| A used car can be much cheaper than its new | | | | warranties, OEM parts, insurance and taxes and this is |
| counterpart. The depreciation is lesser and car | | | | exactly where auto makers have endeavored to bring |
| financing too can be obtained easily. A survey was | | | | in a system of checks and balances. The second |
| conducted and it was revealed that the demand for | | | | hand market in India today has certified used car |
| the used car market in India per year is 1.4 million cars. | | | | outlets screened by car makers. For the automobile |
| Isn't that surprising? | | | | seller, the certified used car outlet gives the best |
| Unfortunately, only 10 per cent of the Indian used car | | | | market price, thorough evaluation by experts, and an |
| market is organized. The remaining 90 per cent | | | | option to choose any other automobile from the |
| remains unorganized. Out of this unorganized segment, | | | | manufacturer range. For buyers, such outlets offer a |
| 30 per cent belongs to the automobile vendors and | | | | lot more. They get a warranty on the used automobile, |
| the remaining 60 per cent transactions are usually | | | | insurance, repairs that use OEM parts and thorough |
| carried out directly by the used car buyer and | | | | checkups by trained technicians. |
| customer. Most of the time, the two parties know | | | | Some of the well known certified used car dealers in |
| each other. Such transactions happen in large numbers | | | | the Indian market are Maruti TrueValue, Honda Auto |
| but within the law limits of India. | | | | Terrace, Ford Assured, Toyota U Trust, Hyundai |
| Car buyers, however, need to be aware that such | | | | Advantage, Mahindra and Mahindra's First Choice. |
| transactions can be risky. In a country like India used | | | | Many more are yet to come to India. The branded |
| automobile buyers get cheated very often. The pricing, | | | | used car chains are slowly realizing the potential of the |
| maintenance claims and clear ownership records can | | | | used car market. |
| all be made up. Mechanics who test the used car and | | | | Industry experts expect 50 per cent of the used cars |
| middlemen who carry out the deal can manipulate a | | | | sales to be brought under organized car market over |
| decision. First timers who have no clear idea of the | | | | a period of 3 years. Used car outlets will probably |
| condition of used cars usually available in the used car | | | | spread into II tier cities by 2012. Car makers have |
| market are fooled very easily. The good-for-nothing | | | | realized that the used car market can generate very |
| old automobile fetches a good price. | | | | high revenues. Top car players say that their used car |
| Second hand car dealers, very often, use fake parts | | | | ventures are paying handsome dividends. Hence the |
| to offer an attractive price. The used car dealers get | | | | companies are now making it mandatory for their |
| 5-10 per cent commission by settling the deal through | | | | dealers to run used car outlets too. |
| low-quality parts. The new old automobile is therefore | | | | The branded used car outlets have now started |
| prone to repairs every now and then. However, this is | | | | buying and selling off second hand cars from multiple |
| not always true. The second-hand Indian market also | | | | brands. By offering a one-stop shop for all customer |
| consists of sellers who sell off their well-maintained | | | | queries, the outlets can win over customer loyalty. |
| cars in order to upgrade to bigger cars. | | | | They provide assistance in not just buying and selling, |
| A pre-owned automobile may not come with | | | | but in financing, insurance and many other services too. |