THE LAUNCH of Tata Nano has created a threat not only to new cars but also to the used cars. The sales of used cars have come down to 15-30 per cent. The used car dealers are facing problems as the buyers are waiting for Nano’s launch, which will be available for rupees 1.25 lakh, which is cheaper than the second-hand cars in the A-segment like Maruti 800 and Alto.

Looking into the sales figure, we notice that the price of a second-hand Maruti 800 has come down to 30 per cent. For instance, for the 2002 model, the current price is nearly rupees 75 thousand from rupees 1.1 lakh.

Hyundai Santro’s (2003) price has come down to 18 per cent at rupees 1.65 lakh from the earlier price of rupees two lakh. A 2003 WagonR model from Maruti Suzuki is currently sold at rupees 1. 8 lakh with the price cut of Rs 33,000. Maruti Alto has not been spared either. Its price has also come down to rupees 1.10 lakh from rupees 1.35 lakh after the Nano’s display.

In the small car segment, there was a remarkable sale of 70 per cent of used-cars within the country, though the car manufacturers are slowly getting into the used car sales but the local and uncertified market for the used car dominates the most. Any further improvement on the price and the sales of the used cars can be predicted only after Nano hits the road.

Another reason that contributes to this issue is that Nano is also getting a better deal from the financial firms with easy Equated Monthly Installment (EMI) of rupees 1,100 per month and with a much lower interest rate of 11 per cent compared to the used cars carrying an interest rate of 17-18 per cent.