𝐔𝐬𝐞𝐝 𝐂𝐚𝐫 𝐏𝐫𝐢𝐜𝐞𝐬 𝐑𝐞𝐦𝐚𝐢𝐧 𝐒𝐭𝐮𝐛𝐛𝐨𝐫𝐧𝐥𝐲 𝐇𝐢𝐠𝐡 𝐃𝐞𝐬𝐩𝐢𝐭𝐞 𝐌𝐨𝐫𝐚𝐭𝐨𝐫𝐢𝐮𝐦 𝐋𝐢𝐟𝐭

…𝑩𝒖𝒚𝒆𝒓𝒔 𝒓𝒆𝒑𝒐𝒓𝒕 𝒇𝒓𝒖𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏 𝒂𝒔 𝒑𝒓𝒊𝒄𝒆𝒔 𝒇𝒐𝒓 𝒔𝒆𝒄𝒐𝒏𝒅-𝒉𝒂𝒏𝒅 𝒄𝒂𝒓𝒔 𝒔𝒕𝒂𝒚 𝒆𝒍𝒆𝒗𝒂𝒕𝒆𝒅, 𝒅𝒆𝒔𝒑𝒊𝒕𝒆 𝒅𝒆𝒑𝒓𝒆𝒄𝒊𝒂𝒕𝒊𝒏𝒈 𝒗𝒂𝒍𝒖𝒆

By Bikash Mishra

The lifting of the vehicle import moratorium about four months ago by the government has sent ripples through the automobile market, with significant economic implications for both consumers and industry stakeholders. The resumption of vehicle imports has sparked renewed interest among buyers, but also led to surprising price hikes in the second-hand vehicle market.

Suman Thapa, Chief Operating Officer (COO) of Jordan Asset Brokers, has observed the shift firsthand. He reported that some buyers are attempting to sell older models like the 2009 Wagon R for as much as Nu 400,000, a price he considers inflated compared to his dealership’s typical sales range of Nu 270,000 to Nu 280,000.

“Many buyers are unaware of current market conditions and are overpricing their vehicles,” Suman Thapa explained, noting that the moratorium initially caused a surge in prices due to the limited supply. He aims to align second-hand vehicle prices with those of new cars in the post-moratorium era to better meet consumer expectations.

Echoing this concern, a 27-year-old buyer at Jordan Asset Brokers shared his frustration, having hoped for a price drop after the moratorium ended. “During the moratorium, prices were inflated due to limited availability,” he said, “I thought they would stabilize after the restriction lift, but they haven’t.” He expressed hope that the market would eventually find a more reasonable balance.

Sonam Jigsel Wangchuk, the Chief Executive Officer (CEO) of Rigsel Real Estate, shed light on the dramatic rise in second-hand vehicle prices during the moratorium. For instance, a 2005 Alto model, which typically sold for around Nu 260,000 before the restrictions, jumped to about Nu 330,000. However, with the lifting of the moratorium and the re-entry of new vehicles into the market, prices have started to normalize, with the same model now selling for about Nu 230,000. “The price adjustments are not just due to supply and demand; factors like fuel efficiency and lower spare parts costs also come into play,” Sonam Jigsel Wangchuk explained.

He also noted that the moratorium created opportunities for brokers, driving up demand for second-hand vehicles and leading to higher transaction volumes and profitability. However, he stressed that during this period, brokers had to maintain transparency and fair dealings to build trust with consumers. “Heightened consumer expectations required us to handle negotiations carefully,” he said.

As new vehicles have flooded the market, the demand for second-hand cars has slightly declined, and Rigsel Real Estate has responded by focusing on offering value-based services such as thorough vehicle inspections, paperwork handling, and financial assistance to stay competitive.

Jamyang Loday, a 25-year-old buyer at Rigsel Real Estate, reflected on the challenges he faced during the moratorium. “I had fewer choices and paid more due to limited supply,” he recalled. However, with the lifting of the restrictions, Jamyang Loday noted a shift toward a more buyer-friendly market. “There are more options now, and prices seem more flexible,” he said, hopeful that the market will continue to offer better deals.