German luxury car maker BMW hopes rising aspiration levels and growing automotive interest among Indian consumers will help its newly launched pre-owned car business garner a 10 per cent share of sales by next year.
Under the ‘BMW Premium Selection' brand, completely refurbished used cars up to five years old are available for significantly lower prices – a used 3-series sedan costs Rs 16 lakh (against Rs 24 lakh for new).
High demand
“Over the last month we had trials. The demand now surpasses the availability – over 400 units have already been sold in the initial phase and we hope to sell 1,000 units next year,” Dr Andreas Schaaf, President, BMW India, said.
Available through seven dealerships across the country, the “meticulously maintained” pre-owned cars would have clocked less than 1.20 lakh km. They will be covered by a 24 month/200,000 km company warranty, while owners can also opt for BMW's 24X7 Roadside Assistance. The range of used vehicles on sale will also be available for evaluation through the company's Web site.
Financing
The company also expects its financial services arm to give a boost to its used car sales – it is offering 13 per cent interest rate on used vehicles, lower than most banks. BMW also plans to start its leasing business by the first week of December.
Main rival Mercedes-Benz India had launched its own used car arm in June last year and has since sold over 1,000 units. Audi is expected to follow suit soon.