organised used car business in India- illogical.

I recently visited the maruti true value store as well as the hyundai authorised used car showroom.

what i have understood is that buying a used car from these people are no big bargain as the prices difference between a new car and 4 yr old used car is just Rs20,000.

so i cannot understand what logic to apply here,

instead of paying twenty thousand less for a used car might as well buy a new car.

how illogical can this organised used business be in India.