Buying a used car in India has long been a negotiation-driven journey. In the traditional dealership model, the quoted price is often not the true selling price but only a starting point of a long and complex negotiation process. Local dealers, motivated to maximise their own profit and commission margins, almost always inflate the initial price based on subjective market analysis or simply what the competitor is quoting. As a result, buyers with no real access to real market data are left to negotiate their way to a deal that does not even reflect the true value of the used car they love.
However, with online used car platforms transforming the pre owned car market into a place where trust meets transparency, negotiation hassles are now being replaced by a data-driven pricing model where the fixed price takes the centre stage. Leading this transition is Cars24, which has adopted an AI-Powered fixed pricing model that effectively addresses the biggest pain point of the modern buyer: the fear of overpaying.
The Pain of Price Negotiation
While striking a good deal through negotiation might sound like a fun idea, the entire process is rather taxing and highly inefficient, especially for buyers. Pricing in the unorganised used car market is highly unstructured, with local dealers quoting different prices to different buyers, simply based on subjective market assessments, profit margins, commission percentage and sometimes even the buyer’s profile. This not only breeds mistrust but also creates a situation where buyers always end up overpaying.
Non-transparent pricing in the unorganised used car market is therefore one of the biggest entry barriers for potential buyers who end up spending a substantial amount of their time and energy in cracking a good deal, which in reality is often more than what the car is worth. The result is a transaction that feels less like a purchase and more like a gamble, regardless of the final price paid.
Cars24’s AI-Powered Pricing: Fixed, Transparent and Honest Pricing
To address the flaws of the negotiation-based model, leading online used car platform Cars24 has adopted a technology-backed solution through its AI-powered pricing engine. This customer-first approach moves the industry away from human intuition towards data-based precision.
How the AI-Powered Pricing Engine Works
The pricing model utilised by the platform is not based on a static price list. Rather, it is based on a dynamic engine that evaluates a granular list of variables, including:
- Lakhs of historical transactions
- Real-time market demand and supply
- Make, model, variant, and age
- Odometer reading and usage patterns
- Insights from the platform’s detailed 300-point inspection
This approach goes a step beyond standardised pricing, taking into consideration specific aspects that are unique to every used car to ensure that the final price tag reflects the fair market value of the vehicle and nothing more.
By removing bargaining from the used car buying equation, the platform’s AI-powered pricing engine is a noteworthy step that is driving the market’s transformation. By creating a fixed-price environment that is backed by data, the platform ensures:
- There is no hidden markup
- There is no preferential pricing
- There is no pressure to negotiate
The Three-Fold Advantage for Buyers
With Cars24 driving the shift towards fixed pricing used car purchase has now moved from being a high-stress negotiation journey into a seamless and memorable experience.
- Elimination of Decision Fatigue: With fixed, transparent pricing, buyers can instantly compare cars based on their budget without wondering if the price is flexible. When the price seen is the final cost, buyers can accurate plan their purchase, leading to a regret-free purchase experience.
- Speed and Efficiency: Without the back-and-forth of endless negotiations, the overall transaction time from selection to purchase is drastically reduced.
- Trust through Data: When a price is generated by an algorithm analysing millions of data points, it carries an objective weight that a local dealer’s word lacks. Buyers gain the assurance that the price is reflective of the broader market, not the seller’s commission needs.
Conclusion
By removing bargaining and adopting fixed, AI-driven pricing, Cars24 has not just simplified the transaction; it has transformed the entire buying journey. Instead of the loudest negotiator winning, data now determines value. Buyers enjoy transparency, fairness, and peace of mind, making used-car ownership more accessible and stress-free than ever.
