Park+ Research Labs, India’s leading digital-first auto insights platform, has unveiled the findings of its latest nationwide survey, highlighting a significant shift in the mindset of first-time car buyers. Based on responses from over 9,000 individuals who purchased their first car in the past year, the study reveals a sharp decline in consumer trust toward the used car market.
Key findings:
- 77% first-time buyers opted for a new car, indicating a major shift in preference.
- 81% believe used car prices are artificially inflated—largely due to large, organized players.
- 65% who considered used cars dropped out due to negative peer experiences or online reviews.
- 73% trust local car dealers over large, organized used car startups.
- Legal issues, poor RC transfer processes, and lack of human connection emerged as top concerns.
Prices for used cars are considered exorbitant
Nearly 81% of participants in the Park+ survey believed that used car prices are artificially inflated, frequently matching or surpassing new car prices, even though 90% of used car transactions in India take place under the ₹10 lakh price point (Deloitte). New cars are increasingly viewed as providing better value for money due to the increase in financing options and enhanced after-sales support.
A bad purchasing experience erodes trust
Sixty-five percent of those who looked into used cars ultimately gave up, citing bad experiences, which included everything from RC transfer delays and legal issues to unfavorable word-of-mouth and internet reviews. Even well-run platforms were unable to inspire trust. As major deterrents, 43% mentioned legal concerns, 22% mentioned RC transfer delays, and 11% mentioned unfavorable internet reviews.
Local dealers still win on trust
In a surprising outcome, 73% of first-time car buyers said they trust local car dealers more than digital-first used car platforms. The human connection (53%), ability to negotiate personally (31%), and transparent interactions were cited as the main reasons. In contrast, organized players were perceived as impersonal, overpromising, and underdelivering (14%).
Legal complexities and lack of transparency
The survey highlighted the legal mess that surrounds many used car transactions—fraud, ownership disputes, and documentation issues were frequently mentioned. Respondents called for more accountability, smoother RC transfers, and regulated pricing.
