Used luxury car sales jump 30% in tier 2 cities; 80% buys now digital

Used luxury car demand rose by over 30 per cent in cities like Jaipur, Coimbatore, and Kochi, showed data released by used-car platform Spinny.

 

According to Spinny's April-June quarter report, Audi Q3, BMW X1, and Mercedes GLA were the top luxury models sold. Metro-based repeat buyers continued to lead overall luxury sales, but non-metro demand showed a faster rate of growth this quarter.

 

Moreover,a significant portion of customers are now purchasing vehicles online. Spinny reported that 80 per cent of its car sales in Q2 were made through online bookings, compared to 77 per cent in Q1. However, 80 per cent of deliveries took place at Spinny hubs rather than through home drop-offs, indicating that while buyers are transacting digitally, many still prefer to inspect vehicles in person before final handover.

   

First-time buyers comprised 70 per cent of total customers, down from 74 per cent in the previous quarter. The average buyer age increased from 32 to 34 years. This points to a marginal rise in more experienced, returning customers opting for upgrades.

 

On the seller side, hatchbacks made up 55 per cent of the total inventory, led by Maruti Suzuki’s WagonR, Baleno, and Swift. SUVs accounted for 21 per cent, with higher share in Chennai. Sedans contributed 18 per cent with Chandigarh leading in this segment.

 

Maruti Suzuki and Hyundai retained the top two brand positions. Tata Motors replaced Honda in third place. Petrol vehicles accounted for 82 per cent of all sales. Automatic transmissions formed 30 per cent of Q2 purchases, marginally up from Q1. Diesel saw a higher share in Bengaluru around 28 per cent while early interest in EVs and hybrids was observed in Pune and Bengaluru.

 

Women accounted for 26 per cent of total buyers in Q2, down from 28 per cent in Q1. Chandigarh reported the highest female buyer share at over 30 per cent. Most women opted for automatic hatchbacks, and Spinny highlighted the role of financing schemes in supporting this segment.

 

Around 58 per cent of customers chose loan financing, up slightly from Q1. Coimbatore recorded the highest loan adoption at over 65 per cent. Demand for extended warranty coverage also rose, with a 30 per cent attach rate for the Assured+ program by June.

 

Cars under three years of age made up 25 per cent of all vehicles sold in June, rising from 18 per cent in April. The trend was linked to warranty-backed offerings in Spinny’s portfolio.

 

Spinny’s data also showed that Bengaluru recorded the fastest overall market growth. Chandigarh had the highest share of women buyers, while Kochi led in home deliveries, with over 40 per cent of customers opting for doorstep handovers. Jaipur had the youngest average buyer age at 31 years. Delhi NCR, Bengaluru, and Hyderabad continued to be the top markets by overall sales volume.

 

Spinny expects demand to rise further during Onam and Diwali. The company forecasts increased reliance on financing, a steady rise in digital transactions, and more activity in the EV and hybrid segments.

 

Spinny is a used car retail platform operating in 22 cities with 57 delivery hubs. It offers a mix of online and offline services, including 200-point vehicle inspections, return policies, and warranty plans.