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Old 25th June 2012, 01:00   #91
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Post Re: An upside to the petrol price hike : Used car residuals CRASH

Mods, Please move my post if not irrelevant or OT.

My question: Will the recent drop in Petrol vehicle's prices have effect on the IDV, when we go for a renewal of our car policy? If so, I presume it will be a highly depreciated value and hence isn't it good, considering that we usually check for a high IDV value when we get the quotes.
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Old 25th June 2012, 10:43   #92
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Most Car manufacturers appear to cut down on advertising in the print media. Sure sign of recession.
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Old 25th June 2012, 16:02   #93
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Just this past week I spotted a Mercedes C class petrol, 2008 model going for around 11 lacs at a used car showroom! That's honda city (new) territory! At another place, there was a 1-year old Laura TSI for sale for ~9L! Mitsubishi Cedias are going for around 4L, with the current HM-Mitsubishi situation adding fuel to the fire. Palio GTXs are even entering 5 digits, good heavens! If someone is looking to buy an enthusiast machine for low-running, there couldn't be a better time than now.

Quote:
Originally Posted by Arunshek View Post
Mods, Please move my post if not irrelevant or OT.

My question: Will the recent drop in Petrol vehicle's prices have effect on the IDV, when we go for a renewal of our car policy? If so, I presume it will be a highly depreciated value and hence isn't it good, considering that we usually check for a high IDV value when we get the quotes.
Renewals will follow a formula of some specific % of depreciation of your car's IDV value. IDV starts from ex-showroom price at delivery time, and from then on it is usually 10% depreciation after every year of the vehicle's age. IDV won't be affected by the petrol price hike in any manner.

You'll find lots of relevant threads in the car loans/insurance section of this forum where you can post any other insurance-related queries.

Indian Car Loans & Insurance - Team-BHP

Last edited by KarthikK : 25th June 2012 at 16:21.
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Old 25th June 2012, 19:23   #94
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Post deleted by the Team-BHP Support : Please do NOT post one-liners that add little or no informational value to the thread. We need your co-operation to maintain the overall quality of this forum.

Please read our rules before proceeding any further.

Last edited by GTO : 27th June 2012 at 13:39.
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Old 25th June 2012, 19:42   #95
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

One of my colleagues is buying a diesel car, so had been with him for TDs etc. Now when we went for his car loan to SBI, there was a pile of loan applications, all for diesel cars. Word is out that there is going to be some serious hike in diesel car prices after June 30. And everyone and their uncle is buying a diesel car before the excise hike or tax hike or whatever it is.

Just thought it is relevant to tell you diesel car owners to hold on if you are selling your car. You may benefit more considering new car prices would go up!

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Originally Posted by shankar.balan View Post
At 2.5 you will get an octy which you can give away to some nephew or something a year or two down the line.
Are you looking to adopt a nephew? I am looking to adopt an uncle. Age no bar, I dont really mind even if you are younger than me

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Originally Posted by man_and_machine View Post
What do you guys think on the Maruthi True value cars, especially the Alto? Wifey wanted a small car and I was looking at the Nano. Was wondering if the true value prices are also affected, it might be a good buy if I can get a good Alto at the Nano price. Reasons for the thought, wifey did not like something with no power steering and disc brakes!
The prices of a used Nano drop like a hot potato. Just today, I saw a valuator guy at Pandit Auto quote someone 70K for his year old Nano. Why dont you try to buy a preowned Nano around 1L?
If you really want an Alto that is totally useless advice.
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Old 25th June 2012, 20:02   #96
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BHPians from Chennai, does anyone know of any established used car dealer here who is trying to sell petrol cars at current market prices?

I guess these dealers would try to sell off even sales duds for as much as possible irrespective of whether the overall market for petrols is down or not. However, if they start with a reasonable quote for a second-hand petrol car (that's fun-to-drive and reliable with acceptable maintenance costs) which can be further reduced through negotiation, I'll seriously consider the cars on offer. This seems to be the right time to buy used petrol driver's cars at mouth watering prices!

Quote:
Originally Posted by esteem_lover

That is something I did not know of and must be really good too. Cedias for 2.5 L ? Cedia, here I come !!
Please let me know if you've had any success. A thoroughbred Mitsubishi Cedia for 2.5 lacs almost sounds too good to be true.
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Old 25th June 2012, 20:10   #97
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Quote:
Originally Posted by selfdrive
One of my colleagues is buying a diesel car, so had been with him for TDs etc. Now when we went for his car loan to SBI, there was a pile of loan applications, all for diesel cars. Word is out that there is going to be some serious hike in diesel car prices after June 30. And everyone and their uncle is buying a diesel car before the excise hike or tax hike or whatever it is.

Just thought it is relevant to tell you diesel car owners to hold on if you are selling your car. You may benefit more considering new car prices would go up!

Are you looking to adopt a nephew? I am looking to adopt an uncle. Age no bar, I dont really mind even if you are younger than me

The prices of a used Nano drop like a hot potato. Just today, I saw a valuator guy at Pandit Auto quote someone 70K for his year old Nano. Why dont you try to buy a preowned Nano around 1L?
If you really want an Alto that is totally useless advice.
Ha ha! Well frankly I dont mind getting adopted even now at this late stage. Provided I am allowed to retain all my passions, cars, golf, dogs, flying and travel. Work doesnt enter into it at all as you can see. Cheers!
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Old 26th June 2012, 10:16   #98
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by man_and_machine View Post
What do you guys think on the Maruthi True value cars, especially the Alto? Wifey wanted a small car and I was looking at the Nano. Was wondering if the true value prices are also affected, it might be a good buy if I can get a good Alto at the Nano price. Reasons for the thought, wifey did not like something with no power steering and disc brakes!
All 3 of my cars were bought from Bimal True Value (Near KR Puram on ORR). The prices are definitely higher than what you normally see outside. And I dont think they would voluntarily reduce the price. But potentially there would be good scope for bargaining. The have all their cars listed on the website with price. They have a big collection of Alto's. So if you are really interested in an Alto, no harm making a visit.

Used Maruti Cars Bangalore, Maruti Second Hand Cars and Used Maruti Car Price

and the actual price they quote when you go there is generally 10-15000 less than what they show in the website. I dealt with a person named Ravi (Now he is Sales Lead). Nice chap.
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Old 26th June 2012, 11:06   #99
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Even our very own T-bhp classifieds has some people selling 1,2 or sometimes cars which are less that than a year old.
My question is is that 7 rupee increase in petrol worth the 1 lac plus(sometimes more) loss in depreciation on your literally brand new car ?

Last edited by bblost : 26th June 2012 at 12:18. Reason: Rephrased a sentence as it sounded quite rude.
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Old 26th June 2012, 11:39   #100
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

The best bet is to pick up a nice petrol car at dirt cheap price and then install CNG. You have best of both worlds at a fraction of the cost.
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Old 26th June 2012, 20:09   #101
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Visiting the forum after ages, boy, good to be here
I'd posted a thread on Petrol/ Diesel comparison with an excel last year on the merits of diesel car purchase when the petrol prices were hiked big by Rs 5/- to Rs 65/- per L. There was a lot of debate and mara-mari on the topic then, but the market has spoken now, and how! Why I mention that thread is that, after working those numbers I never thought I'd buy another petrol car in the present scenario. But sometimes you just get pleasantly surprised. The prices of new petrol cars tank, followed by those of used petrol cars and then there is a premium on diesel cars. The net effect is that, the hike in petrol prices is being adjusted by the market, reflecting in (purchase + ownership) costs, but only so much.
So if one is out to buy a car and not bent on a new car and don't run more than 700 km a month (this is a hunch, need to work an excel to prove the numbers), there is nothing better than a used petrol car right now (and well, the pleasure of that 6000 rpm vrroom).
The used car market is a buyer's delight right now, so many toys at such fabulous discounts Not just empty words, I sold my rickety ol' Esteem in April and got an SX4, ZXI (parking sensors installed aftermarket) of 2007, 40K run, in superb condition for 3.5 L. This included the registration and insurance transfer (valid till August). A used C segment diesel in worse condition and mileage would have set me back by at least a Lakh more. While one pays the premium of 1-1.5 L on 7-8 L for a new diesel, it is not worth when it is 3.5 L for a petrol car and 4.5 - 5L for a diesel car. A simple pencilwork here: I run about 500 km a month right now. It costs me 5-6 Rs/km. If I had a diesel, it would cost me 2.5-3 Rs/km. So I pay 2.5-3 Rs/km more for every km run on petrol. Therefore it costs me 15K - 18K more every year (500 x 2.5 x 12 = 15000 and 500 x 3 x 12). At an extreme, it may cost me 4 Rs/km more which gives 500 x 4 x 12 = 24 K more for running a petrol car every year. The extreme case is unlikely but still means that I won't feel the pinch for minimum of 4 years. If you intend to keep your car for only that long, it's an excellent buying opportunity now, taking into account only fuel price. There are a lot of other factors driving a purchase decision but right now, a used petrol car has a very compelling case.

Last edited by Delta Wing : 26th June 2012 at 20:23. Reason: typo
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Old 27th June 2012, 09:31   #102
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Isn't the title slightly biased on a buyer perspective?
Can the scenario in which the value of any asset nose dive, be considered in a positive manner, even if that might be beneficial to a subset of people?
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Old 27th June 2012, 13:02   #103
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

According to a news channel today - close to 2 lakh unsold petrol vehicles as of May & over 1 lakh for diesel vehicles.

The views on the forum do not reflect the implications of the fortunes of the automobile industry which is a primary driver of any developed economy like ours. The fallout of the weaking auto sector in India has very serious implications, which extend beyond the cost of used automobiles. If the earning capacity of automobile buyers and users are reducing, then irrespective of the price of fuel, demand will drop. The converse of this has been observed in the past 20 years when rising fuel prices has not reduced the growth rate of the sector.

Another few factors which are resulting in slow down in demand:
1. In metro's like Delhi, the MRT system has resulted many automobile owners migrate to the more cost effective metro.

2. Lack of parking spaces and consequent issues has reduced the demand from multiple automobile ownership dwelling units.

3. The drop in economic activity has led to reduction in discretionary spending

While the automobile enthusiast would focus on the immediate affordability of desirable cars & bikes, the larger issue would be the ability to maintain these cars. I had a petrolhead friend who in 2003 bought a used Merc (1997) at a 'bargain' price and ended up reselling it within a year, after getting the service bill.

The drop in used car prices also indicate the 'commoditization' of the auto sector wherein the affordibility of new vehicles is higher and hence demand for used cars is lesser.
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Old 27th June 2012, 13:42   #104
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Mod Note : This is NOT a used car price check thread. For all your What car? queries & price checks, please post here instead
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Old 27th June 2012, 13:47   #105
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Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by sarathlal View Post
Isn't the title slightly biased on a buyer perspective?
Can the scenario in which the value of any asset nose dive, be considered in a positive manner, even if that might be beneficial to a subset of people?
As an owner of two petrol cars (and no diesel mills) I fully agree with your statement. Especially as I am going to buy another petrol car anytime soon. And its definitely pointless to be selling a petrol car now.
In that sense, its more buyer biased definitely.

How would we change that though?
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