NEW DELHI, AUG 28: The recent upswing in the sale of passenger cars is yet to have a positive impact on the used-car market. However, the prices of cars in the Zen-like segment have already begun to look up. But more than that, trends like the entry of authorised dealers in the business of second-hand cars is sure to improve the scenario as more and more people will be willing to go to these dealers rather than falling prey to the tricks of brokers and mechanics.Moreover, with Maruti Udyog launching its site that also acts as a medium for sale and purchase of used cars, the second-hand car market in India has finally made its debut on the Internet.The second-hand prices of Maruti 800 and mid-luxury cars are more-or-less stagnant. Most activity is happening in the Zen-like segment, and the resale prices of these cars are looking up. According to Rakesh Nanda, proprietor, Fairdeal Motors in Ashok Vihar, with the coming in of Hyundai Santro in the used car market, the prices of second-hand Maruti Zen havecrashed. ``People are bored with the Zen,'' says Nanda adding that earlier, many people have had to replace their Zen with a Zen since they had no other choice.Nanda says that the resale market for Santro is quite good and a 1999-model Santro sells for at least Rs 2.8 lakh (the ex-showroom price of the basic version is Rs 3.05 lakh), whereas a second-hand Zen manufactured in 1999 would sell for Rs 2.75 lakh.``Daewoo Matiz has flopped in the market,'' he adds. Since few people are buying the car, fewer still are selling it. ``Because of its low resale prices, sellers often refrain from selling their Matiz,'' Nanda says. In the mid-luxury segment, the entry of more players has eaten into the resale prices of existing ones. And in this segment, Honda City has the best resale value and a 1998 basic model can be bought for Rs 6.5 lakh, while a new one costs Rs 7.5 lakh.Maruti Udyog Limited launched its site - marutiudyog.com - last month. The site also acts as a medium to buy and sell cars. And itsvery convenient. For instance, to sell a Maruti car, the person surfing the site has to fill up a form, giving details of his/her car, e-mail and postal address, expected price etc. To buy a car, simply look at the list of all cars available in your city on the site and contact the person who is selling the car via e-mail or on the telephone. This method is simple, quick and free of cost.There are over 200 entries on the MUL site. However, in order to delete an entry, one has to get in touch with the host or Rediff On The Net.Recently, MUL announced a joint venture - Maruti Service Masters. The other partners of this JV are Sumitomo Corporation of Japan and Maruti Countrywide. The JV has big plans to enter the second-hand car market. According to Pankaj Narula, chief executive officer, Maruti Service Masters, ``MUL plans to come out with a list of approximate resale prices of its cars sometime soon.'' At present, only Kotak Mahindra Primus is bringing out a list of resale prices of cars in the market.Kotak Mahindra charges a higher interest rate of 21 per cent for financing used cars. The trend of authorised dealers/workshops getting into the business of second-hand cars is not new.
