With prices of petrol and diesel soaring to a new high following a hike in fuel prices, demand for used small and fuel-efficient cars has gone up by as much as 30 per cent in less than a week. Price-sensitive customers are thronging to dealer outlets for used cars.

The spurt in demand for used cars, which had taken a beating following the showcasing of Nano and a 400 basis points excise duty cut on small cars, has seen a revival following the government’s move to increase prices of petrol and diesel by Rs 5 and Rs 3 respectively.

Concurrently, the demand for bigger and less fuel-efficient petrol cars of Honda, General Motors and Ford, among others, has dropped by almost 30 per cent. Small cars of Suzuki and Hyundai Motors are much in demand for their superior fuel efficiency and cheap running costs.

Used cars are mostly sought after by first-time buyers, who wish to own a four-wheeler for the first time or want to upgrade from an existing two-wheeler. These buyers are short on funds and want full value for their money. Used car buyers are more price- and quality-conscious than new car buyers, said a car dealer.

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