City’s used car market losing out to online competition
The second-hand car market in the city in Sector 7 has been facing tough competition from the virtual world as several websites are allowing people to sell off their cars.chandigarh Updated: May 19, 2014 11:57 IST
The second-hand car market in the city in Sector 7 has been facing tough competition from the virtual world as several websites are allowing people to sell off their cars.
A market that once used to have a booming business, now has to check the second-hand car selling websites to decide the prices of the cars to be sold in the market. The dealers also are dependent upon these websites to set their commissions accordingly. OLX.in, Quikr.com, CarDekho.com, CarWale.com and many other such websites offer to sell second-hand cars.
People post advertisements on these websites free of cost following which they are contacted by prospective buyers who, then after negotiations, make deals without paying any extra commission.
Speaking to HT, Rupinder Bir Singh, president of second-hand car market association in Sector 7, said, “We have a steady sale of cars here in the market but a parallel virtual market in the online sphere is definitely casting a shadow on our business here in the physical market. A customer nowadays comes to us only after surfing through various websites and enquiring about the car prices online. We have to manage our prices accordingly. There is also a negative effect on the commission we charge.”
The market though has registered a hike in the sale of cars by at least 30% as compared to previous years, but the dealers infor m that consumers have changed. They infor m t hat earlier, people from all strata used to visit the market, but nowadays only those who don’t have much access to the internet, can be seen visiting the market.
Paramjit Singh, another dealer said, “Selling SUVs and other such cars are the primary sources of our profit. We also prefer to deal with them due to decent commission . The medium size cars are mostly sold online these days as both the parties-customers and sellers-get in touch with each other online and settle their deals.”