How India’s Used-Goods Market Is Becoming a Formal Business
If you plan to buy a second-hand car, you have two choices: a dealer your cousin has used for years, who can cut the price if you insist. The other is a company that charges more but gives you an inspection report, a warranty, and a loan offer.
Millions of Indians buy a used car every year, and most go for the first option. Although the shift has begun, CRISIL Ratings estimates that organised companies now handle about 26% of India’s used-car sales, up from 20 to 21% in fiscal 2022. It is just one sale out of four, and the rest still go through local dealers, brokers and private sellers.
The Emerging Potential in the Used-Goods Market
In the old system, the buyer used to check the product; the dealer offered trust, easy bargaining and low costs. But there was no written report on the car’s condition or a monthly payment plan. The newer companies sell those two things.
Besides, rising product prices are framing this segment as a more formal business. As per Counterpoint Research, India’s refurbished phone sales grew 13% in the first half of 2026, while new phone sales fell about 11%. When a new phone costs more, a cheaper one looks smart, and the best part is it comes with proof.
Counterpoint says Samsung’s Certified Re-Newed programme and similar schemes are bringing more structure and credibility to the category.
Crisil says first-time buyers lead demand, and a first-time buyer cannot judge an engine hence an inspection is worth paying it. Cars24 says financing has become a main growth driver, and it sells vehicle history reports and buyback plans next to the car.
The old system has not vanished completely. Counterpoint found in 2024 that independent sellers still made most refurbished phone sales. Many now offer part payment, credit and warranty. These shops can now order used phones in bulk by grade, which ties them into the wider supply chain.
A guarantee also costs money. Spinny buys cars, repairs them and sells them itself. Filings reported by Entrackr show that buying cars took 83.3 per cent of its costs in fiscal 2025. On every Rs 100 it spent, about Rs 83 went on cars. It still made a loss, though a smaller one than the year before.
Cars24’s India business reported lower revenue and a bigger loss that year. Cashify, which resells phones and laptops, cut its losses sharply and, according to media reports, has hired banks for a stock market listing planned for early 2027.
Last Verdicts
The idea of selling used-goods businesses itself is not new. In 2019, OLX and Quikr led the market, and they mostly connected buyers and sellers without handling payments. Quikr tried assured products and offline stores. Today’s leaders hold the stock, repair it and arrange loans, which adds cost and adds ways to earn.
For all the aspiring entrepreneurs, begin with buying. Pick one category in one city and write down the full cost of each item, including repairs, returns, and the days it sits unsold. Promise only what you can pay for, because every warranty is a bill you may have to settle.
Frequently Asked Questions
How to start a business in the used-goods market?
First, do market research, find your niche, and start with a small batch of products. Check the demand and people’s preferences, and update your stock accordingly. Further, set a return rule before the first sale. The overall startup cost is the price of that first batch plus cleaning, photos and packing.
Where is India’s biggest thrift market?
Google Trends figures reported in October 2026 show thrift store searches led by Bengaluru, Delhi, Mumbai, Hyderabad and Chennai, with Guwahati and Jaipur recording sudden jumps.
Is business in India’s used-goods market profitable?
Profit depends on the purchase price, cleaning and repair, photos, packaging, returns and how long an item sits unsold. For better understanding, track the full cost of every item before you trust any margin figure.
Do I need to register my business or charge GST?
Registered dealers selling used cars pay 18% GST on their profit, and electronics refurbishers must register under the e-waste rules. Those rules cover cars and electronics, so a clothing seller should ask a chartered accountant which registration and tax treatment apply.
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