Siddharth Chaturvedi, Founder and Managing Director, Boys and Machines, is a car passionate. He has been into car racing and is an avid enthusiast. Mr. Chaturvedi talks to us as to why he entered the luxury used car business and we understand from him the scope and future of this segment.
How made you consider entering the luxury used car business ?
I’ve been into supercars since a long time and that made me realise that buying and selling supercars involves a lot of depreciation. Prices drop significantly..it is also a way to extort money. The product is not depreciating but the perceived value is. The market is very unorganised and there was a need for an assured luxury used car sales point.
You started your first showroom in 2020, after the first lockdown, why?
Just after the first lockdown, there has been a shift in the thought process of the buyer. People have started splurging more, as life has no assurance. People want luxuries of life right now. This also applies for luxury products other than cars too. This sentiment has seen a a surge in demand for luxury cars.
In the last few years the used car market as a whole has grown a lot. How do you see the luxury used car market grow?
Luxury used cars have been growing but right now the demand is at the peak, because of the shortage of semi-conductor chips for new cars, making them less available. Hence, not only the demand but the prices of luxury used cars have also shot up. People are ready to shell out more and buy today rather than wait for a new car.
What is the incentive for a car buyer or seller at Boys and Machines?
The incentive for a buyer and seller is the same, actually. Prices of cars are fixed, hence the buyer and the seller both know that they shall get realistic prices at Boys and Machines. There is massive negotiations that happen in used cars and hence the prices are also jacked up most of the times. We have a fixed price across all our showrooms. The customers are also at peace, knowing this and results in saving time as well.
What is the future of this segment and what growth do you foresee?
Prices of new cars have gone up massively in the last ten years. For example, 6-7 years back, Honda City would cost around 10 lakh rupees. Now its around 16-17 lakhs for a new car buyer. But a used car buyer has an option to upgrade to say a BMW 3 series and around the same price, which is a good condition car. So there is a very good future for this segment, all it needs is more awareness and trust. That is what we provide, by educating our customers
Which cars mark the entry level for used luxury cars? Do you differentiate on the basis of price or brand?
They are mainly based on price segmentation mainly, but a mix of both. For example we do not deal in say a Toyota Fortuner, though it is a 30 lakh product. We start with the likes of a Toyota Camry, DC Avanti, Audi A4, BMW 3-series, Mercedes C-Class, Volvo S60 and so on. The most expensive car we have sold is a Rolls Royce Ghost owned by Priyanka Chopra to a client in Mumbai.
What is the cost benefit to a customer if he gets his car serviced from you , as compared to an authorised service centre? Do you provide any warranty on the cars you sell?
The customer could save about 40-45 percent by using our services for maintenance. Yes, we offer a 6 months warranty on engine and transmission. The warranty ensures that we will take back the car with full refund, if any anomalies are found.
Which cities do you plan to expand in?
As of now we have our showrooms in Gurugram, Mumbai, Kolkata and Hyderabad. In the next 4-5 months we are coming up with showrooms in Indore, Chandigarh and Ahmedabad.