Used cars business going slow

After a long time the car makers are going to celebrate one of their best Diwali

. But in the market of pre-owned cars, the lack of celebration can be seen clearly. Usually, the sales are on a high during the period between Navratri and Diwali. One of the car dealers commented that the present year is not as thrilling as the earlier one. The reaction from the side of customers is too poor. In comparison of the earlier festival period, the footfalls have declined by around twenty percent after Navratri. Even worse is that the sales in the last two-three months have almost halved in comparison of the past year. Ankit Kumar of Om Cars commented that there are few selected customers who visit the showroom. The present period is possibly the worst festival season for the business, said Ankit. On the other side, it is being expected that in this fiscal, the passenger car segment will grow by 23%, as per the analysis by the SIAM (Society of Indian Automobile Manufacturers' Association). Then the obvious question is why are sales not picking up. The marketmen say that one reason can be the lack of easy credit. The dealer further added that they are observing a big cash crunch presently in the market. Usually, the banks are not too keen on providing loans to the vehicles which are second-hand. Also, the rate of interest is around three to four percent higher in comparison of the rate of interest on the new vehicle's loans. This confines the customers from spending in the second-hand vehicles, he added. Manager at the Honda dealership opined that customers kind of feel hesitant and that's why they remain distant from taking loans for the used cars because the rate of interest is about 14.5-15%. Sources reveal that the new car market is progressing with the growth of 30% month on month. The pre-used cars segment is unable to catch with this growth. Even the banks have got interesting and attractive schemes to attract the customers. The competition has also increased a lot and specifically after the presence of systematic players like Tata Motors Assured, First Choice (Mahindra and Mahindra), Hyundai Advantage and True Value (Maruti) into the used car business, this competition is constantly increasing.

Used cars business going slow

By: Cardekho2010

POST COMMENT

Ultimate Tips Dealing With Deals & Delicious Food During Your Excellent Delta Vacations Researching That Windy City Vacation? Take Advantage Of This Information On How To Score Land Chicag Filtering Engines Come to The Aid of Those Overwhelmed In The Information Age Wanting To Take That Detroit Trip? Take Advantage Of These Instructions On How To Grab Nab Motor Cit Ride Away With A Motorcycle Fuel Filter And Yamaha Speedometer Comprehensive Guidelines Dealing With Treats Along With Pleasant Vacation On Amazing Flagstaff Hotel Techniques On How To Take Low Priced But Required Materials In Improving Garage Insulation For Sprin Get Sonic Drivers For Your System Now Topmost Guidelines To Enjoy At Cozumel Island Vacation Trips For Saving Capital And Keeping The Best Motorcycle Parts: How To Find What You Are Looking For Get The Right Vehicles With The Right Chauffeurs To Get Your Show On The Road The Best in Car Park Management Services in the United Kingdom Researching That Affordable Excursion? Learn About These Hints On Ways To Get Grab Vacation Discount