The Hindu : Tamil Nadu / Chennai News : Used car market booms

Online edition of India's National Newspaper
Thursday, Jul 06, 2006

Tamil Nadu

Tamil Nadu - Chennai

Used car market booms

Swahilya

Documentation, condition of vehicle two key aspects for purchase "A used car is in no way different from a new one once it passes through rigorous scrutiny"

HOT SALES: The sale of used cars in Chennai is now on par with new cars. — Photo: S.R. Raghunathan

CHENNAI: Cars in Chennai are no longer seen as a luxury, but as a necessity. Naturally, this is leading to an increasing number of people purchasing second hand vehicles to meet their needs. And there are some who prefer a used car for the rough ride on Chennai roads. What does one watch out for when going in for a second hand car?

Sushil Mehta, Managing Director of Jains Car Shoppe, which has been in the automobile trade for the past 30 years and into the used car market for the last six years, says: "A used car is in no way different from a new one once it passes through rigorous scrutiny," he says. Two main things to be taken note of when buying used cars are documentation and the condition of the vehicle. The price is determined by the quality, condition, age and the number of kilometres the vehicle has run.

"Where you buy a used car is very important. Customers are apprehensive when they buy from small time players," he says.

There are chances of vehicles involved in accidents, with structural damage, tampered odometers or altered chassis number in the engine coming up for sale there.

It is important to buy used cars with 100 per cent guarantee on the ownership, he says.

"Someone might have purchased a car on December 31, 2000, but might try to pass it off as a 2001-model vehicle because it will fetch a higher price.

Even though there is just a day's difference, the pricing will be different. The same applies to the colour of the car. A vehicle that has been re-painted will cost less and hence sellers may not disclose this fact. Such information should be checked in the Registration Certificate (RC) of the vehicle," he notes.

Vehicle insurance is also an important component.

There is third party and comprehensive insurance. Third party insurance, which costs less will cover only damages to the person or vehicle which has been hit in an accident and not to the vehicle of the owner. The price is more for a car that has comprehensive insurance.

The chassis number of the car is a very important detail in proving the authenticity of the vehicle. The buyer has to check if the chassis number is original and matches with the R.C.

His advice: even if you buy a car from a friend, get an appraisal of the vehicle from a used car dealer and mechanic.

It can cost Rs. 250, but it is worth it, Mr. Mehta notes. "Normally this happens with friends. But even if it costs an additional Rs. 5,000 to Rs. 10,000 buying second-hand cars through proper channel with all the documents transferred it is worth it," he says.

A. Saravanan, Sales Officer, of MyTVS Quality Used Cars, Raja Annamalaipuram, which deals with used cars says that 800, Alto, Zen and Wagon R and Hyundai's Santro and Accent are the most sought after.

Available from Rs. 90,000 upward, the price will differ according to the year and mileage. While a 1999 Model Maruti 800 may cost around Rs. 1.3 lakh, a Santro of the same year will be around Rs. 1.6 lakh without power steering.

The engine and gear tests and the number of kilometres the car has run will also have an influence on the price.

Maruti has been in the market since 1980 and the 800 is the most preferred car for its low price, easy availability of spare parts, good mileage and familiarity of the machine with authorised and local service stations, he says.

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