Rightly said “Every cloud has a silver lining” and we can now evidence this idiom. Take the instance of aftermaths of recession on the car industry. Surprisingly, when the credit crunch has highly impacted on the price of new cars, the price of used cars went down by whopping 30%.It’s more shocking to know that for the first time over 1000 cars are lined up in the Bangalore’s market in a span of only four months. This situation is created mainly due to the increasing job layoffs in the IT industry. IT professionals holding pink slips are no more capable of affording expensive four wheelers and are damping their cars into the used market. Even multinational companies and real estate developers are disposing luxury cars from their fleet.
This scenario has flooded the pre-owned car market with huge population of cars and as the number of car inventory in the market is increasing, used car prices are falling down.
Just imagine a used BMW 3 Series clocked just 300 km is available at Rs 25 Lakh and a used 2008 Honda City at Rs 6 Lakh. Even the three months old Maruti Suzuki Alto is tagged with a price of Rs 1 Lakh. There are people who are benefiting from the downturn and buying luxury and high-end used cars at a much affordable prices.
So, it’s the best time for those who desire to buy high-end cars at affordable prices.
Hey sounds good that BMW 3 series is available at Rs 25 Lakh. Used car prices have fallen down so much?
Today as recession has hit the market squeezing all the liquid cash available in the market, people are moving ahead to buy used cars. And some affected by the lack of cash have even sold their newly bought cars in the market. This has given good opportunity to used car buyers. But I think even the used car market is down. With people are struggling to pay off their other debts how can one thinking of buying a car unless and until they use the amount that they have spared for making the down payment of their cars.
Yes thats right rakes, the BMW is available at Rs 25 Lakh and that also not very old. I read the same advertisement in some of the newspaper as well. What days have come. People who have the money to buy a high-end BMW car have sold back its car just in three months. Thats shocking. Has the car market gone so down or is it only a superficial image of the market. I personally think it has but still not so sure.
It is pretty obvious that people will hesitate to invest on new cars.It is bit risky.In terms of used car, it will cost cheaper and also serve the purpose.