The second-hand car selling space has seen a booming effect in the marketplace despite the automobile segment being seen at a slower growth over the past year. Individual hailing from lower-income groups now has access to four-wheelers from the second-hand online car spaces like Olx Cars & Cars24.
According to a recent report issued by IndianBlueBook, a used car pricing guide by Mahindra First Choice Wheels, the pre-owned car market space has grown steadily in FY’19 that crossed the 4 million unit mark, contributing to 1.2x the size of the new car market. (1)
Let’s talk about the two most widely used second-hand car selling & buying platforms in India and their scope in the year 2020.
Olx Cars or Olx Car: History
Olx Cars is a part of Olx Group, a global online used good marketplace, that was founded in 2006 by Fabrice Grinda and Alec Oxenford and is headquartered in Amsterdam. The company is owned by South African media and tech group Naspers.
It is one of the largest used goods selling platforms that functions across 94 countries and deals in electronics, fashion items, household items, furniture, and bikes, with Olx car being one of its recent addition.
The Olx Cars, as a whole platform:
- Has 350 million monthly active users
- Is available in over 42 languages
- Has over 60 million average monthly new items/goods posted
- Has over 4,000 employees
- Is one of the leading second-hand marketplace in India
Why is Olx Cars so widely popular in India?
Probably what makes Olx car so accessible in India is a mixture of a few marketing techniques used by the firm. Firstly, the used good marketplace forayed in India during the time used markets was a ‘new thing’, giving it the first-mover advantage. Secondly, it used engaging advertisements that highlighted the uniqueness of the platform, providing customers to deal directly with customers with no brokers in between to sell their goods. Additionally, Olx Cars also forayed into all the categories like electronics, apartments, cars, etc., making it the ultimate platform for selling goods.
Can Olx Cars compete with Cars24 in 2020?
Platforms like Olx Cars (2) and Cars24 (3) have been assisting in making the car selling process a bit more hassle-free & transparent for the sellers. Their structured selling process enables smoother accessibility for the car seller and the car buyer.
Where Olx cars stand as the subsidiary of the Olx second-hand products trading platform, Cars24 is an exclusive second-hand car selling space focussed towards providing better second-hand car selling & buying experience.
Note: Individuals can sell cars independently on Olx’s platform. Additionally, one can also use Olx’s CashMyCar (4) service similar to Cars24 to sell their car.
Some determine that determine the success of Olx Cars over Cars24 in 2020 are:
1. Booking an Appointment: Cars24 vs Olx Cars
You can easily schedule an appointment at the nearest Cras24 showroom by filling in the details displayed on the Cars24 website.
On the other hand, Olx car doesn’t require a person to book an appointment as everything is done online. However, Olx’s CashMyCar has the same service as Cars24.
2. Ease of Selling: Cars24 vs Olx Cars
Cars24 allows its users to cut through the chase of negotiating with multiple buyers over several weeks, by selling their cars at the nearest Cars24 branch in a single visit.
3. Selling Price: Cars24 vs Olx Car
The price at which your car is sold is determined by the team of individuals holding expertise at your nearest Cars24 branch. At Olx, the minimum selling price of your vehicle is determined by feeding in detail about your car, after which you can either raise or lower the cost for selling.
4. Money Transfer: Cars24 vs Olx Car
At Cars24, the money is transferred directly into your bank account the same day you avail the instant payment option. On the other hand, the Olx car allows individuals to get paid by the buyer in cash, via bank, etc., depending on the mutual decision. Olx’s CashMyCar offers similar money transfer services as Cars24.
5. Additional Charges: Cars24 vs Olx Cars
Olx wins the game in this one. Cars24 charges its clients a service fee between Rs 1,000 to Rs 5,000 if the seller accepts the sale of the car through their platform.
Additionally, if a seller wishes to gain access to instant payment on selling the car, an additional charge of Rs1,000 is levied by the seller. On the other hand, Olx charges nothing from its sellers.
Overall, both Olx Cars & Cars24 have their own set of pros and in the second-hand car selling industry. However, with the zero charges levied upon by Olx car, it can serve as a great competition to the second-hand car selling platform.
Cars24 has developed as an exclusive second-hand car selling platform, whereas, Olx cars serves as a subsidiary of the leading used products selling platform in India, Olx.