Key Triggers For Spike In Used Car Sales | AU Small Finance Bank
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What do you think are the key triggers that are accounting for the spike in used car sales at the moment?

    Mr. Romil Chaudhary, Owner - Vinayak Cars, Jaipur

     

    What do you think are the key triggers that are accounting for the spike in used car sales at the moment?

    Delayed availability of new cars due to chip shortage is one of the primary triggers. That apart, factors like pricing of new cars, better understanding of used cars and relative affordability also play a key role. Customer aspirations in terms of changing cars frequently is also tilting the balance in favour of used cars.
     

    How are you planning to address the festive demand?

    Expectations are high going into this ongoing festive season. We have ramped up our inventory in anticipation. However, that said, this is not a new phenomenon. We have been used to handle this kind of situation for the past 25 years and it is business as always for us.
     

    What special offers and discount deals are on the anvil?

    Overall, our offers are more likely to be volume based but without a doubt, customer discounting has gone up. We are trying to offer customer pricing benefit. On the whole there is a shift in our business operation strategy too, where we are focussing more on volumes at lesser margins. This is expected to help spike up the relative footfall as well.  
     

    In terms of percentage, how much of an increase are you expecting in this festive season?

    We are expecting a significant bump up in demand and sale of used cars in the ongoing festive season. Ballpark, I will peg my estimates around a 30 percent rise in sales.
     

    What is your outlook for the used car sales for entire FY2022 and the Q3 of FY2022? 

    On the whole, Q3 is looking positive and also for the next financial year we expect the market to go up based on the demand trends.