Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 18th June 2012, 12:31   #1
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,750
Thanked: 89,413 Times
Default An upside to the petrol price hike : Used car residuals CRASH

Name:  P1080989 Medium.JPG
Views: 18908
Size:  57.9 KB

They say every cloud has a silver lining. Well, that's certainly the case for those in the market buying a used petrol car. After this development, prices of used petrol cars - across ALL SEGMENTS - have tanked. Another contributing factor is the massive discounting on new petrol cars from manufacturers & dealers.

While cheaper models have seen adjustments of 10 - 15%, there are plentiful cars that have lost 20 - 25% of their value overnight. 2006 - 2008 Alto, Spark & Santro prices are now about 30,000 (even 40,000 in some cases) lower than the levels of April 2012, while that for the petrol Swift is 40,000 - 50,000. Late model Getz' & Aveos are yours for throwaway prices. Well-maintained 2008 i10s are changing hands for under 2 lakhs (that's less money than a new Nano!). Spend 50K more and you can get yourself a petrol Verna of the same vintage ('08 Hyundai Verna = Rs. 2.5 lakh). Amazing Optras for a mere 1 - 1.5 lakh rupees & pristine Cedias for Rs. 2.5 - 3.0 lakhs gather dust in dealer lots. I've seen good Civics for 4 lakhs, Altis for 5.25 and 2007 - 2008 Accords trading at a mere 5.5 - 6.5 lakh in Mumbai. Live to drive? How about a 3 year old Laura 1.8 TSI for less money than a new Hyundai i20 Asta? Fatter wallet? For between 10 - 18 lakhs, you have the widest choice of C Class, E-Class and 3 series (325i 6-cylinder for 12 lakhs). A low mileage E60 BMW 525i for 17 lakhs makes my mouth water.

It's an absolute buyer's market out there. Thus, if your running isn't much and / or you prefer petrol, there's never been a better time to go out shopping. Even after the price drop, there are few takers for used petrol cars, especially models from the D1 (Altis, Civic, Laura) and D2 segments (Superb, Accord, Teana etc.). Bargain hard.

Suggested Reads:

Article 1 (ARTICLE: How to buy a *USED* Car in India)

Article 2 (ARTICLE: Buying a New Car vs Used Car)

Article 3 (ARTICLE: The Beauty of Lateral Upgrades (Getting MORE CAR for LESS $$$))

Last edited by GTO : 18th June 2012 at 13:52.
GTO is offline   (14) Thanks Reply With Quote
Old 18th June 2012, 13:08   #2
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,750
Thanked: 89,413 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene
GTO is offline   Reply With Quote
Old 18th June 2012, 13:14   #3
Senior - BHPian
 
carwatcher's Avatar
 
Join Date: Feb 2010
Location: Bardez, Goa
Posts: 1,185
Thanked: 999 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Just posted this one hour prior to this thread.
http://www.team-bhp.com/forum/indian...ml#post2812194
I believe this can be correlated to Herd mentality at its best.
To make matters worse I have a Ford Fusion + which I am looking to sell since past 2-3 months without success.
I have seen personally a Corolla at Rs.3.5 Lac lying since last 3-4 months with absolutely no buyers.
I feel the Fiat customers will be the ones that are badly affected.
IMHO it makes sense to buy a used Petrol car at dirt cheap price and run it on Gas kit. Killer combination.

PS : Requesting to start a new thread on "Is it worth buying a New car considering the horrible experience meted out at Dealership of almost all the manufacturers"

Last edited by carwatcher : 18th June 2012 at 13:26.
carwatcher is offline   (2) Thanks Reply With Quote
Old 18th June 2012, 13:18   #4
Senior - BHPian
 
Blue Thunder's Avatar
 
Join Date: Jul 2007
Location: Right here .
Posts: 1,632
Thanked: 330 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

So true, especially considering petrol AT cars...I have seen some well-maintained Corollas and Corolla Altis going at mouth-watering prices.

Last edited by Blue Thunder : 18th June 2012 at 13:19.
Blue Thunder is offline   (1) Thanks Reply With Quote
Old 18th June 2012, 13:18   #5
BHPian
 
iceman7's Avatar
 
Join Date: Apr 2008
Location: Mumbai
Posts: 706
Thanked: 257 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

This is exactly what I was discussing with a friend yesterday. But from the other side of the fence though. My friend has a 2010 SX4 with very low mileage on the ODO. He is devastated looking at the resale prices being offered. That too for a Maruti. I cannot imagine what value's the European Petrols will fetch.

On the flip side, a superb time for anyone looking for a steal. 3.0 lakhs for a Cedia did I hear

Last edited by iceman7 : 18th June 2012 at 13:20.
iceman7 is offline   (1) Thanks Reply With Quote
Old 18th June 2012, 13:20   #6
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,700
Thanked: 2,119 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

A buyers market indeed for petrolheads. Though I do wonder what will happen when there is any decision on the diesel tax or increase in diesel prices. There are already discounts being floated on diesel cars too and SAs are pushing prospects for confirming sales.

A colleague's booking for a Swift diesel has been cut from months into days, regardless of the non silver/ white colour. So has the booking list been manipulated all this while?

Also, it would be interesting to see if the resale prices tank a bit further if there is low buyers demand and if global crude prices start rising, pushing up petrol prices towards the 100 rupee mark.

For now, my wallet stays in my pocket. I already have two petrols! Though I might consider exchanging one at some time

Last edited by selfdrive : 18th June 2012 at 13:23.
selfdrive is offline   (1) Thanks Reply With Quote
Old 18th June 2012, 13:36   #7
Senior - BHPian
 
iTNerd's Avatar
 
Join Date: Apr 2007
Location: Imphal/Noida
Posts: 1,069
Thanked: 500 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

When I was hunting for a used GV (just before the Rs. 7.50 petrol hike) and stumbled upon a very well maintained, just 33K Kms done, 2008 GV. And the asking price was 8.5 L. I offered him 7 lacs, but the owner didn't accept it, saying he expected at least 8. Now after a week after the petrol hike, I got a call from the broker, that the owner is ready to offer at 7L. But by that time, I had already decided to go for a diesel car because of insistence from my friends and relatives on not to own 2 petrol cars. I must say, the owner, especially for a petrol SUV, and which is also a market dud, would have a very hard time disposing the vehicle.

Last edited by iTNerd : 18th June 2012 at 13:41.
iTNerd is offline   (2) Thanks Reply With Quote
Old 18th June 2012, 15:14   #8
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,750
Thanked: 89,413 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by iceman7 View Post
But from the other side of the fence though. My friend has a 2010 SX4 with very low mileage on the ODO. He is devastated looking at the resale prices being offered.
This is an incredibly bad time to be selling petrol cars. Ideally, your friend would use the SX4 for another couple of years.

Quote:
Originally Posted by selfdrive View Post
Though I do wonder what will happen when there is any decision on the diesel tax or increase in diesel prices.
Historically, once the prices of petrol cars have fallen, they never ever recover.

Quote:
There are already discounts being floated on diesel cars too and SAs are pushing prospects for confirming sales.
That's because of inventories piling up at the manufacturer & dealer ends. Maruti is sitting on nearly 100,000 unsold cars, Tata over 40,000 etc. No one is buying in today's market.
GTO is offline   Reply With Quote
Old 18th June 2012, 15:38   #9
F50
Senior - BHPian
 
F50's Avatar
 
Join Date: Mar 2004
Location: Mumbai/USA
Posts: 1,694
Thanked: 91 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by selfdrive View Post

A colleague's booking for a Swift diesel has been cut from months into days, regardless of the non silver/ white colour. So has the booking list been manipulated all this while?
The reason for this is slowdown in diesel car sales. End of May saw 1.07 lakh units of unsold diesel and 1.93 lakh of unsold petrol cars. The feared slam of taxes for owning a diesel car and hair-growing speed at which prices of petrol rise has left auto industry to submit these figures to Finance Ministry.

Tata leads the unsold inventory list followed by Mahindra & Mahindra and M.Suzuki. Check the Indian Car Sales and Analysis Thread for May 2012. May grew at a dismal rate.

This may be good news for used car market but the future of Indian Auto Industry is bad.
F50 is offline   Reply With Quote
Old 18th June 2012, 15:47   #10
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,700
Thanked: 2,119 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by F50 View Post
Tata leads the unsold inventory list followed by Mahindra & Mahindra and M.Suzuki. Check the Indian Car Sales and Analysis Thread for May 2012. May grew at a dismal rate.
Well, there are only so many cars that can be added to our roads.
Makes me wonder how car sales would be affected when (if?) mass transit infrastructure is built in our cities.

I hope the daily usage pattern changes at least.

I think the manufacturers in the Indian auto industry also need to face the fact that while their slice of cake is now reduced due to competition, the size of the overall cake itself may stagnate and even reduce on an ongoing basis due to fuel and other factors.

After all, our used cars (or bikes for that matter) dont go to the scrapyard so soon. They keep getting passed down the value chain till they are eitehr unusable or downright unaffordable to maintain.

Last edited by selfdrive : 18th June 2012 at 15:49.
selfdrive is offline   (1) Thanks Reply With Quote
Old 18th June 2012, 16:01   #11
Senior - BHPian
 
Join Date: Apr 2010
Location: EU - Nordic
Posts: 1,563
Thanked: 953 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Is this a Mumbai-only phenomenon? I mean, this crash in prices. Although it's quite possible that petrol cars have lost a few 1000s in resale value due to the recent hikes, I don't think the drop in value is very steep here in Cochin. My father has been offered Rs.1.95L for his 2006 Wagon-R - that too by the Maruti dealership in exchange for a new car. I'm sure an individual buyer would pay 5-10K extra. I think that's still a good price.
StarrySky is online now   Reply With Quote
Old 18th June 2012, 16:11   #12
BHPian
 
Join Date: Aug 2010
Location: Bangalore
Posts: 946
Thanked: 295 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

This could well be a short lived one, it will be even worse I mean to say, considering the diesel subsidy tax hanging over the market, it could fall anytime, if that happens the market sentiment will be zero sales new or old. The extra Tax may not be as much as the FM has suggested but could well be at least 60% of that, in such conditions even new diesel car sales will slow down, the only flip side is that used diesel cars will gain considerable value over night. And have no clue what will happen to our beloved petrol cars in the D1 & D2 segments, to say the least I am one of the sufferers.
zulfi hansi is offline   Reply With Quote
Old 18th June 2012, 16:13   #13
BHPian
 
Abhi_abarth's Avatar
 
Join Date: May 2012
Location: Hyderabad
Posts: 331
Thanked: 113 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

Quote:
Originally Posted by iceman7 View Post

On the flip side, a superb time for anyone looking for a steal. 3.0 lakhs for a Cedia did I hear
Did I read it right ?? Cedias between 2.5 to 3 lakh !!! I have already started my hunt for a good Cedia and this cannot be a better time for it. For me a Cedia makes lot of sense as my monthly usage will be < 500 kms and driving pleasure takes first seat. What else would one want ? driving pleasure with sheer value for money.

If it wasn't the hike, a petrol head like me would have ended up buying an alto k10 or a beat D thus supressing my desire of owing a Mitsubishi Cedia

Cheers,
Abhi
Abhi_abarth is online now   Reply With Quote
Old 18th June 2012, 16:20   #14
BANNED
 
Join Date: Aug 2010
Location: Mumbai
Posts: 186
Thanked: 135 Times
Infractions: 0/1 (5)
Default Re: An upside to the petrol price hike : Used car residuals CRASH

I was also thinking on the same line.
Consider if somebody is planning to buy a car, there are 2 options,
Loaded diesel hatch/sedan(entry level) for 6-8 lac.
Pre owned petrol sedan for 4-6 lac.
In second option, almost 2 lac is saved and one can get a better car to drive.
Also, according to me, compromise on peace of mind is not much. e.g. what is more reliable in long term? a new hatch or 20k km driven and properly maintained Honda.
Vishal.R is offline   Reply With Quote
Old 18th June 2012, 16:23   #15
BHPian
 
Speed-Freak's Avatar
 
Join Date: Sep 2006
Location: Navi Mumbai
Posts: 143
Thanked: 67 Times
Default Re: An upside to the petrol price hike : Used car residuals CRASH

I remember about a year and a half back, i had people coming and asking me to sell my 2000 model Old Honda City 1.5exi, my asking price was then 3L and i got offers of 2.75L when i dint budge. Now i have been trying to sell my ride for 1.75L and i do not have buyers for it.

I also happened to find a E250 CDI-2008 model which had done 55k kms for a little above 13L without any negotiations.

The market is flooded with great deals and as GTO pointed out the Germans are way too tempting to resist.
Speed-Freak is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Petrol Price Hike. EDIT - 15th July 2013 -- Hiked by Rs. 1.55/- madnish30 The Indian Car Scene 469 14th August 2014 12:17
Ridiculous! Waiting in a petrol pump queue on the eve of a price hike GTO The Indian Car Scene 189 29th June 2012 17:25
Upside down 6*9 speakers? RAC In-Car Entertainment 26 29th March 2009 11:37


All times are GMT +5.5. The time now is 12:01.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks