Used cars get a festive push

Sale of new cars sees a dip this year.

Published: October 24, 2012 1:46:26 am

Sale of new cars sees a dip this year

With both new and pre-owned car segments witnessing a hike in sales,Dussehra has seen a boom in the automobile market in the city,especially in the pre-owned segment of diesel cars and high-end cars.

However,there has been a decrease in sale of new cars this year as compared to last year’s figures on the Ashtami and Navami days,said an RTO official.

“A total of 500 new cars and 2,700 two-wheelers were registered in the last two days. Last year,700 cars were registered on the same days. Hence,the sale of new cars has gone down. A total of Rs 7.35 lakh was collected in the last two days as vehicle tax,” said Sanjay Dhaygude,Deputy RTO.

Baljeet Singh,who owns a car bazaar that deals in second hand cars,said the increase in sales was mostly restricted to diesel cars. “In the last one-and-a-half months,we hardly sold 5-6 cars. But now there is almost a 100 per cent increase in the sales since Navratri.”

“Many people are accepting the offers to exchange their petrol cars with a diesel version. With this trend,the current ratio of diesel and petrol cars is 90:10 in our shop,” he said adding that they were hoping to see a sale of at least 8-10 cars on Dussehra.

High-end cars such as Mercedes Benz,Scorpio and Pajero,too,have seen a good business this Navratri. Surendra Sharma,a senior manager at one such dealership,said,“There has been a 50 per cent increase in the demand for high-end cars this festive season and this will continue till Diwali. The prices start from Rs 25 lakh for a Mercedes C class,” he added.

“Unlike earlier,now big farmers have started taking interest in Mercedes and it has become a status statement among them,” Sharma said.

“The second hand car market story could have been rosier,if banks were more lenient,” said Vinod Sonawani,owner of a second-hand car dealership on Nagar Road. “Banks give out a lot of loans for new cars. Even the manufactures have a lot of schemes when it comes to new cars. But for old cars,getting loans from banks is a really tough job,” said Sonawani.

“Last year,we sold 19 cars in two days. This time,we could sell only three. Big farmers and business class are ruling the market with both opting for SUVs and other higher end vehicles. The service class is not buying as they used to. All our hopes are now on Dussehra day,” he said.

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