CARS24 has brought greater organisation to India’s used-car market. Instead of finding buyers through local dealers or classified advertisements, car owners can request an online valuation, schedule an inspection and sell their vehicles through the CARS24 platform. Buyers can compare inspected used cars, arrange financing, take test drives and receive support with ownership transfer.
CARS24 is no longer only a car-buying and auction company. It follows a full-stack automobile ownership model covering vehicle buying, retail sales, dealer auctions, loans, insurance, inspections, warranties and ownership-related services.
The company mainly makes money by purchasing used vehicles and selling them at a higher price. It also earns from dealer transactions, vehicle financing, insurance distribution, warranties and services provided throughout the ownership journey.
CARS24 Company Quick Overview
| Particular | Details |
| Brand name | CARS24 |
| Founded | 2015 |
| Founders | Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal |
| Headquarters | Gurugram, Haryana |
| Founder and Global CEO | Vikram Chopra |
| Industry | Automotive technology and used-car retail |
| Core business model | Full-stack used-car retail and ownership platform |
| Main services | Buying, selling, financing, insurance, inspections and warranties |
| Main operating markets | India, the UAE and Australia |
| Monthly active users | More than 38 million |
| Active dealer network | More than 21,000 dealers |
| Retail showrooms | More than 50 |
| FY2026 adjusted net revenue | Approximately ₹1,411 crore |
| FY2026 adjusted EBITDA loss | Approximately ₹357 crore |
CARS24 says its platforms reach more than 38 million monthly active users and participate in a significant share of India’s used-car transactions through retail, marketplace and dealer channels. Its technology platform is currently used across India, the UAE and Australia.
What Is the CARS24 Business Model?
CARS24 follows a hybrid full-stack business model.
Under its direct retail model, the company purchases cars from individual sellers, inspects and refurbishes them, and then sells them to retail customers. CARS24 takes ownership of these vehicles and carries the financial risk until they are sold.
Under its marketplace model, verified individual sellers can list vehicles for buyers without CARS24 necessarily purchasing every car. The company also operates an auction network through which used vehicles are offered to professional dealers.
Its wider platform supports vehicle loans, insurance, warranties, registration-certificate transfers, inspections and other services. This allows CARS24 to earn from several stages of one vehicle’s life rather than depending only on the original sale.
How Does CARS24 Make Money?
1. Margin on Used-Car Retail Sales
Retail sales are a major source of CARS24’s income. The company purchases selected cars directly from owners and adds them to its owned inventory.
Each vehicle is inspected, valued and, when required, refurbished before being offered to another customer. CARS24 earns the difference between the final selling price and the combined cost of purchasing, transporting, repairing and preparing the vehicle.
For example, if CARS24 purchases a car for ₹5 lakh and sells it for ₹5.7 lakh, the ₹70,000 difference is not pure profit. Inspection, refurbishment, warranty, showroom, employee and transportation costs must first be deducted.
The owned-stock model gives CARS24 greater control over vehicle quality, pricing and customer experience. However, it also exposes the company to inventory risk when a car takes too long to sell or its market value falls.
2. Dealer Auction and Wholesale Revenue
Not every car purchased or inspected by CARS24 is sold directly to an individual buyer. Some vehicles are offered to professional dealers through the company’s auction network.
Dealers compete to purchase available cars. CARS24 may earn through the margin on vehicles it owns, transaction charges, auction-related fees or other commercial arrangements.
The dealer network is particularly useful for vehicles that may not fit the company’s retail inventory requirements. It creates additional demand and helps CARS24 sell vehicles more quickly.
The company’s official investor presentation reported more than 21,000 transacting dealers and a presence across more than 200 cities.
3. Marketplace and Seller-Service Fees
CARS24 also allows verified sellers to connect with potential buyers through its marketplace.
In these transactions, the company may not purchase and hold the car. Instead, it provides inspections, digital listings, pricing assistance, enquiries and transaction support.
CARS24 can earn service or facilitation income from the buyer, seller or another participating party, depending on the arrangement. An asset-light marketplace sale carries less inventory risk than purchasing the car directly.
The hybrid model allows CARS24 to provide a larger vehicle selection while reserving its own capital for cars that it wants to retail directly.
4. Interest and Fees from Vehicle Loans
Financing is one of CARS24’s most important growth businesses. Many customers cannot purchase a car entirely with cash and require a used-car loan.
The group provides financing through CARS24 Financial Services and partnerships with other lenders. It may earn interest on loans recorded in its own lending book, along with processing, servicing or sourcing fees.
When a partner bank or finance company provides the loan, CARS24 may receive a commission or platform fee instead of keeping the complete interest payment.
Around 60% of cars sold through the CARS24 platform included financing in the company’s H1 FY2026 investor presentation. The company also said loan disbursements grew strongly during FY2026.
5. Insurance Distribution
Customers purchasing a used car generally need valid motor insurance. CARS24 allows buyers and existing vehicle owners to compare, purchase or renew eligible insurance policies.
The policy is issued by a licensed insurance company, which bears the financial risk of claims. CARS24 may receive a permitted distribution commission, referral fee or technology payment.
Insurance renewals are valuable because they allow the company to maintain a relationship with the customer after the vehicle has been purchased.
CARS24 can also combine insurance with financing, warranties and buyback products to create a broader ownership package.
6. Warranty and Maintenance Products
Used-car buyers often worry about unexpected repair expenses. CARS24 offers warranty and protection products covering eligible mechanical problems.
Selected owned-stock cars include initial repair protection and extended warranty coverage. The company also offers optional longer-term warranty and maintenance arrangements under specified conditions.
CARS24 earns from the value of warranty plans included in the vehicle price or purchased separately. It must use part of this income to pay for eligible future repairs and claims.
The company also benefits indirectly because warranties increase customer confidence and can make its used cars easier to sell.
7. Vehicle Inspections and History Reports
CARS24 carries out detailed inspections covering mechanical condition, bodywork, documents, accident records and other vehicle information.
Inspections are used internally before the company purchases or lists a vehicle. CARS24 can also provide inspection and vehicle-history products to customers and commercial partners.
A paid inspection or report produces service income without requiring the company to purchase the car. These services can be offered to buyers who want independent information before completing a private transaction.
The inspection data also improves the company’s pricing and lending decisions. CARS24 says it conducts checks across hundreds of vehicle parameters.
8. Registration and Ownership Services
Buying or selling a used car involves registration-certificate transfer, insurance updates, traffic-fine checks and other documentation.
CARS24 assists with RC transfers and provides ownership services through products such as challan payments, FASTag support, insurance renewals and vehicle records.
Some basic tools may be available free to attract users, while eligible transactions and value-added services can generate fees or commissions.
These services keep customers connected to CARS24 throughout the ownership period. A person using the platform to check fines or renew insurance may eventually return to sell the vehicle.
9. International Used-Car Operations
CARS24 also operates in the UAE and Australia. It applies its inspection, pricing, financing and retail technology to these markets.
The company earns from vehicle sales and associated services in much the same way as it does in India. However, product structures and financial arrangements may differ according to local regulations.
Using one common technology platform across several countries can reduce the cost of international expansion because the company does not need to build every system again.
Gross Vehicle Sales Are Not the Same as Net Revenue
A large part of the money collected from selling a used car represents the vehicle’s original purchase cost. It does not become profit.
CARS24 reports several measures, including gross merchandise value, gross revenue and adjusted net revenue. These figures should not be treated as identical.
Its Indian operations reported approximately ₹6,233 crore in gross revenue for FY2025, with vehicle auctions and retail sales forming about 92% of the total. For FY2026, the wider company reported approximately ₹1,411 crore in adjusted net revenue, a measure that focuses more closely on the income retained after certain vehicle-related costs. The two numbers are calculated differently and cannot be directly compared.
Major Costs in the CARS24 Business Model
Purchasing cars is the company’s largest expense. Vehicle procurement represented approximately 81% of CARS24 India’s total expenditure in FY2025.
Other major costs include:
- Vehicle inspections and refurbishment
- Transportation and parking
- Showrooms and fulfilment centres
- Employee salaries
- Technology and artificial intelligence
- Advertising and customer acquisition
- Interest and credit-loss provisions
- Warranty repairs and returns
- Documentation and RC transfers
Holding inventory also ties up capital. The company must sell cars quickly enough to prevent depreciation and storage costs from reducing its margin.
Latest Financial Performance
CARS24 reported adjusted net revenue of approximately ₹1,411 crore in FY2025–26, representing annual growth of around 27%.
Its adjusted EBITDA loss narrowed by approximately 36%, from ₹555 crore to ₹357 crore. The company said it achieved its first company-level EBITDA-positive month in January 2026 and its first profitable quarter at the company level during Q4 FY2026.
These are management-reported adjusted figures rather than complete audited statutory revenue and net-profit numbers.
Why the CARS24 Business Model Can Work
The used-car market has traditionally been fragmented and difficult for customers to trust. CARS24 reduces uncertainty through inspections, fixed processes, documentation support and warranties.
Its full-stack model creates several opportunities to earn from one customer. A buyer may purchase a car, take a loan, obtain insurance and buy warranty protection through the same platform.
The company also collects pricing and vehicle-condition data from thousands of inspections and transactions. Better data can improve purchase prices, retail prices, loan decisions and inventory management.
Challenges Facing CARS24
Used cars are not standard products. Two vehicles of the same model and year can have very different mechanical conditions, service histories and values.
Incorrect pricing can quickly reduce margins. Paying too much for a vehicle or holding it for too long can lead to a loss.
CARS24 also faces competition from Spinny, CarDekho, Cars.com-style marketplaces, local dealers and direct buyer-to-seller transactions.
Financing introduces credit risk, while warranties create future repair obligations. The company must control these risks while continuing to improve overall profitability.
Conclusion
CARS24 makes most of its money by purchasing used cars and reselling them at a higher price. Dealer auctions, marketplace services and international vehicle sales provide additional transaction income.
Vehicle financing, insurance, inspections, warranties and ownership services allow the company to earn beyond the original car sale. Its full-stack model can produce stronger revenue from each customer, but it also requires careful control of inventory, refurbishment, loan and warranty risks.
FAQs
Q: Does CARS24 own every car shown on its platform?
A: No. Some vehicles are part of CARS24’s owned inventory, while others may be listed directly by verified sellers through its marketplace.
Q: Does CARS24 charge a commission when someone sells a car?
A: The commercial arrangement can vary. The quoted amount, inspection terms and applicable services should be reviewed before accepting the offer. CARS24 may earn through resale margins, transaction fees or related services.
Q: Who decides the final value of a used car?
A: CARS24 uses market data, inspection results, model, age, mileage, demand and vehicle condition to calculate an offer. The initial online estimate may change after physical inspection.
Q: Does CARS24 provide every car loan from its own funds?
A: No. Some loans are provided through CARS24 Financial Services, while others involve partner banks or finance companies.
Q: Can a buyer return a car purchased from CARS24?
A: Eligible owned-stock vehicles may come with a return period, subject to kilometre limits, vehicle condition and other terms. Buyers should check the specific policy before completing the purchase.
