Kwid enters used car market

French car maker Renault launched Kwid with a SUV look in September last year and took the small car segment by storm

Venkatesh, a Hyderabad resident, wanted to sell his 10-month-old Renault Kwid as he needed urgent money. He managed to do that in five days of posting an online ad at Olx. The buyer shelled out Rs 3.7 lakh for the Kwid, which is still enjoying a waiting period of about two months. Venkatesh had paid Rs 4.35 lakh for the car in September last year when it was launched. The amount included registration and insurance cost. So, this 10-month-old Kwid was sold at a markdown of 15 per cent to the price of a new car.

"There was no issue with the car. I needed money and so had to sell it. I paid Rs 1,000 to Olx for a premium ad. There were a number of enquiries. I had quoted Rs 3.78 lakh and sold it for Rs 3.7 lakh," he said. His ad was viewed about 20,000 times in five days.

There are many more transactions that have already happened for Kwid in the used car market. Shakti Tyagi, a resident of New Delhi's Mayur Vihar, said he was facing parking problems after he bought his second car, Kwid, in February this year and decided to sell it. He managed to get Rs 3.2 lakh for his five-month-old car, 16 per cent lower than his cost of purchase.

A number of other transactions have happened at a discount of 15-20 per cent. Most popular cars are sold at a cut of 15-20 per cent in the used car market if the first owner sells it within a few months of purchase. The resale price is considered to be one of the key determinants of the success of a car. There are about a hundred used Kwid listed for sale on Olx and CarTrade from across the country. Other platforms such as Quickr and CarDekho also have 30-40 Kwids listed for sale.

"Kwid is a successful new car and, therefore, the response in the used car market will also be good. As of now, the supply of Kwid in the used car market is low since it is a new product," said Vinay Sanghi, founder and chief executive at CarTrade, a leading marketplace for used cars. French car maker Renault launched the Kwid with a sports utility vehicle look in September last year and took the small car segment by storm. Launched at an aggressive price of Rs 2.56 lakh, Kwid has managed to get 125,000 bookings. About 70,000 vehicles have been delivered and it has emerged as a competition to the most popular entry-level car, Maruti Suzuki's Alto, thanks to pricing and looks.

But, not everyone is lucky to find a buyer quickly for a second-hand Kwid. A New Delhi-based used car dealer said he was waiting to find a buyer for three weeks. Another Delhi resident said he decided to sell the Kwid as he did not find the 800cc engine vehicle powerful enough to suit his requirements.