What is pre-owned market? Second hand market!

I was reading this interesting news about how Hero Motors is planning to increase the chain of its second hand vehicles. It  said the second hand market remains strong despite demonetisation. Infact, the first hand slowed but not the second hand.

Towards the end of the article, one realised a new kind of market is being mentioned:

It said even macro-economic setbacks, such as demonetization, didn’t seem to have much impact on the second-hand bike market.

“Interestingly in 2017 when new two wheelers industry faced challenges like demonetization and transition from BS-III to BS-IV which lead to a stunted single digit growth, there was a significant boost in demand for pre-owned two wheelers.”

“Our experience shows that pre-owned industry is evolving at a very fast pace and the replacement cycle for two-wheeler has come down to 4-5 years,” said Yadvinder Singh Guleria, Senior Vice President – Sales & Marketing.

“We see good future potential in pre-owned two-wheeler business and has advanced its expansion horizon to 200 Best Deal Outlets by the end of this fiscal itself.”

Pre-owned? Haha. That is a nice way to call a second hand market which has this low status attached to it. Call it pre-owned instead.  What all jargons we all keep coming out with…

Jargons aside, what is behind rise of this seconds market?

It said a decision to speed up the opening of such shops was taken after seeing strong demand for pre-owned motorcycles in India.

“In financial year 2016-17 (ended March), sales of Honda’s pre-owned business grew by 23% which is three times that of the ‘new two-wheeler’ industry growth of only 7%,” the company said.

Honda’s Best Deal are the first such retail set-up by any two-wheeler manufacturer in India solely for the purpose of dealing in pre-owned vehicles.

The chain today comprises 150 outlets in 117 cities across 21 states of India.

The shops serve two sets of customers: Those who want to exchange their existing two-wheeler of any make for a brand new Honda two-wheeler, and those customers who want to buy a refurbished and certified pre-owned Honda two-wheeler and seek the Best Deal in the market. All brands of bikes are exchanged at the shops.

The two-wheeler maker gives two free services and six months of warranty and after-sales support on pre-owned bikes purchased from its stores. They also help the customers change the ownership in the records at RT office.

I am told the second mobile market is pretty active as well. People prefer to buy these as it costs less and ine can keep changing models just to show-off to the society as well.

But does this apply to bikes? Not strictly. Most likely, the seconds motorcycle market just enables those people who may not have money for first hand but can buy a second hand one. It is a step towards mobility..

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