How to buy a used car for cheap
Auto repair is booming in India.
With the country’s car market expected to hit a new record of 6.1 lakh units by 2020, demand is expected to soar even more.
With the country facing a looming crisis over the lack of quality of roads and other infrastructure, car manufacturers are hoping for a boost in sales.
This, in turn, could boost the price of new vehicles, pushing the industry to new heights.
A recent survey by the National Auto Dealers Association (NADHA) found that an average Indian car buyer is willing to pay up to Rs 50,000 for a used one.
In comparison, a brand new car would cost Rs 6,000, the report said.
But with prices going up and the availability of cheap new vehicles on the rise, the auto industry is looking to its future.
A new survey by automotive consultants Bajaj found that a large chunk of the new car buyers in the country are buying used cars, which has raised concerns over the future of the industry.
“We have to look at the future,” said Rajiv Kala, the managing director of a company that provides services to auto dealerships.
“If we see an opportunity to sell new cars, we will.”
Rajiv Karna, managing director at auto dealer chain NIAK, said the industry needs to focus on making cars that are not just used but also “modern, fuel-efficient, well-built”.
“There is a growing need to have modern, efficient cars,” he said.
“The auto industry should focus on that and not just buy new cars.”‘
You don’t want to miss out’There are plenty of reasons why consumers are looking for used cars in India, but it has also contributed to the surge in auto prices.
According to the NDHA survey, a large portion of consumers said they are looking to buy vehicles to save on maintenance costs.
While they are reluctant to go out and buy a new car, many feel they will miss out on a better deal if they opt to buy an older model, said Mr Kala.
He said it was also the first time that he has seen a large number of customers go to auto shops and buy an old vehicle.
The NDHA’s report said nearly 60 per cent of respondents said they would prefer a brand-new vehicle.
This suggests that the use of brand-name models is becoming more popular, said Bajai.
“It’s good for the industry because there are more used cars coming on the market.
That means more people will be willing to buy used cars,” said Baidu’s Rahul Kulkarni, adding that the new models offered by brands like Tata Motors, Ford and Mercedes-Benz will have an edge over the older models.
In a country where most cars are still made in India’s rural areas, many believe that it is better to buy one that has been driven and maintained by a person who is knowledgeable about the car.
However, with the rising cost of petrol, a lot of people are reluctant in purchasing a used vehicle, said Amit Kumar, the head of marketing at the automotive consulting firm, Auto Alliance India.
“Most people are afraid of buying a used SUV,” he added.
While a recent survey found that the auto sector in India was expected to reach a new high of 6 lakh units in 2020, it is expected that this figure will rise to 7.2 lakh by 2020.
While India is not alone in its auto industry’s rise in popularity, its growth has also seen a spike in the number of people opting for used autos.
“The popularity of used cars is going up, too,” said Nadeem Kumar, a marketing expert.
“There are many people who have bought used cars before, but this time they are willing to take on the challenge of owning them.
People have the desire to own an SUV and they are now thinking of buying used ones.”