Sluggish economy and market conditions are discouraging potential new car buyers, who are happy to settle for used cars.

Availability of quality 2^nd hand cars in the resale market. (Cars repossessed by Finance companies, and cars obtained by dealers in exchange / buyback schemes, are available at bargain rates.)

The fear of threat from underworld extortionists. (Due to which, a lot of premium car owners have changed their bigger & attractive car for inconspicuous and common car models.)

Dealers and brokers are tagging lower commissions to facilitate transactions. (Unlike the past when the dealers could invest in a 2^nd hand car and keep holding the car till they got a hefty margin / commission, today, with tighter liquidity, they prefer lower margins and more turnover.)

Some customers are avoiding buying a new car, as the changed rules, require them to produce a PAN number - issued by the Income Tax authorities. Those who do not possess a PAN / GIR No. have to submit a declaration (Form.No: 60)