Second-hand car seller plans Mysore foray

Though a new model is lauched every other day, the market for pre-owned or second-hand car is expanding with more and more people from the middle class wanting to upgrade their cars or be first-time car buyers.

In Mysore, where a large chunk of the population is middle class who own a two-wheeler, these families are looking for a pre-owned car that costs around the same as a new two-wheeler.

More than a status symbol, they now look for comfort and convenience, for in a car the entire family can move around, instead of just two on a two-wheeler. Besides, the availability of easy car finance is another factor for them to look for a pre-owned car.

To take advantage of the segment, the Bangalore-based Silver Star Motors is setting its eyes on the Mysore market as a one-stop shop.

"We are planning to open a couple of our branches in some important district headquarters in Karnataka where the market for pre-used cars are growing and Mysore is our immediate priority. This will be followed by one at Hubli-Dharwad," Silverstar Managing Director Vivekananda Hallur told Business Standard.

Having two showrooms in Bangalore, in its very first year of operations in 2003 it sold over 300 cars. Now Silverstar proposes to make Bangalore its main base for catering to the used car market in these cities as more used cars come into the Bangalore market with car owners opting for better models.

According to an estimate, 3,000-4,000 cars change hands in Bangalore. Last year, Silver Star sold over 600 cars ranging from Maruti 800 to high-end cars like Mercedes, Benz and Skoda and seen a 20 per cent growth.

"More jobs, more disposable income, easy finance facility and availability of good cars at reasonable prices are the factors leading Bangalore to become a preferred place for used cars. It is estimated that every month 3,000-4,000 used cars change hands in Bangalore alone," Vivek says highlighting the pre-used car market growth.