New Delhi: Companies involved in the sale of second-hand cars saw a rise in queries from customers during the first three days of the fuel ban on overage vehicles, with customers from other parts of the country inquiring about getting cars from Delhi at throwaway prices.
The ‘no fuel’ to end-of-life vehicles came into place on July 1. However, within three days, the Delhi government urged the Centre’s air quality panel to immediately suspend the directive and said it will make “all-out efforts” to resolve issues related to restrictions on the movement of end-of-life vehicles on city roads.
Delhi Environment Minister Manjinder Singh Sirsa, in a letter to Commission for Air Quality Management (CAQM) chairman Rajesh Verma, said the fuel ban is not feasible and cannot be implemented due to technological challenges.
However, between July 1 to July 3, when there was uncertainty, companies handled multiple queries from customers looking to dispose of their vehicles.
“We observed a 25 per cent increase in leads related to such vehicles based on a three-day comparison around the ban period,” said Hanish Yadav, senior vice president and business head, Spinny.
Echoing similar views, Amit Malhotra, proprietor of United Cars India in CR Park, said during that time, they received 10 times more queries regarding second-hand cars, especially from South India.
“We get three to four queries on a daily basis. But in the lead-up to the ban, we were receiving nearly 50 calls on a daily basis. A majority of the callers were from south India, who thought they would be able to buy vehicles at cheaper prices,” he added.
Last week, Chamber of Trade and Industry (CTI) said prices of second-hand cars in the national capital have witnessed a sharp fall in recent days, with traders reporting a decline of 40 to 50 per cent.
CTI chairman Brijesh Goyal said the market for overage vehicles in Delhi has been severely affected, with nearly 60 lakh vehicles impacted by the sudden downturn.
Goyal, who is also an automobile businessman, claimed that traders are being forced to sell cars at significantly lower prices.
“In the last five days, the prices of second-hand cars have dropped by 40 to 50 per cent. Businessmen in Delhi are now compelled to sell vehicles at one-fourth of their original price,” he had said.
Explaining the rules, Vikram Chopra, founder & CEO, CARS24, said if a diesel vehicle is over 10 years old or a petrol vehicle is over 15 years old, and its fitness certificate has expired, it will be automatically deregistered.
The legal option is to scrap it since the registration certificate cannot be transferred.
“Even if you sell off the vehicles informally, the owner of the vehicle would be held liable if it is involved in an accident,” he added.
CARS24 also provides customers with the benefit of getting their car scrapped. The company has tie-ups with Registered Vehicle Scrapping Facilities. Customers can get to know the price instantly for scrapping. PTI
