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|8th May 2008, 17:23||#1|
Senior - BHPian
Join Date: Apr 2008
Location: Ghaziabad, U. P
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Short Term vs Long Term Ownership, New Car vs Used Car Ownership
I am curious to know about this one.
Some people believe that the moment a car starts demanding a single paisa on anything other than regular servicing, its time to sell it. Or whenever the last EMI gets over. Or whenever the car crosses 30,000 kms. Basically enjoy the car in the "honeymoon" period, then sell it and get a bigger, better car. My boss simply sells his car after 3 years, regardless of condition or mileage covered.
Another group of people beleive in holding on to the vehicle till it literally falls apart.
Some people always buy new cars.
Some people always buy used ones. Obviously as long as there are people changing cars frequently, there will be a group
The question is why are you part of any of the above mentioned four groups? Can you mention the advantages or disadvantsges for choosing any of these?
Thanks in advance!
|8th May 2008, 18:12||#2|
Distinguished - BHPian
Join Date: Dec 2005
Location: Weekdays@Chennai, Weekends@Kerala
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I fall in the following groups :
I hold on to vehicles because I think of the car/bike as more than just an inanimate object - there develops an attachment with it, which prevents you from dumping it. Also, if a vehicle is not giving you any trouble (ie. does not turn unreliable), why sell it ? And since I hold on to cars for a long time, it helps to buy them new in the first place.
So, in a way both my lines of thinking are related.
Disadvantages of buying new :
1. You take a bigger depreciation hit when you sell the car. But then if you hold on for a long time, it does not really matter.
Disadvantages of holding on to old cars :
1. Over time, the reliability goes down and your confidence in the car decreases.
2. You can't keep changing cars - no snob value.
Last edited by supremeBaleno : 8th May 2008 at 18:15.
|8th May 2008, 18:13||#3|
Join Date: Jul 2007
Thanked: 6,662 Times
I needed a car.
I had some money.
I needed to take a loan.
I dont like paying EMI', so wanted less tenure.
I found my low milage Wagon at truevalue.
I am very happy.
I now want a Palio MJD.
I will wait for 2 years.
I wrote everything staring with I.
Last edited by bblost : 8th May 2008 at 18:13. Reason: I
|8th May 2008, 18:24||#4|
Join Date: Jan 2006
Thanked: 45 Times
I have often toyed with the idea of getting a used car and both times I bought a car, I looked at used cars first, but both times I went ahead and bought a new car. Its a lot like my blue jeans. I still buy them pure blue and let them fade as I wear them.
My cars too have to be run in only by me. The gear shift has to develop that glitch that only I can handle while others say - your gear does not slot.
I guess driving is quite an emotional thing for me and I share a bond with my car. So, in spite of being an accountant and having done all the calculations that show me exactly how much I am losing by buying a new car instead of an old car and then buying an unpopular car (Petra which has zilch resale value), I still went ahead and did it not once but twice.
And I sold my 800 since it felt pretty fragile. The Petra is pretty solid and I plan to keep it for years. And it shall not be allowed to fall apart either. It is well looked after and I will try and make people comment on its well maintained looks for years now.
Last edited by prabuddhadg : 8th May 2008 at 18:25.
|8th May 2008, 20:29||#5|
Senior - BHPian
Join Date: Oct 2004
Thanked: 74 Times
Hmm, ver interesting viewpoints. Owned one used - Zen bought at 62k and sold at 85k after 2 years, and then the OHC - new in 2001 and still have it! Also bought a used Pulsar 180 (5k, 1 year old) in 03 and still have it. So I guess I'm a keeper, and do not particularly care about totally new, though am a little wary of buying really old.
The allure of not taking the first years dip in value is huge. However, only if its affordable - as in if one can either judge cars real well, or have access to someone who can reliably do that, does it make sense. That - and the crazy insurance costs these days - for instance I've been thinking of the Safari but the "misc" costs keep the decision pending forever. May be easier with a used car, but how does one ensure a good buy ?
|8th May 2008, 21:06||#6|
Join Date: Jan 2008
Thanked: 74 Times
To me it depends on the attachment with the car and the driving pleasure it gives (good handling, enough performance according to my driving style, etc.)
Have had the Opel Astra for 10 odd years now and am still in 2 minds whether to sell it and buy a new car:(i wont get much for it anyway due to this intangible thing called depreciation even though it's in great condition)
Restore it to brand new condition (its in good condition as it is but a paintjob and perhaps some mechanical work will ensure its back to showroom condition).
I drive it everyday and love the way it looks.
Also love how safe i feel in it (built like a tank nature) even at triple digit speeds (compared to quite a few new cars ive driven which feel like featherweights) and hard cornering is most enjoyable, it handles amazingly. Wouldnt try cornering at the same speeds in most other cars.
I guess the dynamics are due to it's German Engineering roots.
It's also my 1st car and i learnt driving on it so it is high on emotional attachment.
I would say im a keeper if the car really grows on me but also to an extent would mostly like to buy a new car every 6 yrs if emotional attachment permits.
Other than that, im a new car person but have lately been toying with the idea of used cars due to the 1st 2 yrs depreciation hits and instant modification capability for used cars. But im sure when it comes to actually buying, id probably opt for a new car
Why? For the same reasons as mentioned by SupremeBaleno
Disadvantages of having an old car - she requires care and maintainance on a higher level than new cars but if one enjoys these nitty gritty's to an extent, id say its a great way to learn about cars and whats in em. Most of what i know has been learned while taking care of my car and of course BHP. Else, i would hardly know or learn much if i never had to fix anything.
So id say - New Car - (Every 6 yrs - depending on my personal taste and attachment)
Last edited by Xehaust : 8th May 2008 at 21:20.
|8th May 2008, 21:23||#7|
Join Date: Mar 2008
Thanked: 7 Times
The purchase decision i guess is more or less dependent on usage pattern.
People who buy used cars
People who use their car a lot and put it through lot of hardships may feel that a new car is not worth it, they would rather buy a time tested cars. They would probably use is hard for 2-3 years and sell them off.
People who do not use tha car much, but need them for ocassional famility outing will also buy a used car as they feel they are getting a lot for their usage, reliability is not their highest requirement.
People who are not emotionally attached to cars but buy one because they think they need on also but used cars as they feel new cars are useless paying for, they too will own for short periods but use a lot lesser
In general people who have initial cash deficit but do not bother about spending on maintainance will buy a used car.
People who buy new cars
People who go to work every day, generally feel that they need a very reliable car, so would choose a new car.
People who always want the latest in the market would also buy a new car.
People who do not like the feel of old cars or feel odd in others cars will also buy a new car.
After all this buying a car is all a risky decision, new or used. A new car can have some manufacturing defects, in general new car buyers expect a perfect car as they are paying a premium. Used car buyers run the known risk of misued cars, but look at car that just manages fine. New car owners also run a risk of deprication, where some not so big hit models will loose money fast. But used cars generally have a much more stable price, though they too can vary(Bad car = lots of maintainance).
|8th May 2008, 21:58||#8|
Join Date: Oct 2007
Thanked: 131 Times
It also has tax benefit..
The interest on the car loan and the depreciation can be utilized as tax benefit. Hence people might start thinking of selling the car as soon as the EMI gets over.
|8th May 2008, 22:03||#9|
Join Date: Sep 2006
Thanked: 2 Times
I bought my first car Palio 1.6 Sports in 2006 knowing full well that it had a poor resale value. I intended to keep it for a long time. At least 5 years anyway, till the loan would complete. I loved the car and even the horrible experience of after sales support when it took 6 months to get the car repaired, didn't make me regret my decision to buy this Fiat.
Nothing can beat the feeling of owning a new car, no question about that.
Buying a used car for me is definitely a short term arrangement until something better can be had. I would not own a used car for more than 2 years.
Also i feel that spending in excess of 5L for a used car (more than 2 years old) is not on. I would rather go for a new car.
|8th May 2008, 22:20||#10|
Senior - BHPian
Join Date: Apr 2008
Location: Ghaziabad, U. P
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I tried a lot of number crunching before buying my first bike at the age of 25 and my first car at the age of 28. Both times, it made a lot of financial sense to get a second hand and avoid the big loans (I have paid the minimum 15% downpayment in both cases.) But a new car is a new car. Agreed that buying the Palio MJD was a somewhat brave (and unpopular) decision, but I still went ahead and did it.
I am new car person and (perhaps) a long term owner because:
a. I am sure that the car will not breakdown because of harm caused by abuse by someone else. I will not have to change clutch plates prematurely because of somebody else's clutch habits. It would be a breakdown by a manufacturing defect or my bad driving. I will know correctly which parts are due for repair, maintenance and go easy on them.
b. I get to enjoy the wonderful phase when Maintenance Costs are low and Performance is very good (say 10,000 to 40,000 kms)
c. I don't believe in the importance of resale value so much. Resale values are not proportional to the amount of attention you give to your vehicle. E.g. You could easily lose a percentage of resale value for a dent caused by someone else but could easily pass off a more serious mechanical problem caused by your reckless driving which has probably done more damage. You get no extra money for having patiently and painfully run-in the vehicle when you wanted to rip it. And I am yet to see too many used car buyers who will ask for a service history or will trust me when I show them that I have meticulously kept track of every paise spent on my vehicle.
|9th May 2008, 11:39||#11|
Join Date: Nov 2006
Thanked: 3,476 Times
I have been fortunate of being able to own new vehicles, both with respect to my bike, as well as my car. Regarding the bike, second hand was never even considered.
When i was thinking of buying a car, i initially did dabble with the thoughts of getting a second hand Scorpio, but based on advice from friends and family finally decided to go for a new car, to avoid any maintenance costs which could creep up from a pre-owned vehicle.
I share most of views which SB has expressed.
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