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Demand for used vehicles slows down
After witnessing a spurt in the demand for used two-wheelers following the first lockdown, the dealers of second-hand vehicles say the demand has come down due to lack of availability of finance.
Due to the unavailability of public transportation like buses and trains, people were finding difficulty in commuting to their office. “There was a huge demand for pre-owned vehicles immediately after the first lockdown. Many office-goers who depended on the MTC buses and the suburban or metro trains for their daily commute wanted to purchase used bikes or scooters. But the demand has come down subsequently,” said K Saravanan, a dealer at Kolathur.
Rakesh Kumar, another dealer at Chepauk, said most of the visitors to his shop wanted bikes or scooters at low prices ranging from Rs 10,000 to Rs 15,000. “We will get a supply of the used two-wheelers at low prices only when people buy two-wheelers selling their old vehicles in exchanges. With not many new vehicles being sold, there is a shortage of availability of used vehicles at lower prices. Moreover, banks and private financial companies have increased the down payment for the purchase of new two-wheelers to 20 to 30 per cent,” he said.
K Akash Kumar, who works in a private company at Guindy Industrial Estate said he used to travel from his home at Tambaram to office on EMU trains. “In the absence of public transport and social distancing norms, I have decided to buy a used bike,” he said.