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Residual Values and Total Cost of Ownership (TCO) are paramount for Luxury Car buyers

Posted By: Sachin Murdeshwar December 6, 2016

Mumbai, 6 December, 2016 (GPN) : Indianbluebook releases its insights on residual values of major brands in the Luxury segment

Indian luxury car segment is still in nascent stage with 3 brands dominating over 90% of market
Online searches for premium  brands is over 7% of total car searches compared to the 1% share of sales they represent, which implies luxury brands have a high aspirational element for the Indian consumer
Demonetisation of high value currency is expected to have adverse short term impact both on the sales of luxury new cars and pre-owned cars
Premium cars are popular in  the pre-owned car industry and their certification are an important driver of this segment’s growth
While analysing the popular models through the lens of residuals we found that
Normalizing on-road pricing for major content, BMW vehicles tend to get a premium over Audi and Mercedes vehicles
Mercedes has service costs that are lower by 24% and 29% compared to Audi and BMW respectively
Residuals of premium brands indicate a 50% depreciation in 3 years making them extremely popular in the pre-owned car segment
Total cost of Ownership (TCO) of a luxury car is expected to be over 60% of the on-road car price over 3 year ownership period
Leasing with buy back guarantees are expected to propel the growth of the luxury car segment (albeit from a small base) in the coming years. These guarantees provide “peace of mind” to the consumer

www.indianbluebook.com, the industry first pricing and analytics platform for new and pre-owned vehicles in India, today released its study on the “RESIDUAL VALUE ANALYSIS OF LUXURY CAR SEGMENT”. The report throws light into how cost of ownership is becoming an important parameter for customers in the luxury segment. This report is part of series of insights which the company is releasing. Indianbluebook.com has access to thousands of used car transactions every month across retail and wholesale channels. The company mines this data on a continuous basis to provide customers information that would enable them to make prudent car buying and selling decisions.

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.