A survey of 50 used-car dealers across 15 Indian cities found that 90% do not use customer relationship management (CRM) software or dealership software to store leads and enquiries. Instead, dealers rely on phone contacts, spreadsheets, physical registers and WhatsApp chats to manage prospective buyers.
The Spyne India Used-Car Dealer Survey 2026 also found that 76% of respondents either manage enquiries manually across different channels or report that some leads are missed. Meanwhile, 78% said buyers’ primary concerns relate to vehicle condition, including hidden damage and the accuracy of online listings.
India’s used-car market is valued at around $53 billion and is projected to reach $68–78 billion by FY31, according to an industry report cited by Spyne. The market is expected to record 9–10 million retail transactions annually by then, with nearly 80% of transactions continuing through unorganised channels.
Used-Car Dealers Rely on Manual Lead Management
The survey found that 54% of dealers save customer leads as contacts on their phones, while 40% use Excel or Google Sheets. Another 32% maintain physical diaries or registers, and 28% store enquiries in WhatsApp chats.
Although 62% of respondents market their inventory across multiple channels, managing enquiries from these sources remains a challenge. Around 48% handle each channel manually and separately, while 28% said they struggle to keep up with enquiries, resulting in some leads being missed. Only 8% use a CRM or another tool to consolidate enquiries from different channels.
The broader use of dealership software is also limited. According to the survey, 46% of respondents do not use any business software and continue to rely on phones, WhatsApp, spreadsheets or paper records. Among dealers who use software, photography and listing tools are more common than systems for lead management and customer follow-ups.
Vehicle Condition Remains a Key Buyer Concern
The survey found that 78% of dealers identified vehicle condition as a major source of buyer uncertainty. More specifically, 40% said hidden damage or unreported repairs were the most common concern before buyers trusted a used-car listing, while 38% said customers questioned whether the vehicle’s condition had been described accurately. Price was the primary concern for 16%.
When asked how they compete with organised used-car platforms such as Spinny, CARS24 and CarDekho, 76% of dealers cited trust and honest disclosure, including information about service history and vehicle condition. Personal relationships and local reputation were identified by 70%, while 46% cited price and 36% pointed to add-on services. Respondents could select more than one factor.
The findings indicate that how a vehicle is represented online can influence buyer confidence before a physical inspection. Dealers may advertise through marketplaces, Instagram and WhatsApp, but discrepancies between the listing and the vehicle’s actual condition can create doubts during the purchase process.
Dealers Report Mixed Responses to AI-Generated Vehicle Images
The survey also examined dealers’ views on AI-generated vehicle photography. Half of the respondents said they would consider using the technology, while 8% said they already use it. Another 24% expressed doubts about the quality of the output, and 18% were unaware that such tools were available.
The results also point to concerns about how highly polished photographs affect buyer confidence. Around 48% of dealers said professional-looking vehicle images could make buyers suspect that information was being concealed. Another 22% said buyers’ reactions depended on the vehicle’s price, while 20% believed polished photographs clearly build trust.
Accuracy and reliability were the most frequently cited considerations when evaluating AI tools, selected by 48% of respondents. Ease of use was the priority for 32%, while 10% prioritised cost and another 10% considered whether other dealers were already using the technology.
Dealers also indicated that AI-generated assessments would require verification in some cases. If an AI tool flagged damage that a dealer believed was not present, 40% said they would seek a second opinion from an AI system or a human, while 24% would inspect the vehicle again themselves. Together, 64% said they would verify the result before acting on it.
Survey Covers 50 Dealers Across 15 Cities
Spyne’s India Used-Car Dealer Survey 2026 is based on responses from 50 dealers across 15 cities, including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, Ahmedabad, Jaipur, Lucknow, Chandigarh, Kochi, Indore, Coimbatore, Nagpur, Surat and Patna.
The respondents included independent single-outlet dealers, family-run showrooms, independent multi-outlet dealers, home-based or online-only dealers, and broker-cum-dealers. The company said the findings are indicative of trends among independent used-car dealers and are not statistically representative of the national dealer population.