With GST came down, the new car prices have come down but the thing is the 2nd hand cars price have not dropped. And this is the problem because the difference between the old and new cars price is not that much. Now people who wants to learn car and use it for short time and then buy a new car for them its a problem.
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This is because say a cars which is 5 years old is just 40% less than the new car. So people usually go with the new car because even though you pay 40% more you will get the new car. For the old car there will be some or the other issues which you might not know. But if the old car would have been little less than going with the 2nd hand car makes sense.
The problem is people who have bought the cars when the GST was high, doesn't want to sell in less price and thus the price difference is getting less. I was watching a car price whose new hand price is around 6 lakhs where as the 7 year old one is going for 2.6 lakhs. Now if you are getting like this then it's ok but some of the same cars are listed for more than 3 lakhs which doesn't feel right.
And I am not sure about the data but because of this I have seen less people are buying the 2nd hand cars. One of my colleague wanted to buy a car and was ok with 2nd hand car. He is now thinking it's not worth it to go with 2nd hand car and getting the 1st hand or new car is better option. This is because the 2nd hand car might not fetch him enough when he tries to sell again.