Bang for the buck, a used Palio 1.6 gives the Vtec as well as most other cars a run for their money. Where the Palio is better is in terms of build quality (tank!) and high speed stability. But the Vtec will rule in terms of sheer engine prowess, long-term reliability and resale value.
You can't go wrong with either car. In the end, it depends on whether you want to spend 2.xx lacs or 4 - 5 lacs.
Congratulations on the S10!
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