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India has one of the biggest automotive markets in the world. The used car market has grown tremendously in the past few years. Unlike new cars, used cars may offer better margins to traders. However, the traders also have a greater obligation to prove that the used cars are of the desired quality.
View moreLet’s consider the various strategies that can be used by used car traders to profit in their business:
Countless cars from various models by dozens of automobile companies are currently in the Indian market. It is only by studying the market that you can learn everything about their specifications, demand, supply, etc.
There are varying regulations about how old vehicles are allowed on the streets. That can put a cap on how old cars can be traded as ‘used cars’ in different markets. If you have a specific market or market in mind, then you should study the regulations relating to the same and only trade in used cars that you are sure will fetch a good price in the market.
Unlike new cars, there is no MSP for used car, and thus, it’s up to traders to determine the right price for the used cars. Not only are there price variations between models, but there can be differences in prices of two cars of the same model and build due to the condition they are in. Estimating the price of used cars can thus be a complex calculation and a bit of art.
Sometimes, it may be profitable for traders of used cars to refurbish them as that can help them fetch a better price in the market. When doing this, please ensure that the refurbishment cost can be recovered in the form of increased margins. You must also try to use high-quality and preferably original components for the process. Further, you can consider getting refurbishment through a third party.
Many used car traders try to buy cars from the original users themselves, but that may not always be feasible. You should also look for reliable suppliers of used cars and try to foster a relationship with them.
Whether you want to sell used cars to other traders or to end customers, you will have to develop a market for yourself and find the right customers or buyers.
You must also be careful while selecting the right models to trade when it comes to used cars. Normally, it is luxury and semi-luxury used cars that give the best margins.
Cars require a lot of space to hold and also offer challenges in transportation. Thus, you will have to find a good way of getting around these challenges to optimise your used car operations.
AVR Logistics is the premier supplier of used car, as we offer the best deals on used car to all our trading partners. So, contact us to find a reliable trading partner in used car.
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