The Lucrative Used Car Market

It needs a discerning eye to see a huge invisible and less-talked about market around the used car users all over the country

I do not know how many of you have noticed that an old car of yours which fetches you an X amount in the metropolitan city like Mumbai can get you upto 1.5 X in B or C class cities like Jabalpur and Indore.

The reason is simple to understand. A city is known by the infrastructure it has which is directly linked to its economic status of its population. It is easy to understand that a city population with high disposable incomes would change the consumer durables more often than the one lower on that economic scale.

The result being that among other things you have more cars changed and hence higher availability of used cars for sale. You don't need a car review to tell you why the cost of cars in big cities is much lower than in the smaller cities.

The class of traders which thrives on such a situation is auto dealers. They come to the big cities in hordes; pick up the junk in the name of used cars, take them back to their towns and cities, refurbish them at cheap garages and sell them at premium. Such cars cater to the aspirations of the masses which have not been exposed to a culture economically higher than theirs. Hence the aspirations they have too fall in a lower bracket. Hence here is the market for the used cars.

Cheap Indian used cars have not only attracted the small-time auto dealers, they are now being equally fancied by premium dealers and even top brand car manufacturers. Banks too have tied up with the recognised and with the high-end used car dealers to make available finance to those who would be happy to own used cars.
It needs a discerning eye to see a huge invisible and less-talked about market around the used car users all over the country.