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Old 12th June 2017, 16:31   #1
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Default Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Did you know that the no.3 car seller in India isn't Mahindra, Honda or Tata? It's Maruti True Value - related thread.

Didn't see a thread on Honda's 'best deal' showrooms, so starting this one. In a nutshell, they are aggressively targeting the used 2-wheeler space. Main benefits = fat profits (fatter than new models), ability to control the resale value of its products, happier dealers (due to additional revenue source), strong channel to sell all the customer trade-ins quickly, branding etc.

High points from press release just received:

• Two-wheeler industry’s first organized retail set-up exclusively for pre-owned 2-wheelers.

• 150th 'Best Deal' outlet opened. Will reach 200 in current FY. This 200 dealer target has been advanced.

• Interestingly in 2017 when the new two-wheeler's industry faced challenges like demonetization and transition from BS-III to BS-IV, there was a significant boost in demand for pre-owned two-wheelers.

• In FY 2016-17, sales of Honda’s pre-owned business grew by 23%...which is three times that of the new 2-wheeler industry's growth of 7% (new obviously forms a far larger base).

• Replacement cycle for two-wheelers has come down to 4-5 years.

• Best Deal's used 2-wheelers come with 2 free services and a 6 month warranty.

As a lover of pre-worshipped deals, I'm always happy to read of such developments .
Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment-150th-best-deal-aadhi-honda-coimbatore-tamil-nadu.jpg
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Old 12th June 2017, 20:34   #2
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Thanks for sharing this GTO.

I believe RE also has a separate chain for their pre-owned bikes, I am not sure if they actually have a separate showroom though.

I think this is a interesting move by Honda and I am sure others will follow suit soon enough. Probably, lot of unorganised players now will look to become mainstream.
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Old 13th June 2017, 04:30   #3
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

This is a great initiative that will help put mobility in the hands of more people at a lower cost, while helping the planet by having to manufacture fewer new vehicles.

I seriously hope, though, that the Honda attitude doesn't carry into these outlets too.
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Old 13th June 2017, 09:35   #4
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

In a market like India (now also the World's largest 2 wheeler market (India: Now the world's biggest market for 2-wheelers!)) they will surely do brisk business. I have plenty of people carrying more luggage on an Activa than a Piaggio Ape. Scooters like the Activa are favourites for small time businessmen and shop owners and now with the credibility (read as additional warranty of 6 months) they are surely going to sell well because many in India will find it a better buy than opting for a new one.

Last edited by GTO : 13th June 2017 at 10:48. Reason: Typo
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Old 13th June 2017, 10:33   #5
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Going Great Honda !

Read that there are over 100 Best Deal show rooms, spread across 70 cities.

Students, learner drivers, first time buyers, those looking to upgrade, those looking for a second bike, basically all of us looking at pre-worshiped bike deals will be benefited.

The good part is that all the documentation part will be taken care by them, so the vehicle transfer deed is seamless and hassle free.

Though the bikes will be sold at a premium and you can't bargain as hard as you would in a direct sale, you could have absolute peace of mind, since all the refurbished and replaced spares will be original and thus reliable in the long run.

I would any day prefer single brand re-sale outlets than multi branded resale outlets, since the domain knowledge and technical know-how is good in case of the parent company trained executives, technicians and service personnel.
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Old 13th June 2017, 10:39   #6
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Do they sell only Honda vehicles? Lost opportunity I'd say considering not even one bike made by Honda India is exciting enough.

Imagine getting a Duke 390 or some superbike for half the cost from an authorised seller instead of shady OLX deals.
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Old 13th June 2017, 10:55   #7
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Quote:
Originally Posted by dass View Post
I believe RE also has a separate chain for their pre-owned bikes, I am not sure if they actually have a separate showroom though.
Yeah, it's nowhere near as focused an effort as the likes of this initiative.

Quote:
Originally Posted by BLACKBLADE View Post
Read that there are over 100 Best Deal show rooms, spread across 70 cities.
Now 150 outlets covering 117 cities across 21 states of India.

Quote:
Though the bikes will be sold at a premium and you can't bargain as hard as you would in a direct sale, you could have absolute peace of mind
True. Plus the ticket size is smaller in two-wheelers, so I don't think a 5k premium will make much of a difference to anyone.

Quote:
Originally Posted by The Brutailer View Post
Do they sell only Honda vehicles?
I wouldn't think so. Maruti True Value also sells non-Maruti vehicles.

These used outlets are a great + profitable way to sell trade-ins of customers buying new Honda 2-wheelers. And not each one of those trade-ins will be a Honda vehicle. Of course, trade-ins aren't their only source of inventory - they can also buy from auctions, walk-in sellers etc.
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Old 13th June 2017, 11:42   #8
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

Do they buy outside state vehicles? As their spread is across the country would be easier for them like cars24 does albeit a slightly lesser price, which is OK with me as long as I can get rid of the hassle of taking my MH registered bike to Pune from Bangalore for NOC and stuff.

Tried contacting an agent in Pune but he is asking for 7k for NOC if I send him the documents. As its a 9.5 year old vehicle I dont think I would want to spend that much
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Old 14th June 2017, 10:23   #9
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

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Originally Posted by SoumenD View Post
Do they buy outside state vehicles?
Am sure they'll buy any & everything. However, it's usually the case that selling to a dealer gets you a lower price than if you were to sell the vehicle directly. For my Civic, no dealer was offering even 2 lakhs; a direct sale got me 2.5 lakhs.
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Old 14th June 2017, 11:08   #10
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Default Re: Just like Maruti True Value, Honda 2-wheelers is betting big on the pre-owned segment

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Originally Posted by GTO View Post
Am sure they'll buy any & everything. However, it's usually the case that selling to a dealer gets you a lower price than if you were to sell the vehicle directly. For my Civic, no dealer was offering even 2 lakhs; a direct sale got me 2.5 lakhs.
In case of cars its understandable as the difference runs into 30-60grands , but for bikes it wont be more than 5-6k. Plus yours' mostly was a MH registered car. Mine on the other hand is a MH registered two wheeler in Bangalore. So selling individually is virtually impossible.

I don't have much expectation from the ~10 year old bike. It has served me very well and continues to do so. If i dont get an option will continue to use it for local grocery chores till it totally dies on me Pricing isn't an issue. But the important part is I want to get rid of it in a legal way so that there's no future hassle.

Did anybody here deal with this HONDA's used bike dealership?
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