WIDE RANGE: Used Cars for sale at `Car Bazar' in Jubilee Hills. Photo: Satish H.

Hyderabad: The choice never looked more tempting. Every brand in every segment - call it second-hand wheels or pre-used cars as they are fashionably called now.

If one thought a brand new car meant a sense of accomplishment, looking for a used car, one or two years old, seems to make better economic sense now. "You can straightaway upgrade at the cost of a new smaller car," says Kiran, a retailer.

Substantial depreciation

With owners changing brands as fast as mobile phones these days and with no dearth of those looking to upgrade from small to mid-size segment to luxury, the used car market is thriving, says E. Srinivas of Om Cars.

There is a 25-30 per cent depreciation in invoice value of a one-year-old car. If the showroom price of a new a/c Maruti is Rs. 2.5 lakhs, a car just as good as a one-year-old one comes for Rs. 2 lakhs. Add accessories with a used car to the price advantage - music system, wheel caps, mats, seat covers et al, says V. Subba Reddy of Siddhartha Car Bazaar.

Though the rate of interest on used cars is higher at 15 to 17 per cent, compared with 6 to 8 per cent for new cars, it still makes sense as it straightaway cuts 30 per cent off the top. Used car owners have the option of selling two years later at more or less the same price, says Mr. Bharat who bought a Ford Ikon. Private financiers process loans faster too, he adds.

It is no longer small cars like Maruti Zen, Alto or Hyundai Santro that are preferred but also mid-segment and luxury sedans. "People come to us for even Skoda and Mercedes `C' class to fulfil their aspirations of owning luxury cars and also save a few lakhs. But most buyers frequent us for Ford Ikon, Honda citi, Hyundai Accent," says Srinivas, who sells 15 mid-sized cars a month and operates from Jubilee Hills.

Hot choices

While those working in the IT sector frequently re-locate and hence sell their four-wheelers, businessmen too constantly look to upgrade to latest versions. Leading company showrooms too encourage used car sales but charge Rs. 20,000 to Rs. 25,000 more than us, says Subba Reddy who has been in the used car segment since 2000 and sells 20 to 25 cars.

Interestingly, even SUVs like Qualis, Scorpio too are hot choices in the used car segment with the noveau riche preferring them, thanks to the real estate boom.

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