Dealers say the prices of the used cars have fallen over 20% since the announcement of Nano dates.
The Nano, expected to sport an on-road price of Rs 1.25-1.3 lakh (Rs 125,000-130,000) for the no-frills, base version, will compete with the compact cars of Hyundai Motors, Maruti Suzuki, Tata Motors and General Motors. Its high-end version, complete with air-conditioning, central locking, power windows and power steering, will cost approximately Rs 1.7 lakh (Rs 170,000).
Nano has pulled down prices of several models. For instance, a 2006-make Hyundai Santro is currently being offered at Rs 230,000 as against its regular price of Rs 260,000. Similarly, Maruti Suzuki's Zen Estilo is Rs 40,000 cheaper at Rs 260,000 as against the usual price of Rs 300,000. (via)
After all people would prefer to by a new Nano for Rs 1.2 lakhs to 1.5 lakhs rather than buying a used Maruti 800 at the same rate.So is the Used car Industry vanished?
May be no because there are always buyers , but the profit margines of the dealers are certanly to decline. Many would not prefer to buy a used car they would rather buy a NANO at the same cost or a cost much lesser than that.
Over to you.
What do you think about it?