The used car dealers are getting nightmares with the approaching Nano commercial launch.
Used car dealers being afraid of the market after the Nano launch have drastically reduced the rates of the pre-owned cars. Most of them are trying to reach the margin of Rs 1 Lakh to compete with the Nano.
Shockingly, prices of many mid-size cars have been slashed by over 25% and small cars by 2%. Four-to-five-year-old Ford Ikon, Maruti Esteem, Opel Corsa and Fiat Sienna are now available with a price tag of around Rs 1 Lakh.
Well the used car dealers have taken a right and smart step by lowering the prices. As it is quite obvious that when an AC mid-sized car with all necessary features is available at the same price of Nano, no customer will opt to buy a Nano base variant without AC.
It is also known that the prices of the A and B segment (small) cars will see a further revision after the launch of the Nano. So, Nano is not only a threat to the new existing small cars but also to the used cars.
So, finally the company ahs decided to launch the Nano. But I don’t think why are used car dealers frightened because of that. A small compact Nano cannot compete with premium hatchbacks in the country. those who love to have a sedan wont ever buy a Nano. Nano will definitely revolutionize the car market but wont be able to beat the leading sedans and hatchbacks in the country.
Nano is one of the most low cost model and it posts a huge challenge to the used car dealers as the price will be lower than any used car. Awaiting to see the accomplishments of this little machine.
Jimmy I think the launch of Nano will definitely affect the sales of all cars excluding the luxury and high-end luxury cars. today the market has become consumer oriented and price competitive. People are keen on getting the maximum in minimum price amount. So if Nano succeeds to win the expectations of car buyers with such a small price tag then why will car buyers go for costlier cars.
Used cars dealers have to wake up before the Nano rolls out. The amazing price tag of the car is challenging the core of car industry and everyone is trying to cut down their car prices so that the sales can be retained. I know its difficult for car manufacturers to reduce the price of new cars but I m sure that used cars will put in their heads to reduce the car prices and beat the price tag of Nano.
I do not think that Nano will affect the used car market as we think.Of course there will be variation in the market but Nano is a small car that does not feature friendly and not that spacious either.The people who wants a bigger car with at least basic features will definitely not opt for Nano.
I think the used car dealers should relax. Nano is not going to have that great impact on their sales. Firstly the ultra cheap car launch is still in the air and secondly as already said by Mr.Rohan in his comment.People who wants a bigger car with many features will always go for a sedan which which they will get at a good deal.
What a great little car. With many people in the UK suffering from the credit crunch this car could be the answer to many drivers problems. We have not yet seen this car but look forward to it at http://www.autoseek.co.uk
Tata has raised the prestige of India by showing the world the technological competance. For a realistic comparison we should look at China, there is a model from Cherry for 5200 $ which has dual air bags and features available in mid segment cars in India. So with specification of Nano a 2500$ car could have been built there. Of course creating a specification for a middle class person to migrate from 2 wheeler to 4 heeler is the real achievement and full marks to to Tatas.
I know this is really boring and you are skipping to the next comment, but I just wanted to throw you a big thanks – you cleared up some things for me!