| As those in the middle income group aspire to have | | | | at a much lower price than certified cars. |
| their own cars, the demand for used cars rises. So, | | | | The Rs. 1 Lakh Tata Nano created a lot of noise in the |
| we now have so many OEMs in India entering the | | | | Indian car market early this year as the cheapest car |
| used car market. The segment has now got an | | | | in the world. A used Tata Nano car can be expected |
| organized outlook. Luxury car makers too are budging | | | | by next year at a rock-bottom price. What more can |
| into the pre-owned auto market while existing players | | | | one want? This is surely going to further catalyze the |
| are expanding their network of outlets. | | | | growth of the second hand car market in India. |
| The used car segment is witnessing growth owing to | | | | Maruti Suzuki with its Maruti Truevalue, Honda Siel |
| factors like increasing numbers of OEMs entering | | | | Cars India Ltd. with its Honda Auto Terrace, Ford with |
| pre-owned automobile industry, favourable | | | | Ford Assured, Toyota Kirloskar Motors with Toyota U |
| demographics, the changing lifestyle of Indians and user | | | | Trust, Hyundai Motor India Ltd. with Hyundai Advantage |
| choice. Also, car loans can more easily be availed on | | | | and Mahindra and Mahindra's with its First Choice have |
| used cars and online portals too play an important role | | | | all already entered the organized used car market. |
| by educating users on the feasibility of buying used | | | | India may witness the opening of nearly 270 outlets by |
| automobiles. However, the main challenges that the | | | | 2012. Porsche and Bentley are among leading |
| used car market in India faces are the boom of | | | | international brands that are expected to enter used |
| cheaper new cars, the restricted choice and the extra | | | | car market in India. |
| costs that pre-owned auto buyers bear in addition to | | | | As per one of the leading consumer portals, they |
| the annoyance of checking various documents. | | | | receive around 25,000 second-hand or used car |
| We already know that nearly 85 per cent of the used | | | | queries in a month. Research says that 40 per cent of |
| car market is unorganized. The car agents play a very | | | | these people actually buy the cars. In Bangalore, Delhi, |
| significant role in connecting sellers and buyers. | | | | Haryana, Jaipur and other major Indian cities, around 65 |
| Purchasing a used car through an agent intensifies the | | | | per cent of buyers go for pre-owned cars. Must say, |
| risk for the buyer. That's because these brokers | | | | the online portals are doing a great job helping people |
| usually swap the genuine OEM parts with sub | | | | decide what car to buy. These portals drive second |
| standard, cheaper parts to increase profit margin. This | | | | hand car sales in most Indian cities. |
| in turn enables these agents to sell off their used car | | | | |