It will be difficult to buy old cars from April 01, the burden on companies will increase

Used Car Market: There is a big market for old cars i.e. second hand cars in the whole world including India. Especially after the Corona epidemic, the demand for used cars has increased. However, the used car market in India may face some difficulties in the coming days. Industry experts are apprehensive about this due to a recent official notification.

This notification came in December

The Ministry of Road Transport and Highways / MoRTH had issued a notification GSR 901(E) (GSR 901E) on December 22 last year. The ministry said that this change will bring transparency in the purchase and sale of registered cars through dealers and will make it easier to do business. The purpose of bringing the notification was to remove the difficulties faced in transferring a vehicle more than once.

This was the purpose of the notification

Apart from this, its purpose was also to fix the liabilities of third-party damages and to remove the difficulties in fixing the defaulter. The proposed changes in the notification are going to be effective from 01 April 2023. However, the industry says that the new changes will increase the burden of compliance with the rules on companies dealing in pre-owned vehicles ie old cars. Companies like Car Dekho and Cars24 are involved in buying and selling of used vehicles in India. The industry also says that there are problems regarding the interpretation of the notifications issued.

Used car market is so big

If we talk about statistics, apart from big companies like Car Dekho and Cars24, there is a big market for used cars in India. About 30,000 dealers across the country are engaged in the business of buying and selling used cars. According to various studies and estimates, the used car market in India is growing rapidly and it could be worth $50 billion by the year 2026.

this is the biggest problem

According to the pre-owned car industry, a major drawback of the proposed changes is that it has not clarified the conditions regarding the sale of old cars by one dealer to another. Due to this, the dealer who first buys the used car will continue to be the deemed owner, even if the car is sold to another dealer. This means that those transactions of old cars are going to be affected, which will be business to business.