in the country only in the year 2006 and Audi came to town soon thereafter. Top end business is only about 0.5% of the overall car market in India but luxury car brands are witnessing top class sales figures. These sales figures are much better than countries where luxury car brands have been present for close to fifty years including Thailand and Malaysia among others. The total sales figures may seem tiny even now with just about 9, 000 luxury vehicles sold among 1.8 million cars sold overall last year in India. However, the slow and patient approach of luxury car makers is paying rich dividends now. According to Blokland, most luxury car companies doing business in India are very happy with their overall sales figures and statistics including Lamborghini and Rolls Royce which are the giants in this space.
Luxury car makers have not had it easy with regard to tapping into the unpredictable automobile market in India. The economy is unpredictable and Indians have always preferred vehicles that are cheap, compact and efficient with regard to fuel consumption. This is a historic trait that has come down through the ages right from the iconic Maruti 800. The Tata Nano has been a huge hit and sensation and the company has been coming out with newer models to satiate huge demand for this feature packed, tiny car which is also the cheapest car in India. According to the managing director and president of General Motors India, Karl Slym, the company brought out the Chevrolet Beat hatchback and had to typically give it some Indian flavors. These changes included tweaking the suspension to take on harsh road conditions. Alongside, the suspension system of the Beat was strengthened and made tougher. The transmission system was also changed and made more efficient in order to help Indian customers brave harsh conditions on roads.
Foreign luxury car manufacturers have kept their product offerings intact in the country. They have been facing multiple challenges with regard to finding a market niche for themselves. Traffic jams, lack of open road space and other impediments have essentially forced Indian customers to opt for functionality over form based aspects. Those who desire a ride that is premium and stylish, have to pay hugely for the same. The import duties which go up to more than 100 percent double the price tags of foreign cars. This has forced Mercedes Benz and BMW to assemble a few models locally in India and this brings down taxes and duties by a huge amount. BMW India president, Peter Kronschnabl talks about how the company discovered the true nature of the Indian luxury car connoisseur. Indian customers could afford luxury vehicles but would not really do anything special to purchase the same. As a result, BMW invested in dealerships, showrooms and also showcased both the driving and chauffeur driven experience to its customer base in India. These efforts have borne fruit as BMW finished last year as the top selling luxury foreign car manufacturer in India. According to experts, this is just the topping on the iceberg to come!
