Delhi Car Ban Leads to Rising Used Car Sales
It seems that critics of Delhi’s car ban were right—in the face of a possible car ban that would take your car off the street on certain days depending on whether it had an even or odd license plate number, it seems that people are simply getting a second, used car for the off days.
According to used car portals, the Delhi-NCR region has seen twice the average of used car sales growth, riding on the need for license plates of one number or the other. According to Nagendra Palle, CEO of Mahindra First Choice Wheels, the Delhi car market is a mature one, so any sudden rise in used car sales has to be because people are sticking with used vehicles for their second or third car.
In India, used car license plate numbers are not changed when the vehicle changes hands, and potential buyers are able to see the license plate number before purchasing it. Vinay Sanghi, CEO of Cartrade.com, told The Times of India, “We have seen a sharp increase in demand in the Delhi market because clearly people want to make sure that the number plate they get is the one they want. That’s why used cars are a better bet compared to new cars where the number is unknown and this is clearly reflected in the sales curve.”
So, as the city government ponders whether to make these partial bans permanent, the used car industry in the area continues to grow, almost doubling in the past four years.
News Source: The Times of India