Seizing Growth Opportunities for New Car Dealers in the Used Car Market

Revolutionizing Used Car Sales: SaaS Solutions Driving Dealership Success

In the past decade, the Indian Used Car Sales Market has undergone a transformative evolution, marked by an impressive growth in the new car to used car ratio from 1:1.2 in 2016 to 1:2.2 in 2021. Industry experts predict a doubling of India's second-hand car market from 4.3 million units to an estimated 8 million units by 2027.

This growth will be empowered by the rise of SaaS-based solutions that introduce transparency and fair valuation in the used car market.

Sheerdrive's VIAR application offers a myriad of advantages to dealers engaged in or entering the used car market. These solutions not only redefine traditional practices but also elevate overall efficiency. In the fiscal year 2021-2022, an estimated 4.4 million used cars were sold in India, underlining the significant potential in the used car market.

Sheerdrive facilitates an effortless entry for new car dealers into the used car market, requiring no additional capital or training. The strategic technology enables new car dealers to capitalize on the thriving used car industry, presenting a lucrative opportunity for growth and profitability. As the market continues to evolve, the integration of SaaS solutions becomes a cornerstone for success in the dynamic landscape of used car sales in India.

Seamless Entry for New Car Dealers into Used Car Business: New car dealers face challenges when dealing with used cars received as trade-ins. Assessing the value of these vehicles traditionally involves guesswork, leaving dealers uncertain about the transaction's fairness. VIAR, a SaaS-based platform from Sheerdrive, eliminates this complexity. Leveraging AI (Artificial Intelligence) and ML (Machine Learning), VIAR ensures a transparent and accurate valuation, allowing dealers to confidently enter the used car market without requiring additional training or capital investment.

Ensuring Dealer Profitability: Accurate car valuation through a transparent platform like VIAR guarantees that dealers secure profitable deals. In the unorganized used car market, relying on visual inspection alone poses a risk for each dealer, unsure whether a purchased car can yield a profit. VIAR eliminates this uncertainty by providing a fair and clear valuation. Sheerdrive's SaaS platform complements this by streamlining the entire used car transaction process, optimizing efficiency, and freeing up dealers to prioritize customer interactions and business expansion. This ensures that each transaction contributes to the dealer's profitability.

Effortless Automated Valuation Process: VIAR streamlines the valuation process into four automated steps: Vehicle Scan, Intelligent Computation, Assured Pricing, and Remarketing tools. This ensures that evaluating and pricing a used car becomes a seamless, automated process with no need for manual intervention. Importantly, this eliminates the necessity for additional tools or extensive training for the dealer's agents on the shop floor. By automating these crucial steps, VIAR allows the dealer's team to focus on their core expertise—selling cars.

Pioneering a New Customer Segment: A significant portion of today's used car customers comprises first-time buyers, with a notable trend of individuals upgrading from two-wheelers to cars. The accessibility of financing options has played a pivotal role in this transition. To capitalize on this burgeoning market, the key lies in establishing a transparent mechanism that instills trust and confidence in the dealer. By ensuring transparency, dealers can seamlessly welcome first-time buyers into their customer list, laying the foundation for ongoing marketing and sales efforts targeted at this expanding and promising customer segment.

Streamlined Inventory Management:? The Sheerdrive platform offers powerful inventory management tools, empowering dealers to organize, track, and update their used car inventory efficiently. They also go a step further by sending timely reminders to dealers for vehicles that have been in inventory for an extended period, enabling proactive measures to optimize turnaround. This ensures dealers have accurate, real-time information about their available vehicles, contributing to more effective inventory management.

Comprehensive Multi- Brand Evaluation: The VIAR platform stands out from other Used Car Dealerships tools by offering evaluations for All brands of vehicles. This inclusive approach equips new car dealers with the ability to precisely assess and procure vehicles from various brands for resale. This flexibility ensures that dealers can confidently navigate and expand their inventory, meeting the diverse preferences of their customers in the used car market.

Listing and Marketing Excellence: Dealers onboarded by Sheerdrive gain access to its Auction platform, seamlessly integrated with the VIAR application. This empowers dealers to list their used cars for sale, leveraging high-quality visuals, detailed descriptions, and robust remarketing tools. The Auction platform fosters a unified inventory for all networked dealers, offering the flexibility to either sell cars immediately for capital or acquire vehicles tailored to their customers' needs. This comprehensive approach ensures customers stay within the dealer’s network, preventing them from seeking alternatives elsewhere.?

On-the-Go Accessibility with Mobile Application: Dealers can seamlessly access the VIAR application on their cell phones with just an internet connection. This mobile accessibility empowers dealers to evaluate, price, and manage transactions while on the move. This flexibility is particularly valuable for dealers who frequently attend auctions or operate from multiple locations, ensuring they can efficiently run their businesses ?from anywhere with ease.

Collaboration Opportunities: Sheerdrive’s SaaS solution catering to multiple brand cars facilitates collaboration between dealerships, creating a network where inventory, insights, and best practices can be shared. This collaboration can lead to strategic partnerships and increased business opportunities.

Only 17% of the used car market is accounted for by the organised sector. Even today, the majority of car purchases and sales are conducted informally. Although India has seen tremendous growth in the used car market, there is still room for future growth through the organised sector, as the ratio of new cars to used cars in mature markets like US and Europe is as high as 1:3. A rising middle class and India's young population are two key factors driving this massive growth over the next five years. This is also fueled by the fact that India's disposable income has steadily increased over the years. According to the report, factors such as technology-driven transparency, convenience and transaction simplicity will contribute to this projected growth.

With more opportunities for growth, India's used-vehicle industry is transitioning from an unorganized, setup where transactions occur via roadside garage mechanics, small brokers and between car owners - to an organized system driven by a fair and transparent AI driven Software solution like Sheerdrive.

In conclusion, the paradigm shift in used car sales in India, powered by SaaS-based solutions like Sheerdrive, is revolutionizing the industry, creating a more transparent, efficient, and customer-centric marketplace for pre-owned vehicles. This transformation is not only reshaping the way cars are bought and sold but also contributing to the overall growth and evolution of the automotive sector in the country.