The market of second hand cars is buzzing at the moment. At present, there are many such apps in the market, which are offering to sell the car at a good deal. One of the major reasons for the rapid growth of the second hand car market is the increase in the prices of new vehicles.
The market of second hand cars is buzzing at the moment.
The market of second hand cars is buzzing at the moment. At present, there are many such apps in the market, which are offering to sell the car at a good deal. One of the major reasons for the rapid growth of the second hand car market is the increase in the prices of new vehicles. This is the reason why most car buyers are turning to second hand vehicles. But with the growth of the second hand car market, fraud related to its purchase is also increasing. And concerned about this, the government has issued a draft notification, in which some guidelines and new rules have been set for the market of old vehicles.
The government says that in the existing ecosystem, problems like transfer of vehicles to a new person, disputes related to responsibilities related to third party damages are coming to the fore.
Fast growing second hand car market
How fast is the second hand car market growing? You can understand this with a statistic. During the financial year ended March, about 31 lakh new cars were sold across the country. Whereas, about 44 lakh second hand vehicles have been sold during this period. And the industry believes that the trend of more demand for second hand vehicles will go ahead.
By the financial year 2026, 80 lakh second hand vehicles are estimated to be sold in the country. And during that time the sale of new cars is expected to reach 43 lakhs. That is, after 5 years, the number of new vehicles sold in the country will be almost twice the sale of old cars. The country’s second hand car market is estimated to be around $23 billion during the financial year 2021-22. And it is estimated that during the next 5 years it will grow by 19.5 percent every year.
What will happen in the new rules?
Now back to the draft notification of the government. With the new guidelines of the government, now the dealers of registered vehicles will have to take authorization certificate from the registering authority. This certificate will be valid for 5 years. Intermediaries such as online companies will now have to inform the authorities about every registered vehicle to be reselled.
Apart from this, the responsibility of giving information and following the rules will also be on the old owner of the vehicle. The new rules may help in recognition of dealers or intermediaries of registered vehicles as well as prevent fraud in the purchase or sale of used vehicles. The government has said that stakeholders i.e. vehicle sellers and buyers can give comments and feedback on the draft notification within 30 days.