During this time of inflation and high interest rate, car sales is declining. In a step to boost car sales, Maruti Suzuki rides on new cars and drives back the old.
Maruti Suzuki comes up with an exchange offer to push luxury car sales. The company is turning their heads towards 15-20 years old cars that are either not working or are in a very bad condition, cars that don’t serve the purpose to their owners. With such an effort Maruti is luring customers to exchange their old useless cars of any model or make for new Maruti cars.
The exchange of old for new is the latest marketing strategy by Maruti with a firm belief that the offer will push car sales. In order to reap more benefits, the company has also tied up with scrap dealers across India who will help the company to dispose of old cars and give a discount offer of about Rs 40,000 to customers. Apart from selling new for old, the company is also inviting bids for old cars from scrap dealers in various cities.
Sometimes it is really difficult to understand the actual motive behind the offers produced by various companies. Most of the car manufacturers give such kind of exchange offers. These manufacturers revamp the old cars and sell it in the market. But will 15-20 years old cars give the actual return even after revamping and refurbishing?
Labels: Maruti-Suzuki, old-cars, Used-car- Market
3 Comments:
That's right. It is really difficult to know what the company is gaining in return of the offer it is giving. What will they do with the 15-20 years old car models?
I think it is simply a way to lure customers. These companies have experts and skilled technicians who can actually bring life to a dead car. They will definitely refurbish the old cars using the same body. They may put in good engines and extra accessories to raise the resale value. This will benefit their pre owed business. They are only giving an exchange offer of Rs 40,000 on old cars. This amount actually becomes the purchase amount for the company. Maruti spends Rs 40,000 to buy the car body, it will spend another Rs 50,000 or 80,000 to paint, repair and refurbish the car. The total cost of the car for the company will be nearly about Rs 1 lakh which will be sold out in the used car market with a better profit margin. So, finally a gain for the company!
GREAT OFFER..from MARUTI. I do own a Premier Padmini was planning to sell it off. I think this can be a good chance for an exchange of my old car. Also Maruti cars rock in Indian roads. so i think may be i can go for the Wagon R its truly a family car and have also heard that it offers good mileage. so this is a good news for me.
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