Tata Nano spells doom for used car dealers in 2009

The Tata Nano is almost here, and used car dealers in India are feelling the pinch.

The second hand car market is feeling the pinch anticipating trouble as the Rs 1-lakh Nano gets ready for the roll out on 23 March 2009. According to industry sources, the proposed launch of the world’s cheapest car has adversely hit both demand and prices in India’s second-hand vehicle market.

This is bad news for the used car dealers in India, but not so for the customer. True, you won’t be able to walk into a Tata Motors dealership and pick up a Nano for at least a year from now – but you have a wide range of used cars at super cheap rates open for you in India.

Prices of used cars are seeing an unprecedented fall. According to reports, a 2007 model Maruti 800 is now priced around 1.25 lakh, where as it used to sell for Rs 1.45 lakh earlier. It is widely believed that the arrival of the Tata Nano would adversely impact smaller used car outlets. Smaller players constitute around 80 percent of the country’s second-hand vehicle sector, said sources.

How to get a brilliant used car cheaper than a Tata Nano

If you are smart, you won’t bother about the Nano. You would walk to the nearest repuited used car dealer, haggle, and walk away with a near-New condition Maruti Alto, Zen, Estilo, Santro Xing at dirt-cheap rates. You never buy a Nano, but you get reputed, reliable cars right now. How is that for getting the benefits of the Nano without buying one? Tata Nano photos

Reports from Mumbai said prices of used cars like Maruti 800, Maruti Alto and Hyundai Santro are seeing a decline by around 20 per cent. Meanwhile, things are even tough for smaller dealerships, who bank on sales of small used cars. The Nano would come for a dealer price of just Rs 1 lakh and may turn out to be an affordable car for millions of Indians. On-road price is expected to be Rs 1.35 lakhs.

Starting April, the Tata Nano would be available in Tata dealerships. It is being said that demand has plummeted for used cars ever since Tata Motors announced the Nano’s launch date. Buyers have ever since been postponing plans to buy used cars and are waiting for the arrival of the Nano, said used car dealers.

Meanwhile, Tata Motors is planning to make the launch date of the Nano an occasion to remember. The company expects to roll out as many as 1,00,000 cars in the first 12 months. It has said that the booking process and other details of car would be announced on the day of launch.

Nano will arrive in three models, namely the base model, the CX (mid-level model) and LX (top-end model). The base model would sport a price tag of Rs 1 lakh.