Car manufacturers discourage discounted sales of phased-out car modelsCar dealers have no option but to sell phased-out cars as manufacturers disapprove of their discounted sales.
Apnaloan.com Research Bureau
13 Aug 2007
Car makers including Maruti Udyog, Hyundai, Ford, Fiat and Tata Motors have imposed restriction on dealers advertising their own discount offers or freebies on phased-out models that are hard to sell. The dealers then have no option but to sell these models through used-car outlets.
The car manufacturers themselves are tying up with used-car owners to liquidate old stocks of car models that have been phased out or replaced by upgraded models.
The popular models in the market include the Hyundai Sonata (replaced by the Embera in August 2005), the Maruti Baleno (replaced by the SX4 in December 2006) and the Hyundai Accent Viva (production of which has stopped), among others.
Prices of premium models like the Honda Accord and the Toyota Corolla are also expected to fall once the company launched upgrades. Such used car dealers generally get offers from cities like Delhi, Lucknow, Bangalore, Pune, Ahmedabad, and states like Rajasthan and Haryana.