Bhubaneswar, Jan. 10: The aspiration to own a four-wheeler often runs into budget hurdle, but the rise in the sale of used cars shows that many have learnt to drive around pocket constraints.
The second-hand car market is witnessing a boom and monthly sales figures of leading automobile companies dealing in used vehicles here corroborate the trend.
The demand for second-hand vehicles was negligible even five years ago, but the middle-class dream to own four-wheelers is reflected in the spurt of automobile shops across the city.
A car dealer said that the city was selling more used cars now than they sold a year ago. He said that a year ago the number of used cars sold here every month was not more than 1,000. However, the sales figures have gone up manifold. Now, the city sells 5,000 used car every month.
Market experts said that the penchant to buy new cars in place of old ones had also added to the growth.
“Five year ago, only five per cent of vehicle owners used to sell off their cars to buy new models. But nowadays, 35 per cent of them are switching over to trendy and costly models leading to a growth in the sale of used cars,” said Pravin Lath, chief operating officer of Sky Automobiles, an authorised centre of Maruti automobiles.
Maruti sells around 500 used cars every month in the city, he said.
The demand for second-hand cars has encouraged dealers to organise a carnival of used vehicles. At the ongoing fair at Khandagiri, buyers have not let down automobile companies that have set up shop there.
“We have sold around 25 second-hand vehicles in the past four days. Depending on the model, we are selling cars that ranges from Rs 35,000 to Rs 5 lakh. We are also bearing the cost for ownership change. Besides, banks have come forward to finance those who are coming to buy used cars,” said Sujit Kumar Mallick, sales executive of Maruti True Value, Sky Automobiles.
Though the sale of old cars has grown, there is no change in the number of new cars sold in the city. A source in the regional transport office said that a year ago the number of new cars registered every month was 6,000 and there has been no addition to the figure this year.
The unorganised sector that involves sale of vehicles through online classified platforms has also increased over the years. Automobile experts said that even a few years ago, brokers used to play a pivotal role in sale of used cars, however, nowadays customers are buying them from authorised showrooms. The city has at present 20 used car outlets.
The value of such second-hand cars depend on several factors, including distance covered, age and fuel economy. Besides, the number of times the vehicles has been sold previously also has a significant impact on the price.
Automobile experts said that cheaper models are easy to sell than high-end cars. “While a car worth Rs 4 lakh is being sold at Rs 2.2 to Rs 2.4 lakh depending on its condition, it is difficult to sell the high-end models, which is priced between Rs 5 to Rs 6 lakh or more as generally our target customers are from middle class families. Hatchback models are still ruling the market,” said an employee with a showroom dealing with used cars.
However, buyers should keep a few things in mind while opting for a used car (see chart). “One should ensure that the vehicle is not involved in any crime. Besides, they should verify the authenticity of the agency selling the vehicle as in the recent past we have seen such agencies vanishing after collecting huge amount of money on the pretext of providing used cars,” said a senior police official.
Regional transport officer, Bhubaneswar II, S.K. Behera, said that they had been receiving several applications for ownership transfer of cars.
“The buyers should also verify whether the used car has a proper fitness certificate along with vehicle pollution certificate,” said Behera.
