Old Cars: The market for second-hand cars in Delhi has gone haywire. Dealers in localities such as Karol Bagh, Preet Vihar, Pitampura, and Moti Nagar are in serious trouble. There are more than a thousand dealers dealing with second-hand cars in these localities. Due to new regulations on old petrol and diesel cars, the prices have fallen drastically. Huge losses are being incurred by many of the traders and they do not know how to tackle the issue.
Prices Crash Due to Vehicle Restrictions
Old petrol and diesel vehicles in Delhi are under a strict prohibition. Petrol vehicles over 15 years old and diesel vehicles over 10 years old cannot ply on city roads. The Delhi government had also cut off fuel supply for these vehicles in the wake of court orders. Due to such stringent regulations, second-hand car prices have declined by as much as 40 to 50 percent over the last few days. Luxury vehicles that had been selling for between 6 to 7 lakh rupees previously are now hardly managing to fetch even 4 to 5 lakh rupees, as per the Chamber of Trade and Industry (CTI). Car traders have been spooked by this.
Temporary Relief Offers Little Hope
The prohibition on old cars, coming into effect from July 1, has been put on hold for a while. The Commission for Air Quality Management made this move at the behest of the environment minister. However, this is no reprieve for long. The operation against End of Life (EOL) vehicles remains in effect. Several vehicles already seized are still piling up, and their fate remains uncertain. Old car owners and dealers are still concerned despite this brief window of relief.
Traders Incurring Massive Losses
Most old cars from Delhi are usually sold in states like Punjab, Uttar Pradesh, Rajasthan, Bihar, Tamil Nadu, Karnataka, and Kerala. But buyers from these states are also bargaining hard now because they know about Delhi’s rules. This has added more problems for traders. Dealers say they have to sell their cars at nearly one-fourth of the earlier prices. Many feel this is their worst phase yet.
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Difficulty Obtaining NOC Delays Sales
On top of declining prices, traders experience greater stress with paperwork. To shift old vehicles to other states, an NOC (No Objection Certificate) is required. In the past it was easy, but nowadays the procedure has become sluggish and technical in nature. Without NOC, dealers are unable to sell their vehicles outside Delhi, and this has deepened the second-hand car market crisis. Most expect the government to act quickly to shield them from further losses.