Used Vehicles - Opportunity for Manufactures and Consumers

The pursuit of growth is forcing companies’ to capitalize on the value which lies hidden in the value chain of the business. Companies like Maruti were the first one to go into used car sales through their “True Value” chains, and now in many cities the true value dealership is as good as that of the new car dealership. Now Ashokleyland is entering into the used truck market. For the consumer it is win-win situation, because he can rely on the companies to provide warranty and assurance on the quality of the car or truck he or she is purchasing and the company gains by gaining an entry into hitherto unorganized market. The process of entering into the sales of used cars also helps push the resale value of the company’s vehicles. The objective is to squeeze out as much value as possible from the value chain and inturn also provide value to the customer. Companies like Porsche claim that 2/3 of the cars ever manufactured by the company are still on the road, maybe one of these days Maruti’s might also come up with such a claim.