KARUR: The challenges of commuting by public transport once lock down is lifted is pushing the demand for pre-owned vehicles. Sensing the sentiment, private money-lenders allegedly have increased interest rates.
With only limited buses available currently, people returning to work are facing difficulties in reaching their workplace.
The thought of the milling crowds returning to the bus stops and railway stations and the social distancing norms that are to be followed in public transport is making people flock to outlets selling pre-owned automobiles.
Though dealers are rejoicing, their joy is short lived as financiers increased the interest rate for the loan. “We reopening the shops after a gap of over 40 days, and people started showing interest in buying budget-friendly two-wheelers,” said Vinoth, a dealer. “Though prices of several commodities increased post relaxation, price of used two-wheelers remain the same. People are interested in buying budget friendly two-wheelers that costs around Rs 10,000,” he added.
“With demand increasing day by day, there are only a very few budget friendly vehicles available in the market. Apart from private financiers, the banks must come forward to provide loans for pre-owned vehicles,” he said.
Pushparaj, a used vehicle buyer said, “I am working at a private textile industry in Karur. Generally, I used to commute by bus to reach my workplace. But now, since public transport services have not been resumed, it is difficult for commuters like us to reach our workplace. So I decided to buy a second-hand two-wheeler. After the lockdown relaxation, the interest rate for loans have been increased by the private financiers. The financiers would be able to get more customers, if they reduce their interest rates for used vehicles.”
Similarly, the car dealers also expressed their concerns over the increased interest rates. The dealers say that it will take about 5 - 6 months for the trading of pre-owned vehicles to return to normal.