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Used Cars- A Boon for First Timers




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If figures alone speak for themselves than India would be considered more upwardly mobile than most Western countries. While the sale of used cars are on par with the new car market of over 600,000 annually , in the West the sale of used cars is double than new cars. Potential customers for cars have a valid reason for not purchasing second hand cars, a terminology used by Indians for vehicle used and going under the hammer .Unlike the Westerners who dispose of their vehicles faster afterwards determining they have got their money’s worth and needs to be replaced with the latest and more advanced four wheelers hitting the road, the Indians have a different psyche. Unless, the owners of cars in India squeeze the last bit of energy left in their personal mode of transport they will not part company. Thus making it difficult to find purchasers for it. Considering, the conditions of the roads in India the per kilometer wear and tear is much higher than vehicles plying in the advanced countries of the West and even some Asian countries like Japan and S. Korea. Besides, while routine maintenance of cars is mandatory by foreigners , Indians would get their cars diagnosed only afterwards the owners feel they are likely to be stranded midway on their journey or worse still the remedy comes only afterwards all coaxing and cajoling have failed.

The condition of used cars put on for sale, does not encourage many buyers. The common belief that one would not be getting his moneys worth on second –hand cars, has discouraged large scale sale and purchase of such cars. Nevertheless, the market for Indian used cars is growing steadily, although slowly. With the sudden spurt in the economy, the increased purchasing powers of the urban middle-class have encouraged two-wheeler owners to move up to owning cars. This group prefers starting with the purchase of second hand cars therefore of its affordability and it helps in understanding the nuances of four –wheelers which perhaps they may have never driven before. With the increase in brand availability of cars and periodical introduction of new models by almost all manufacturers has made availability of used cars in India grow in numbers, resulting in price competitiveness. The desire to own the latest among those who can afford to replace their models, before even the first coat of paint starts peeling off has made availability of used cars easy to come by. Therefore getting a good second hand car for a reasonable price is not difficult, if one strikes a good bargain.

It once again happened to be Maruti, which once broke the monopoly of the Birla owned Hindustan Motors in the early eighties to enter the used car market. Maruti’s True Value is a boon to first time purchasers of used cars, whose knowledge about cars is minimal and have hard time searching for qualified personnel to guide them in the purchase of used cars. The success of Maruti in the market of second hand cars in India has encouraged General Motors to emulate Maruti. General Motors is expected to enter the used car market soon.

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