Looking through the Magnifying Glass – Used car buying tips

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Mahindra First Choice Wheels sells 1 lakh vehicles through its ‘Autobid’ auction platform

February 14, 2013, Mumbai: Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand used car company, today announced that it has sold one lakh vehicles through its ‘Autobid’ auction platform (formerly called eDiig). The platform has conducted nearly 7,500 auctions with over 6,500 buyers across nearly 900 locations, making it the leading used vehicle b2b platform in India.

L-R: Mr. Rajeev Dubey, President (Group HR, Corporate Services & After-Market) & Member of the Group Executive Board congratulates Mr. Nagendra Palle, CEO, MFCWL on selling more than 1 lakh cars through its Autobid online platform

According to Nagendra Palle, CEO, Mahindra First Choice Wheels Ltd., “Autobid is a world class auction platform that allows for immense flexibility in auction formats which provides excellent liquidity for sellers and buyers, producing the best vehicle values for either customer, with a high conversion rate. The one lakh actual transactions represent the number of vehicles sold through the platform and this scale is testament to the efficacy of the platform and the efficiency of our team. Our intent is to continue to invest in this platform to broaden its reach within India’s used vehicle industry.”

He added, “Our platform offers complete transparency and end-to-end analytics to our corporate and dealer customers and I am confident that it will continue to grow rapidly in the coming years. The success of the auction platform illustrates the growing need for and adoption of the ‘bricks and clicks’ hybrid model by the used vehicle industry. We are looking forward to playing a key role in expanding this model over the next few years.” 

According to B Ganeshkumar, Head of e-business at MFCWL and one of the original founders of eDiig, “It is a proud moment for us to see the transaction numbers rise. We are continuing to innovate with our products and processes to bring the best value to our customers.” 

The company is working on launching a series of products and value added services to support the used vehicle market. It has recently launched two value added services - ‘AutoInspekt’, its vehicle evaluation service, and ‘IBB’, which provides pricing guidance for buyers and sellers, both of which are unique, industry first features. 

As part of the Autobid latform offering, dealers can look forward to new products such as certification, warranty, insurance and financing in the future. The company is focused on building an ecosystem for the dealers with the objective of supporting them in generating traffic to the dealership, sourcing inventory and utilizing technology in order to enable a transparent retail transaction that the consumer can trust.

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Buying a used car? Check the documents

Buying a used car?  Check the documents

To avoid any problems or penalties, make sure you get the requisite papers from the owner

Times Of India 

The pre-owned car market is brimming with choices. Unfortunately, this semi-organised market is also teeming with unscrupulous sellers. So, if you don't want to be taken for a ride, check the ve­hicle's paperwork thoroughly. Besides, make sure that the seller informs the regional transport office (RTO) where the car was registered about the sale within 14 days of buying the vehicle.  Here's a list of documents that you should demand from the seller before finalising the deal. 

Pre-owned car dealer: Buying from a dealer is less cumbersome as he takes care of the transfer of insurance and RC in the name of the new own­er. However, verify that you are purchasing direct­ly from the car owner and that the vehicle has not been transferred in the name of the dealer. "If the car is in the name of the dealer, who has bought it from the original owner, purchasing it will make you the third owner. This will reduce the resale val­ue of the car," advises Povaiah.

You must also enquire if the dealer provides a warranty for the car. While some don't, there are a few who offer a warranty of six months to one year

Car company: Almost all auto companies have their own pre-owned car outlets. Maruti Suzuki has True Value, Mahindra & Mahindra has First Choice, while Hyundai has First Advantage. Even four-wheelers in the luxury space have a share in the burgeoning used car market in the country. Mercedes has ProvenExclusivity while BMW owns Premium Selection. 

Insurance immediately: With car insurance com­panies clamouring to woo customers, this should not be much of an issue unless the car is more than 15 years old," says Roshun Povaiah, deputy man­aging editor of Cartoq.com, a car advisory website.

Form 32 & 35: You will need these documents if the previous owner had taken a loan to purchase the car. Before buying, ask the seller to give you a copy of the no-objection certificate from the finance company, which will clarify that the entire loan has been paid off. If you don't take care of this detail, you could land in a soup. For, after you take pos­session of the car and the registration certificate is transferred in your name, the lender may ask you as the new owner to pay the pending loan.

Service book: You should go through the service history of the vehicle, since it will reveal to you the condition of the car. A vehicle that has been serv­iced on time and through authorised centres will be in a better running condition than one that has been serviced infrequently
Road tax receipt: This tax is a one-time payment, which should ideally be paid by the first owner of the car when he registers the vehicle. If it hasn't been paid, the penalty can run into lakhs of rupees over time, and you, as the new owner, will have to bear this financial burden. The tax varies among states and ranges from 2-18 %, so you should ensure that the seller provides you a receipt for the tax paid.

Car purchase invoice: A dealer or a company will provide you a printed bill along with the car. However, this may not be possible if you are purchasing the car from an individual. "In such a case, you can demand a sale receipt from the sell­er," says Povaiah.
Dual fuel certification for retro fitment: If the car has been modified to run on two types of fuels, ask the seller for the dual fuel certification, as well as an NOC from the RTO, which certifies that the ve­hicle can run on both fuels. The retro fitment is a replaceable piece in the vehicle and has a guaran­tee of five years from the time it is installed, so you must ask the seller for its sale receipt too.

Who is a better seller?

Individual: Though looking for an individual buy­er is time-consuming and cumbersome, it can help you get the best deal since no middleman is involved. Povaiah says, "It is laborious, but you can get the car at a lesser price. You will also be sure that what you see is what you get, with hardly any tinkering done to the vehicle." However, a good idea will be to take a trusted mechanic along with you while checking the car. He will be able to ensure that you are not sold a lemon. 

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Mahindra First Choice to launch e-market for used cars

Used car retailer, Mahindra First Choice Wheels Ltd. (MFCWL), is planning to launch a virtual marketplace for used cars in January next year. Initially, registered dealers will participate in the sale and purchase of used vehicles, and later on it would be extended to end consumers.

Speaking to Business Standard, Rajeev Dubey, president, HR, after-market & corporate services, Mahindra & Mahindra Ltd, and member of the group executive board, said, “The Virtual marketplace for used cars is likely to be operational by January next year. Initially, it would be a D2D affair in which registered dealer with First Choice will participate. Later on, we will extend it to end consumers. We will work on the ‘clicks and mortar’ model, and have plans to become India’s largest virtual platform for used cars.”

“This would enable us to sell our products on the web and the existing locations will facilitate the physical transaction of vehicles. With these initiatives we aim to organise this highly unorganised used-car segment,” he added.  

MFCWL is the country’s preferred used car mart and has 214 outlets in 115 cities across India. The company plans to expand this number to 500 outlets in the next three years. “This implies that customers will soon be able to choose from a range of certified used cars throughout India, including the metros and tier-II towns and cities,” Dubey said. 

“Last year we sold 34,000 units and we are aiming to sell 46,000 cars by the end of this fiscal, and register a growth of around 35 per cent over the last fiscal. By 2015, we target to sell 1,00,000 cars across India, he said.

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Mahindra First Choice Will Launch e-Market For Used Cars Soon

Wednesday, December 26, 2012 5:50 Mahindra First Choice Wheels Ltd. (MFCWL) seems to be gearing up to open up an online marketplace for selling used cars.

MFCWL already owns & operates offline physical stores for reselling of second-hand cars & will soon open a e-shop confirmed Rajeev Dubey, President, HR, After-market & Corporate services, Mahindra & Mahindra Ltd, “The Virtual marketplace for used cars is likely to be operational by January next year” .

A virtual shop for used cars certainly seems like a risky proposition. While one is certainly aware about the state & features of a brand new car, a used car can have many nuances. There can be multiple hidden drawbacks which are impossible to spot on the website. While these minor defects can be very well acceptable, potential customers will have to physically inspect & sign-off before executing the decision to purchase.

How is MFCWL going to tackle this? The used-car dealership has a two-stage approach to handle such a necessity. The company will be adapting  Walmart’s famous business style of ‘Bricks N Clicks’ and will offer a chance to virtually check the options & physically verify the same at an offline location. Only when the potential buyer is satisfied at both the junctures, will a sale be made. This approach has a clear advantage over an offline-only pattern employed commonly right now.

India’s used car segment & market holds great potential. But owing to lack of organization, this sector lies hugely under-developed. There are multiple vendors within the same locality & due to chronic decentralization; prices, offers & car types vary wildly.

Secondly, the company has chosen to prioritize registered dealers & will launch a ‘Dealer To Dealer’ (D2D) operation initially. This should help the company gain traction with multiple physical used-car shop owners & build a dependable network. Once this is done, the company can confidently list used-cars that will be surely available for offline inspection.

A solution like this  can truly revolutionalize the second hand car market, just like how the aggregation sites Wego, Tushky , etc are doing to the online travel segment right now. What do you think?

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Mahindra First Choice Expands Footprints in J&K

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Mahindra plans expansion of the used car business in J & K.

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Mahindra First Choice Wheels targets 35% growth this fiscal

MUMBAI: Certified used car player Mahindra First Choice Wheels Ltd (MFCWL)  is eyeing 35 per cent growth this year.

The company also aims to sell over 1 lakh units of used cars by FY15. In the current year, the company eyes 35 per cent growth and is hoping to sell over 46,000 vehicles of various brands.

During 2011-12, the company had sold 34,200 units. The parent M&M has invested Rs 200 crore into this venture so far. Last fiscal, the multi-brand used-cars player sold over 85 per cent of the cars from non-Mahindra brands.

Since the beginning, the five-year-old company has been clocking a CAGR of 40 per cent by volume and in the first half it has clipped at 30 per cent.

The company is also planning to open 500 outlets by FY15. Currently, the Rs 1,000-crore company holds presence in 115 cities which will be increased up to 125 by the end of the current fiscal

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No Film Allowed On the Glass of Vehicles

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Mahindra First Choice Wheels expands network

India Blooms News Service

Mumbai, Oct 31 (IBNS): Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand certified used car company, on Wednesday said it has reached a new milestone with its pan India network comprising of 200 outlets.

This is truly a rise moment for the company. Conviction in the business model has resulted in the company today achieving a significant milestone of 200 outlets,” said Anand Mahindra, Chairman and Managing Director, Mahindra Group.

“This is an important day for Mahindra First Choice Wheels. We have reached 200 outlets and are well on our way to achieving the target of 500 outlets by F-15," said Rajeev Dubey President President (Group HR, Corporate Services & After Market) & Member of the Group Executive Board, Mahindra & Mahindra Ltd.

"We have grown at a CAGR of 40% over the last 5 years and even in the current year when the growth rate for new passenger vehicles is at 6%, we have grown by 30%,” he said.

The used car industry often focuses only on the car transaction and not on the total experience of car-ownership. With its fresh look and feel, MFCWL hopes to change this perception and create a unique, aspirational experience for the used car consumer. 

Mahindra First Choice Wheels is the country’s preferred used car mart and is India’s largest multi-brand player, with 200 outlets in over 100 towns across India. 

The company plans to expand this number to 500 outlets in the next three years. 

This implies that customers will soon be able to choose from a range of certified used cars throughout India, including the metros and tier-2 towns and cities

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Mahindra First Choice eyes 35 pc growth this fiscal

Mumbai, Oct 31 (PTI): Mahindra First Choice Wheels, the multi-brand used-cars offering from the Mahindra & Mahindra stable, today said it will grow at 35 percent this year. "By FY15, our target is to sell over 1 lakh units of used cars. This year we will be growing at 35 percent and will sell over 46,000 vehicles of various brands," M&M president for corporate services & after-market and group HR Rajeev Dubey told PTI here. In FY12, the company had sold 34,200 units, he said, adding that parent M&M has invested Rs 200 crore into this venture so far. Dubey also said over 85 percent of the cars it sold last fiscal were non-Mahindra brands. The five-year-old company has been clocking a CAGR of 40 per cent by volume since the beginning and in the first half it has clipped at 30 per cent, when the new car industry managed just about 6 per cent, Dubey said. He also said the Rs 1,000-crore company, the largest mult-brand operator in the used-car space, will be opening 500 outlets by FY15. Currently it is present in 115 cities which will be scaled up to 125 by the end of the current fiscal. Quoting a recent Crisil study, Dubey said by FY17 used market should be twice the size of the new car market. In FY12, the used car space was worth 2.8 million units, which was 1.2 times the new car market size, Dubey said, adding in the US, the old and new market ratio is 3:1, while here it is currently 1:2 and will touch 2:1 by FY17. The unorganised market is around 87 percent and 65 percent sales happen in the customer-to-customer space. Of the 200 outlets, only five are owned and operated by the company while the rest are franchisees, he said. The competition is Maruti, Hyundai and Tata Motors who also have used car portfolios but sell only their own models. PTI BEN KRK RAH ns YB RYS  

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