KATHMANDU: The used car market in the Valley has slowed down significantly, with sellers increasing but buyers declining.
Reconditioned houses are currently filled with vehicles, but demand remains weak. More than four dozen used car dealers are operating in the Valley, and most have invested heavily in stock. However, sales have dropped due to low buyer interest.
Dealers say rising fuel prices have directly impacted demand. “Vehicles are piling up in reconditioned houses. It has become difficult to find buyers,” said a Naxal-based trader.
According to Shailendra Shrestha, operator of Kathmandu Automobiles, the shift towards electric vehicles has further reduced demand for fuel-powered cars. Consumers are increasingly choosing EVs to avoid rising daily fuel expenses.
The decline is more visible in premium SUVs such as Mitsubishi Pajero, Jeep Compass, Ford Endeavour, and Toyota Fortuner. Dealers report that buyers for these high-value vehicles are now rare.
Sellers say premium used vehicles are difficult to sell through showrooms. Transactions mostly happen privately between individuals, if at all.
Small cars are also affected. Earlier, such vehicles would sell within one or two days. Now, they remain unsold for months despite price cuts.
Sachin Kuinkel, operator of Shreya Automobiles, said buyers prefer affordable EVs over used cars. “Consumers are choosing EVs because they reduce immediate out-of-pocket costs and are easier to use,” he said. He added that the Middle East conflict has also impacted the market. Many dealers are now in a “wait and watch” position.
Dealers say the monthly fuel cost of petrol vehicles is now comparable to EV loan installments. This shift has further weakened the used car market.
