The second-hand car market in Jharkhand is suddenly booming.

The boom is being driven by financial institutions which were offering cheap loans for second-hand car purchases. More than a dozen dealers in Ranchi are doing brisk business.

Dealers in the district headquarters in Jharkhand state have also reported rising sales. Ranchi and Dhanbad were the main second-hand car markets.

One of the dealers in Ranchi said buyers belonged to the middle class taking advantage of low prices and cheap loans. Some financiers in Ranchi were offering loans of up to Rs 50,000 for cars up to eight years old.

Demand was highest for Maruti 800, Hyundai Santro and Maruti vans. Maruti 800 cars built in 1996 were selling at Rs 90,000-95,000. Maruti Esteems were going at Rs 1,25,000.

The sellers were affluent citizens exchanging used cars to dealers to buy new ones. The allowed middle class buyers to acquire good second-hand cars at low prices, said one dealer.

A large number of second-hand cars were brought in from West Bengal and Delhi. Dealers were however careful to avoid stolen cars with damaged engine and chassis number plates. Some persons had been booked by the police for dealing in stolen cars recently, said one dealer.