| Used cars are selling like hotcakes in India. Thanks to | | | | exchange within three years of their purchase, |
| their easy availability and lower interest rates, the | | | | compared to the aged ideology of sticking to the |
| sale of used cars is only expected to further shoot | | | | same car for 10-15 years. |
| up the sales ladder in the coming years. It is hard to | | | | As many as 50 new and tweaked models have been |
| find accurate data on the sale of used car in India, | | | | introduced in India for the past couple of years. This |
| where the unorganized sector plays a major role. | | | | trend is expected to continue and grow till the car |
| However, if we go through the car dealers and the | | | | makers’ pump in Rs 35,000 Crore in Asia’s |
| country’s largest vehicle financier list, more | | | | third largest automobile market. To think India had |
| second-hand cars were bought and sold in 2007 than | | | | barely two marquees three decades ago – the |
| new ones. According to estimates provided by Maruti | | | | Fiat Premier and Hindustan Motors Ambassador. The |
| Suzuki India Ltd. TrueValue used car division and | | | | 25-30 percent growth in the previously owned car |
| Honda Siel Car India Ltd. Auto Terrace, which sells | | | | market in the last three years has happened because |
| pre-owned cars, the used car market this fiscal year | | | | interest rates for used and new vehicles are more or |
| is about 10 percent more than that of new cars. | | | | less the same. |
| Car financers elsewhere have also pointed out this | | | | Organised players like Maruti’s TrueValue and |
| growing trend. They estimate that the used car | | | | Automartindia Ltd have entered this business and |
| segment is growing at 25-30 percent compared to | | | | contributing to the trend. They offer buyers and |
| the 13 percent for the new car market. In 2007, | | | | sellers the assurance of proper ownership and |
| which ended in March, Indians bought 1.4 million new | | | | accident documentation along with quality and |
| cars, compared to about 1.3 million used ones in the | | | | add-ons such as warranty and free services |
| same period. Since March, Maruti sold 65,000 used | | | | previously available only for new car buyers. The |
| cars, an increase of 45 percent compare to last year, | | | | general consensus among the industry is that the |
| while Honda sold 2,769 used cars in this period | | | | used car segment may become almost double of the |
| compared with 1,765 cars a year ago. | | | | new car market in another five years as |
| About 80 percent of the transactions in the | | | | two-wheeler owners has been opting for |
| second-hand car segment still occurred in the | | | | four-wheelers. |
| unorganized sector, facilitated by an estimated 2,000. | | | | In markets such as the US and France, the used car |
| With advances in technology and a record number of | | | | segment is 2.5 times larger than the new car one. |
| new car models entering the Indian market every | | | | India may outshoot this record in the years to come. |
| year, customers today typically go for an upgrade or | | | | After all, we do have the second largest population! |