Second hand Nano selling for a premium. Nano a better bet than IPO?By Sriram Vadlamani Sep 20, 2009 12:00AM UTC
Can you believe that? A second hand Tata Nano car is selling for a premium of Rs. 25000-35000 rupees over the cost price. The same car if bought directly from Tata would cost less.
Only problem with buying from Tata Motors is, it is a long and tedious process. The car buyers are chosen through a lottery system. After which they have to wait for a while for the car to roll off the assembly line. People who are not willing to wait are going for the second hand Nano.
There are 2 reasons for this :
- Proxy booking. The booking done with the only intention of selling.
- Those who paid an advance and who got the car are unable to pay the full amount and hence selling it.
Sources say that several of these cars are actually coming from smaller towns where proxy book was done to buy these cars through smaller dealers who are not driving them to Bombay and selling them there at a premium of around Rs 25,000–35,000. More Nanos will be available sooner considering the demand which is there in the market. (MoneyControl)
Technically these are not second hand but the RC book will have 2 names.
Looks like Tata Nano is a better bet than the IPO’s. Doesn’t it?