80% cars bought on loan are re-sold in 6 years- Study

Ahmedbad

     A multi city study about car buying and selling trends which also included two major cities of Gujarat, its commercial capital Ahmedabad and the diamond city Surat, has revealed many interesting facts and claimed that in India 80% of the car buying is done through loans and these vehicles come back in the re-sale market within 5 to 6 years.

    The study during the month of September
released here today also concluded that the old cars normally get good resale value till they are 6 years old, beyond that the value drop becomes larger as the years go by.

   The car brands that dominate the used car segment in India are Maruti, Hyundai, Honda and Chevrolet, the study by BigGaddi.com, a popular used vehicle portal said.

   Honda cars lose their value the fastest whereas Hyundai and Maruti are the slowest. So no wonder, inspite of the new entrants most people continue to remain faithful to the old horses like Maruti and Hyundai, the study observed.

   According to Ms. Jainee Gordhandas, CEO , BigGaddi.com , ‘ A huge portion of the used car market transactions is now being dominated by online players. The approximate market share is currently around 30% and is expected to grow at a steady pace in the coming months.’

    The Mumbai market is showing a keen interest in used luxury cars such as Audi, BMW and Mercedes while Surat also shows a similar trend of higher interest in luxury cars. Apart from the usual Audi, Mercedes and BMW , here some other upper segment cars like Superb are also in good demand in the diamond city, it mentioned.

    The Study shows that the Amdavadis whose first choice for used cars were diesel variants are now loosing interest in it. In almost all the major cities the decrease in the gap between the petrol and diesel prices has resulted in a lower demand for diesel cars. The survey in Ahmedabad showed that the demand for diesel Swift, Swift Dzire and Tata Indica was huge, but now the same is declining. People here do not wish to pay the additional cost for a diesel car. Also the fact that the cost of maintaining a diesel car is higher than a petrol car, plays an important factor for choosing petrol cars for money ‘mindful’ Amdavadis.