Sub-Rs.5 lakh cars buoy second-hand sales

December 26, 2014 11:45 pm | Updated 11:45 pm IST - CHENNAI:

There was high demand for cars in Rs.1-2 lakh price bracket in the used-car market in Chennai

There was high demand for cars in Rs.1-2 lakh price bracket in the used-car market in Chennai

The sub-Rs.5 lakh hatchbacks are the most preferred ones in the used car market across eight top cities in the country, according to a survey by Gaadi.com , an online platform for used-car buying and selling as also for new car information.

Bengaluru has the highest average ask price for used cars at Rs.5 lakh, while Pune has the lowest average offer price of Rs.3.25 lakh.

Some cities have higher demand for hatchbacks priced under Rs.3 lakh. pointed out the survey.

Also, Rs.5 lakh plus SUVs (sport utility vehicles) experience robust demand with models such as Toyota Fortuner and Renault Duster. Cars of Maruti and Hyundai continue to see strong demand in the used-car segment due to affordable prices and lower maintenance costs.

High demand

Elaborating on consumer behaviours in major cities, Umang Kumar, Chief Executive Officer, Gaadi.com told The Hindu that there was high demand for cars in Rs.1-2 lakh price bracket in the used-car market in Chennai though supply was very limited in the category.

The average asking price for a car was Rs.4.31 lakh, while the average offer price for used cars was Rs.3.67 lakh in the city. “Sedans in general are not preferred by used car buyers in the city. Interestingly, Maruti 800 sells like hot cakes in Chennai,” he added.

But overall, models of Hyundai, Fiat, Renault and BMW have high demand in Chennai’s used-car market though supply is lower than demand.

Buyers in Bengaluru preferred sedans more than any others and sub-Rs.3 lakh sedans were in high demand. In Hyderabad, people preferred used cars priced below Rs.3 lakh and models of Maruti, Hyundai and Toyota were the most sought after ones. Hyderabad also reported a good demand for luxury model Audi Q3.

Major category

About 80 per cent of used-car demand in Mumbai was in sub-Rs.5 lakh segment. BMW 3 series dominated the luxury used car market of this city, while Maruti Dzire was high in demand across categories of used-car customers.

In Delhi, Toyota Fortuner, BMW X5, Maruti Alto 800, Honda Amaze and Toyota Corolla Altis were the most preferred ones, while Fortuner was the hot favourite of used car customers in this city.

Kolkata had surprisingly high demand for Tata Nano when compared with other metros. Customers of this city were the most price-sensitive among all metro used-car buyers. In Pune, 90 per cent of the used-car demand was in sub-Rs.5 lakh, of which 30 per cent is for cars priced in the range of Rs.1-2 lakh.

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