Pre owned bike market in Ahmedabad is still reeling under the pressure of demonetization. Used bike dealers have seen a drop of 80% in their sales and customers are still not able to cope up with the lack of currency.
Dealers say that the customers are coming but they do not want to purchase immediately. Ahmedabad customers are also very price sensitive and cal off the deal for a difference of 500-1000Rs. Used bike sellers have very thin margin on low cost bikes. Price sensitiveness goes beyond comprehension when the buyers even do not buy a low cost third party insurance and buy the bikes by just paying a small penalty of Rs 100-200Rs. Although the bike insurance is mandatory as per the RTO rules. However the customers do not pay heed to the request from the sellers and try to get away by paying a paltry penalty.
Ahmedabad market is a small 2 wheeler market divided in to 3-4 major bike markets. Used bike market runs on personal relations and that may be a reason why reputed dealers in Ahmadabad offer some kind of on shop dealer warranty on the bikes sold. Buyers also demand service and bring back the bike to dealer shop in case if there is any fault in the bought bike. Rather than landing in such a tricky situation, dealer prefer to sell bikes with warranty usually ranging from 15- 30 days.
Customers also do not want to go very far in the city and prefer t buy from a nearby seller, even of their desired bike is available in the other parts of city. It seems that customers are conservative and do not want to far away from from the locality. One of the reasons could be that they seem more confident to avail the after-sales service from a nearby dealer than the far off one.
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