Demand for used vehicles rises in Chennai post Floods

Images with Used cars
Images with Used cars


K Mahalingam, an IIM-Calcutta graduate managing the family business of selling used cars, TS Mahalingam & Sons, is experiencing a moment of truth about the demand a calamity creates for his kind of service. The ravaging floods that swept Chennai early December left in its wake a pile of submerged cars, now rotting in the garages for long repair or relegated for the scrapyard.Scores of citizens whose cars have been damaged in the flood are making enquiries with used car dealers or even making purchases for personal transport in the interim, giving a push to in second-hand car dealing in a city historically trailing NCR, Mumbai and Bengaluru in this business. Used-car dealers say the demand pick-up follows a lull through the last two months when incessant rains affected businesses and normal life. Now, the calls and conversion rates are promising.

“Their insurance claims are taking an inordinate time and people want interim vehicles. This is leading to a jump in preliminary calls and purchases, especially in the lower budget segments between Rs 2-3 lakh,” says Mahalingam.

Conversion rates at his venture have gone up by at least 30%, constrained though on used-car supply.

Mohammed JK Khan, a first-generation entrepreneur running Jee Jay Cars in Velachery, one of the worst-hit areas during the floods, is confident he will close December with an impressive sales record compared to the average of 20 sales, judging by the willing ness of prospective buyers to commit to a purchase. The used-car segment has seen consistent entry from large original equipment manufacturers targeting a burgeoning market that is increasing with lowering usage spans of cars.

Chennai, a market considered to be geared toward new cars than pre-owned ones, figures after National Capital Region, Mumbai, and Bengaluru in the pecking order of used cars businesses. Dealers are finding pockets of south Chennai, ad versely affected compared to the northern parts, just beginning to look for old cars, signalling strong underlying demand that might show up in the coming months.

“I see a spike in demand coming in a month from consumers as thousands of cars have been swept off the road and that void needs to be filled,” says Nagendra Palle, who heads Mahindra First Choice Wheels, the multi-brand used car dealer from the Mahindra Group.

Palle says the beginnings of this consumer demand are noticeable on their wholesale platform for used cars, where insurers auction off repossessed cars to car dealers or accident worn vehicles to scrap dealers.

“We are already seeing a spike of activity on the wholesale platform with insurers crowding it with flood-hit cars. These cars will be replaced in the market, and a good number could be second-hand cars.”

The luxury car market is part of this trend. German carmaker Audi has told ET it has seen a sales uptrend postfloods and that it will introduce an Audi-only exchange offer for Chennai customers to facilitate purchases of new cars.

Source: ET

Premium Used Cars – Audis, BMWs sell dirt cheap in flood-ravaged Chennai



If you wish to pick up a used fancy car at a throwaway price, maybe it is time to travel to the Tamil Nadu capital for some bargain-hunting.

Thousands of cars, including marquee brands such as Mercedes Benz, BMW, Audi, Jaguar, Porsche and Bentley, are going under the hammer for as little as Rs 2 lakh. The only catch is these were “damaged” in the devastating December deluge in Chennai.

Classified by insurance firms as “damaged vehicles” beyond repairs, auctioneers are putting up for sale some 10,000 vehicles at cut-price rates. Auction site has lined up a motley mix of cars at Kora Truck Park on the Chennai-Bangalore highway that were salvaged from the floods.

Chief operating officer of’s auctions division Abhishek Gautam said an Audi A4 manufactured in 2011 fetched as little as Rs 3 lakh. Several high-end models, such as the Porsche sports coupe, have sold for anything between Rs 5 lakh and Rs 15 lakh.

The bargain price of these cars depends on their make, year of manufacturing and the extent of damage the floods have caused. An auctioneer said it is possible to get a high-end luxury model at 40% of the ex-showroom price. Bargain-hunters were thronging these auctions from far and wide with a firm faith in their mechanic or workshop to bring these almost-junks back to life.

“It is a chance I am willing to take,” said S Venkat, a businessman from Chittoor in Andhra Pradesh looking for a Mahindra XUV 500 at the Copart Yard on Wednesday.

A gleaming silver grey machine caught his fancy and he was willing to go up to Rs 8.5 lakh. But within seconds, the online bid for the SUV touched Rs 9.5 lakh — way beyond his budget.

A disappointed Venkat said: “See there is not a drop of water or trace of rust anywhere inside the vehicle or in the engine. And it is almost brand new, which costs Rs 17 lakh.” According to a rough estimate of insurance claims filed by customers, the number of damaged cars could be around 30,000. Of these, at least 10,000 are classified majorly damaged or beyond repairs.

Source: HT

Used Hyundai Eon Car For Sale D-Lite


Manufature: Jun 2014

Distance: 20,000 KM

Fuel: Petrol

Transmission: Manual

City: Chennai


  • C
  • Engine
  • Brakes
  • Electricals
  • Seats
  • Battery
  • Exterior
  • Interior
  • Suspensions
  • Tyres
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  • Price
    3.35 lakhs

  • Year
    Jun 2014
  • Kilometer
    20,000 km
  • Fuel Type
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  • Car Available at

    Adambakkam, Chennai

  • Color
  • Fuel Economy
    Not Available
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  • No. of Owner(s)
    First Owner
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  • Insurance
    Comprehensive , till 13 Jul 2016

    Used Car Insurance from Bharti Axa. Get a Free Quote

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  • Lasted Updated
    5 day(s) ago