With nearly everything taking up the digital route to boom, the pre-owned car industry was one of the early adopters of this approach. Well ahead of the pandemic, the used car market took the road less taken. Consequently, the pre-owned car market has grown much faster than expectations. Moreover, as users now avoid using public transport, the demand for affordable pre-owned cars has seen a rise.
However, the market is facing certain challenges, and so is the case with the consumers. To upkeep the consumer interest in the pre-owned car market, Chase India and Consumer VOICE have requested for certain regulations to be drafted for the regulation of Motor Vehicle Intermediaries. As of now, the Motor Vehicle Act does not recognize the intermediaries.
The report from Consumer VOICE and Chase India states that recognition and regulation of the Motor Vehicle Intermediaries under the Motor Vehicle Act will aid the market with the much-needed pace. Also, it will provide legal protection to the buyers and sellers of pre-owned vehicles. Since the market is currently dominated by unorganized sectors, the MVI could ensure a positive change.
Moreover, the report sheds light on one of the most important issues that a seller faces while participating in the transaction process in a pre-owned car market – transfer of ownership. Most cars are generally sold by third-party vendors, hence sellers often stay at risk until the ownership is transferred to the buyer. In such a case, MVI will be able to allow temporary registrations of the vehicles for the time being.
On the same note, Ashim Sanyal, Chief Operating Officer, Consumer VOICE added, “Consumers would be the biggest beneficiaries of the Motor Vehicle Intermediaries come under the ambit of the law. This would ensure consumer empowerment as they would not be held accountable in case of misuse of their vehicle by intermediaries. Therefore, the MVI classification would provide clarity and ensure better consumer support.”
Kaushal Mahan, Group Business Director, Chase India, said, “Through the report, we aim to provide a comprehensive roadmap based on various international models to regulate the sector. This would enable better coordination between the center and state governments as well as ensure the growth of the tech-enabled industry. Moreover, the formalization of the sector would attract more start-ups that could potentially be future unicorns”.
With the curated demand for the MVI, the overall pre-owned car business will see the light of positivity and transparency. Besides, sellers will increase their participation in the market, as they wouldn’t be induced directly to the risk.
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