Auto Dealers Using Pre-Owned Trick To Clear BS4 Stock?
Close
Latest News
Est. Reading Time:
1 minute

Auto Dealers Using Pre-Owned Trick To Clear BS4 Stock?

The lockdown imposed in the wake of the global pandemic has indubitably turned out to have disastrous effects on the Indian automotive industry. While the sale of the new cars has also seen a steep decline, it is the sale of BS-IV stocks or lack thereof, which was a cause of concern for many dealerships.

Also Read – BS4 Car Discount Extended – Post Lockdown Car Deals

The deadline given by the Supreme Court to clear off the BS-IV stock has been extended in the wake of lockdown. Yet, many dealerships are struggling to clear the inventory. The dealers fear they could incur heavy losses if unsold stocks remain. In an ingenious method to help themselves, several automobile dealerships across India have found a way out. They have registered a large number of the unsold BS-IV vehicles under proxy owners. This will help the dealerships sell their stock as pre-owned or used cars post-deadline.

The ban imposed does not cover the sale of pre-owned cars and thus dealerships will be able to sell the BS-IV stock without any difficulty. The vehicles will, however, have to be sold at a lesser price, since they would be termed under “used” cars.

“Companies have different strategies to work with. We are encouraging the dealers to pick up BS-IV vehicles, register them, and have a second sale. The dealer will have a huge arbitrage selling it to a customer who will value the BS-IV product. This is because the BS-VI vehicles are going to be so expensive. There are financiers who are willing to fund those vehicles too. It’s a win-win for all”, said a senior executive.

Leave a Reply

Your email address will not be published. Required fields are marked *