Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Log in to CarWale

Please enter your password
Forgot password?
Please enter your registered email

Sign up to CarWale

Please enter your name
+91
Please enter your mobile number
Please enter your password
Please enter your password
Ad

Demonetisation: Buying cars no more a priority

November 16, 2016, 12:48 PM IST by Abhishek Nigam
Demonetisation: Buying cars no more a priority

Demonetisation though expected to do good for the future seems to have caused major havoc for the present. People struggling for authorized cash, kilometer long queues outside ATM’s and banks all day long. And even when people do manage to get the cash, they think twice before spending it on expensive things which is understandable considering the struggle they had to go through to get it. 

Cars are another of those expensive items which at a time like this are bound to be on least priority. And this will be even more so when it comes to used cars where people will prefer to wait to put their used cars for sale in the market since the used car market is primarily driven by cash.

Manufacturers also claim that sales of new cars could drop by as much as 50 per cent till the cash situation is brought under control. Speaking to used car dealers, the situation is pretty grim. According to them enquiries have gone down by almost 80 per cent with almost everyone thinking about withdrawing money with no one thinking about buying a car. And even if they do, it’s with the old cash which is useless for the dealer.

Putting forth a figure, almost four million used cars are sold in the country every year, which is more than the number of new cars sold.  Even for new cars, the down payments are mostly made in cash which brings us back to the main problem again. Luxury car manufacturers are dissuading people from making purchases with cash since it gets difficult for them to handle the cash as well. Maruti Suzuki however has said that the effect of Demonetisation would be negligible as almost 75 per cent of the sales are through loans for both new and used Maruti cars.

Tags:Car sales,Demonetisation
Show CommentsHide Comments
Ad
  • Upcoming Cars

Kia SPKia SP

July 2019

14L - ₹ 20L
Tata HarrierTata Harrier

December 2018

16L - ₹ 22L
Mahindra Y400Mahindra Y400

19 November 2018

35L - ₹ 40L
Maruti Suzuki New ErtigaMaruti Suzuki New Ertiga

21 November 2018

7.80L - ₹ 12.40L
Ford Figo FaceliftFord Figo Facelift

November 2018

6L - ₹ 9L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free

Select your city to avail offers

Currently available only in