The Old vehicle market or pre-owned automobile market in India has undergone a paradigm shift with a projected growth of 15.10% CAGR from 2024 to 2029. This means the market is expected to reach a value of USD 63.87 billion by 2029, up from USD 31.62 billion in 2024. This growth primarily comes from the evolving trends and customer preferences while selecting an old vehicle.

Post COVID-19, the demand for old vehicles among buyers has exponentially risen, dispelling old myths and taboos associated with them behind. Despite significant advancements in the pre-owned automotive industry, numerous buyers and sellers still cling to outdated myths. Through this article, SAMIL takes an initiative to shed light on the common myths in the old vehicle market.

Read it to burst all myths:

Myth 1: Comprehensive insurance “isn’t worth it” for an old vehicle or car 

You might’ve heard this myth being bandied about – that comprehensive vehicle insurance isn’t worthwhile for an old vehicle or car. But, this really depends on the value of the old vehicle, your financial situation and local risk factors. Depending on the make & model, a classic vintage used car or vehicle with low mileage might still be worth ₹50 lakhs or more commanding higher resale value compared to one with significantly more kilometres on the odometer.

Therefore, investing in comprehensive vehicle insurance for a valuable old vehicle or car is well worth it. It can also offer protection against theft, vandalism or natural disasters. On the other hand, if your old vehicle has upwards of 2,00,000 km on its odometer, then it would be better off opting for another option or investing in third-party insurance.

Myth 2: Old vehicles indulge high maintenance cost

It’s not a universal rule! Advancements in manufacturing and increased availability have made many parts of old vehicle more accessible and cost-effective. Old vehicles built with mechanical simplicity makes easier to understand for owners to engage in do-it-yourself maintenance and repairs, fostering a deeper relationship with your old vehicle.

Myth 3: Old vehicles aren’t fuel efficient

Old vehicles often struggle with poor fuel efficiency, consuming lots of fuel even for short distances. But today, vehicle manufacturers have elevated fuel economy through technological advancements. With a traditional combustion engine, used cars are the best choices for delivering fuel efficiency. Therefore, fuel efficiency is often more dependent on the making of the model than its age. It’s advisable to thoroughly research and compare the fuel efficiency ratings of your shortlisted car models before you choose your perfect old vehicle.

Myth 4: Luxury Cars are not reliable

Old luxury cars aren’t reliable; the common myth in the pre-owned marketplace. With the evolution of safety features and extended warranties, a pre-owned model can actually provide peace of mind. All vehicles regardless of age or price need regular maintenance to ensure their durability and longevity. However, it’s true that recent versions come with cutting-edge technology, contributing to their long-lasting impact. While some older models can be retrofitted, it’s important to consider a number of criteria, including maintenance history, driving conditions, accidents, etc while choosing your ideal old vehicle. Therefore, the reliability of any old car or vehicle depends on its care, not just its age.

Myth 5: Old vehicles have poor resale value

The market value of any vehicle experiences depreciation once it’s sold. Contrary to popular belief, old vehicles can still command a fair resale price. There are various factors affecting the resale value of old vehicles or car such as vehicle history, mileage, age, brand, fuel economy, colours, modifications and previous owner.

Before you make the final payment, the most crucial step is to check vehicle’s chassis number via official online portals of authorities to uncover any accidents or major repairs records. Flooded-damaged cars or major repaired vehicles should be red flagged. Interestingly, well-maintained old cars or vehicles equipped with advanced technology and low mileage can retain a high resale value surprisingly.

Myth 6: No warranty for old vehicles

When purchasing an old vehicle or car, warranties provide buyers and sellers a sense of security despite the fact, that this applied to some services. The availability of warranties often depends on a combination of the platform and the brand. Online Marketplaces or dealerships often extends fair deals with auto warranties.

Through this, buyers can enhance the protection of their old vehicle or car investment while enjoying a peace of mind on the road. There are numerous private sellers in the pre-owned marketplace that provides certified old vehicles with a 7-day return facility. If you don’t like it, you can return it and get a full refund.

Myth 7: Old Vehicles can be purchased in cash

Contrary to the misconception, financing an old vehicle or car have become a seamless process in the pre-owned marketplace. Gone are the days when purchasing an old vehicle or car necessitates a lump sum payment. Paying the entire amount in cash may help you save on the EMIs but this doesn’t conclude that you get more or less on the deal. The overall cost-effectiveness depends on the period of the loan and the interest rate. At SAMIL, we offer a range of flexible financing options. Our dedicated team of finance experts can guide you through the process.

Spanning from classic vintage models to contemporary classics, discover a vast and diverse collection of old vehicles at SAMIL auctions at 135+ locations across India. Whether you seek a reliable car, a fuel-efficient two-wheeler for daily commutes, or even essential equipment for your business, like construction machinery or farm equipment, SAMIL offers an extensive range, empowering you to find the perfect old vehicle that fits your needs and budget.