The economic downturn now seems to have a silver lining. Reportedly an estimated 1,000 second-hand cars have flooded Bangalore’s market in the last four months and this oversupply has pushed second hand car prices down by a whopping 30% as compared to a year ago. In some cases the price drop has been close to 50%. 

 

An advertisement of a second hand car dealer in Whitefield area of Bangalore read “due to the recession many IT professionals have given up their cars, so we are selling them between Rs 50,000 and Rs 2,50,000”.

 

In another case a 2008 model BMW 3 Series having run only 300 km is now available for Rs 25 Lakh. Besides this a 2008 Honda City was driven out of a dealership for a cool Rs 6 lakh, Hyundai Santro 2008 model went for just Rs 3 lakh. A 2008 Maruti Alto; only three months old has a discount tag of Rs 1 lakh.



In order to offload inventory, Classic Automotives is planning to launch a scheme that will offer buyers free gold worth Rs 1.25 lakh with the purchase of a car. In the last four months, on an average, the number of people looking to sell their cars has increased by 60 a month, as compared to the same period in 2007-08 said another dealer in Koramangala.