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Used car market on fast track in Indore

The used car market in the city is booming due to affordable prices and availability of a wide range of vehicles at the showrooms. Some car manufacturers are running used cars' showrooms.

indore Updated: Nov 28, 2014 23:26 IST
Manoj Ahuja
Manoj Ahuja
Hindustan Times
used car,car manufacturers,auto loan

The organised used car market in the city is booming, thanks to affordable prices and availability of a wide range of vehicles at authorised dealer showrooms.

Dealers say that the organised used car market in the city, which has evolved over the past few years, is growing at 20% year-on-year. Some car manufacturers, including Maruti Suzuki and Mahindra, run used car showrooms in the city.

They not only sell used vehicles but also buy them and give the consumers the benefit of exchanging their old car for another one.

"The entire process is streamlined so that customers do not have to go through the hassles of finding the right buyer for their vehicle,” an executive of Maruti ‘True Value’ showroom told HT.

“Also, when it comes to buying a used vehicle, consumers are assured that they will be getting a vehicle that has undergone a rigorous check on all the parameters including performance and safety,” said the executive who requested anonymity.

Both the parties involved have to sign a declaration of good faith that clearly mentions that the vehicles that are being sold have not been involved in any major accident. Any liability resulting due to non-discloser by the seller is borne by the seller only. The dealer also completes the entire process of transfer of names at the RTO in the new buyer’s name and charges a nominal fee.

For those who want to finance the used vehicle, the dealers have tied up with private sector banks to provide on the spot finance to the eligible people. The formalities usually take about three to four days.

A wide variety of SUVs (sports utility vehicles) including Tata Safari, Mahindra Scorpio, Ford Endeavour, Honda CRV and cars including Alto, i10 , Tata Manza, and Toyota Corolla are available at the used car showrooms in the city with price ranging from Rs 60,000 to Rs 15.50 lakh.

The only area where the buyer of a used car loses out is high interest charges on auto loan. While the banks are willing to finance new cars at an interest rate of about 11%, the used cars attract an interest rate of about 16%, which translates into higher EMIs (equated monthly installments). Also, the tenure of the loan is curtailed in case the car is more than three years old.

First Published: Nov 28, 2014 21:42 IST