Demand for used vehicles soars

A major problem faced by residents o the fast expanding city of Rajkot is the lack of an efficient mass transit system. Owning a vehicle has become a necessity. This has also fuelled the demand for second hand vehicles.

Sales-purchase consultations and display of second-hand two-wheelers and cars are organised regularly in Rajkot city, especially specially near the 80ft road and 150 ft ring road. Buyers have the option to choose the vehicle in line with their taste and the limitations of their budget. One can also pick the RTO registration number of their choice.

The average annual turnover of this second hand vehicles sales is expected to be Rs 1.5 crore and more than 150 organising brokers of Rajkot are engaged in this second hand vehicle sales business.

For the sales of vehicles, the seller displays his vehicle with the sales organisers with his intended lowest sale price. Once the vehicle is sold, the organizer collects Rs 200 as brokerage from both the seller and the buyer.

If the vehicle kept for sale is not sold, the owner takes it back. He does not have to pay anything to the organisers.

"The craze for buying new vehicles leads many to sell their vehicles. Some of the vehicles on offer are sparsely used. So, a lucky buyer may get a vehicle in first-hand condition at second-hand prices," says Manshukhbhai, a leading broker for such vehicles.

Bipinbhai Katira, an organiser-cum broker of cars in Rajkot, says, besides second-hand cars from Rajkot, cars from Ahmedabad, Vadodra, Surat etc. are sold here.

The market is very active on Sundays. "On an average, 10 cars are sold here. This may soar to 50 on Sundays," he says.

"People now have interest in buying second hand vehicles because they are available at nearly half the cost of a new one. There is also no shortage of choice available", he added.

More than two lakh vehicles ply in Rajkot city alone. Given the population of the city, it means there is a vehicle for every five people.

Says Gokulbhai, a dealer in second hand two wheeler: "The buyer comes for the purchase of used vehicle, selects his model, takes a test ride and if the price is pocket-friendly, rides away with his vehicle."