Autocar India, in association with Spinny, has conducted the fourth edition of our Used Car Study which analyses real-world resale values across a broad spectrum of vehicles sold in the Indian market in order to assess depreciation trends over a five-year ownership period. The study is based on more than 11,000 vehicle transactions across nine cities, highlighting the growth of the used car segment, rising financing trends and emerging EV resale challenges.
As per the report, India’s used car market is estimated to be 1.39 times that of the new car segment, and sees annual growth of 11-13 percent. Within this, the organised segment is growing even more rapidly at more than 20 percent annually.
- Maruti, Hyundai, Kia, Mahindra models retain strong resale value per the study
- Nearly 60 percent of transactions on organised platforms are financed
- Up to 41 percent depreciation observed in 5-year-old vehicles
Commenting on the report, Hormazd Sorabjee, Editor, Autocar India, said, “The used-car market today offers one of the clearest windows into how mobility preferences are evolving in India. What makes this report particularly valuable is the breadth of consumer and transaction-led insights it brings together – from ownership trends and financing behaviour to changing vehicle preferences and value retention.”
Autocar-Spinny Used Car Survey 2026: emerging trends
As per the report, 80-82 percent of used car buyers are first time buyers, which isn’t surprising given the decline of the entry-segment in new car sales due to ever rising prices. SUVs continue to be the most preferred body style even among used car buyers, with customers also increasingly opting for larger cars and better-equipped variants for the budget of a new entry-level car.
Another interesting trend observed was that financing has emerged as huge growth driver in this segment, accounting for nearly 60 percent of all transactions on organised platforms such as Spinny. The report highlights that in the last five years, the penetration of financing in the used car segment has doubled from 16 percent to 32 percent. Easier access to financing is helping expand the addressable market while also enabling consumers to purchase higher-value vehicles.
Autocar-Spinny Used Car Survey 2026: average depreciation observed
As per the analysis, one-year-old vehicle depreciates by an average of 21 percent, while depreciation reaches 33 percent after three years and 41 percent after five years. A five-year-old vehicle retains about 60 percent of its original value.
The average selling price of a three-year-old vehicle in the study stood at Rs 8.38 lakh, roughly comparable to the average price of a new car in India in 2020. This reflects how used vehicles are increasingly enabling consumers to access more premium segments without bearing the steepest years of depreciation.
Autocar-Spinny Used Car Survey 2026: most preferred used brands, models
The study also found that brands such as Maruti Suzuki, Hyundai, Kia and Mahindra have strong value retention across categories. As for individual model, the likes of the Maruti S-Presso, Hyundai Grand i10 Nios, Maruti Baleno, Maruti Dzire, Hyundai Verna, Tata Punch, Hyundai Venue, Kia Seltos, Mahindra XUV700 and Maruti Ertiga are among the strongest in retaining value over time.
However, EV resale faces some significant challenges. Unlike ICE vehicles, EVs currently lack predictable resale benchmarks due to concerns around battery health. Improving transparency around battery performance, battery health assessment and residual value benchmarks will help support the next phase of EV adoption, per the report.