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Old 7th November 2006, 08:54   #1
BWN
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Hi Everyone,

Found this article in http://www.rediff.com/money/2006/nov/07bs2.htm

"India's fascination with new cars has led to a bonanza in the second-hand market. Prices have crashed by 40 per cent from two years ago, and one in four used cars sold in India is a foreign make, up from one in 10 in 2004.
A three-year-old BMW Series 3 sells for Rs 8 lakh (Rs 27-30 lakh new), an Audi A4 for Rs 12-14 lakh (Rs 40 lakh) and a Porsche 911 for Rs 14-15 lakh (Rs 45 lakh).
Around 40 per cent of the 500,000 used cars sold every year are sedans. A two-year-old Toyota Corolla sells for Rs 4.5-5 lakh (Rs 9 lakh new), a Honda City for Rs 3.5 lakh (Rs 7 lakh) and a Hyundai Accent for Rs 3.25-4.5 lakh (Rs 5.5-7 lakh). Ford Ikons are going for Rs 2 lakh, almost the same price as a new Maruti 800. A Baleno costs Rs 2.5 lakh, less than half that of a new one.
Sachin Khandelwal, head, automobile finance, ICICI Bank, said the migration of second-hand cars to the upper segment was more evident in the top 40 cities in the country, where most of the big cars command a good market.
He pointed out that the surge in second-hand car sales was despite a much higher interest component on loans of around 15-16 per cent, compared with 8-9 per cent for new cars.
"There are ready buyers for all big cars in the replacement market. The rich are offloading their cars at shorter intervals, which are immediately being grabbed by the growing tribe of executives and self-employed professional in the cities."

I wonder wheather the rates mentioned for baleno or corolla would be correct. If so, then it makes a lot of sense to go for a 2 year corolla than a new fiesta or any mid sizer. Folks, how far this article is reflecting the reality ?
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Old 7th November 2006, 14:18   #2
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This report comes at a really good time... that is, just when other reports are coming in about how 1st hand cars are going to be dearer by 3%!!!

http://www.team-bhp.com/forum/indian...-costlier.html (Cars to become costlier)

At this rate, more than double the number of 2nd hand cars will be bought as compared to 1st hand! Me thinks me need to go 2nd hand prosche shopping now!


Godspeed,

Alok
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Old 7th November 2006, 14:42   #3
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Quote:
Originally Posted by BWN
A three-year-old BMW Series 3 sells for Rs 8 lakh (Rs 27-30 lakh new), an Audi A4 for Rs 12-14 lakh (Rs 40 lakh) and a Porsche 911 for Rs 14-15 lakh (Rs 45 lakh).
i seriously doubt that. Dealers and brokers make most of the money in this market. The consumer, as always, has to pay for it.
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Old 7th November 2006, 16:30   #4
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Quote:
Originally Posted by BWN
Hi Everyone,

A three-year-old BMW Series 3 sells for Rs 8 lakh (Rs 27-30 lakh new), an Audi A4 for Rs 12-14 lakh (Rs 40 lakh) and a Porsche 911 for Rs 14-15 lakh (Rs 45 lakh)."

I am quite certain that its a case of bad reporting.
Dont know about the other cars but a 2 year old Corolla is definitely not available for 4 L !
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Old 7th November 2006, 16:36   #5
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About a year back, a colleague had bought an Automatic Corolla 2004 for 9 lacs. Does that mean it will now cost half of that? I don't believe that.
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Old 7th November 2006, 19:38   #6
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A three-year-old BMW Series 3 sells for Rs 8 lakh (Rs 27-30 lakh new), an Audi A4 for Rs 12-14 lakh (Rs 40 lakh) and a Porsche 911 for Rs 14-15 lakh (Rs 45 lakh).

A 3 year BMW would be for 8 lacs...hmm...that is would be just fantastic !!!. I saw an 12 year old BMW 316 for 4.5lacs...so definitely something wrong about this article.
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Old 7th November 2006, 20:24   #7
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Business standard motoring has completely lost it now I feel,should they not have atleast checked before making such tall claims.
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Old 16th August 2011, 09:52   #8
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Default Re: Flourishing Second hand car market

"India's used car market, which has so far faithfully followed new car sales, is now all set to zoom ahead as a sentiment slowdown hits car sales in autoville. According to industry estimates, the used car market, which is currently around 18 lakh units a year, is expected to clock anywhere between 20% and 25% growth in the next five years, vrooming beyond the 40-lakh mark by 2015. Of this, the organized sector is likely to clock a 35-40% growth"

Cheers!

Used car sales to zip past new ones - The Economic Times
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