New Delhi: Prices of second-hand cars in the national capital have witnessed a sharp fall in recent days, with traders reporting a decline of 40 to 50 per cent, the Chamber of Trade and Industry (CTI) said on Friday.

CTI Chairman Brijesh Goyal has said the market for overage vehicles in Delhi has been severely affected, with nearly 60 lakh vehicles impacted by the sudden downturn. He attributed the price crash to restrictions related to End-of-Life (EOL) vehicles, which have crossed the permissible age limit for operation in Delhi.

Goyal, also an automobile businessman, claimed that traders were being forced to sell cars at significantly lower prices. "In the last five days, the prices of second-hand cars have dropped by 40 to 50 per cent. Businessmen in Delhi are now compelled to sell vehicles at one-fourth of their original price," he said. He said that second-hand cars from Delhi were usually sold in Punjab, Rajasthan, Uttar Pradesh, Bihar, Tamil Nadu, Karnataka and Kerala. However, the demand from outside states was now accompanied by aggressive bargaining. "Luxury used cars that earlier fetched Rs six to seven lakh were now being sold for barely Rs 4 lakh to Rs 5 lakh. “Buyers from other states are aware of the challenges faced by Delhi-based traders and are negotiating accordingly," Goyal said. He further added that over 1,000 traders in areas like Karol Bagh, Preet Vihar, Pitampura, and Moti Nagar were involved in the business of selling second-hand vehicles.

Car dealers have also raised concerns over difficulties in obtaining the No Objection Certificate (NOC) from the Transport Department, which is required to sell used vehicles in other states. Earlier, the process was relatively smooth, but now traders say they were facing delays and complications. The Delhi government had banned fuel for end-of-life vehicles -- 10 years or older for diesel vehicles and 15 years or older for petrol vehicles -- that are deregistered and not allowed to ply on the roads from July 1, following a court order. However, on Thursday, the government requested the Commission for Air Quality Management (CAQM) to put the ban on hold with immediate effect, arguing that the fuel ban on overage vehicles was not feasible due to technological challenges.