Car Dekho | Shark Tank judge Amit Jain’s ‘Car Dekho’ to shut down, despite profits, loss of crores
File Photo Mumbai: Amit Jain’s Car Dekho has decided to stop selling used cars due to a loss of Rs 30,000 despite making a profit of Rs 50,000 on each car. Car Dekho forayed into the second hand car market 30 months ago. Car Dekho Three companies had a major share of the second hand car market in India. Car Dekho Group has now stopped retailing of second hand cars. Unicorn startup Car Dekho has decided to stop selling second hand cars. Car Dekho has taken this decision at a time when retail sales of pre-owned cars are growing faster than sales of new cars. For the last 4 years, the retail sale of second hand cars is increasing rapidly. Had entered the second hand car market 30 months back Amit Jain’s Car Dekho had entered the second hand car market 30 months ago. Now he has decided to exit this business. Car Dekho founder Amit Jain himself has shared some stories. Car Dekho used to buy cars for an average of 5 lakhs, sold them to customers for 5.5 lakhs in 3 months. Car Dekho was getting an average of 50 thousand per car. In this, he had to spend Rs 25,000 for car renewal, around Rs 15,000 as interest, Rs 7500 for parking and Rs 6,000 as RTO charges. Read this also Additional cost for second hand cars Along with this, there are many other expenses associated with the second hand car business. 8000 per car in terms of manpower, sales and security. Around Rs 15,000 per car as management or technology cost and Rs 3,000 per car for fuel and driver. This means that Amit Jain’s Car Dekho incurred a loss of Rs 30,000 on the sale of second hand cars alone. Amit Jain had invested Rs 205 crore to set up the company. But now he is facing a loss of 6.8 crores every month. So now the company has closed its second hand car business and has tried to make up for the monthly loss of Rs 7 crore.