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Old 26th February 2011, 12:42   #361
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

Its simple logic for me. Have two cars at home. Both coming through company lease (One lease at a time). With a 3 year lease period, one car has to be with me for 6 years minimum before I change to start a new lease.

Any more than 6 is added benefit.
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Old 2nd March 2011, 17:55   #362
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

We own a 2007 Maruti wagonr lxi clocked around 32000 KM. Ever since we bought ANHC; wagonr’s running is reduced to around 500 KM per month. Sometimes we felt that we should get a new swift but after reading this thread i am looking to keep her for some more years. The car's exterior looks glossy, one of my friends was shocked to know that this is three and a half year old car; he thought it’s just six month old.

What you say guys? How long a wagonr can survive? After reading this thread i am planning to keep her till she completes at least 50,000 KM.
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Old 14th March 2011, 17:11   #363
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

Need the guru's help.
My situation: Currently own 2 cars, a) 1.2 Palio & (b) Maruti 800, both are 2006 models, covered 50k & 35k resp. Cars are completely paid for, no EMI's. I use the 800 for weekend chores, & my wife uses the Palio to work daily (she has her reasons).
Both cars are trouble free, but miss a bigger engine on our highway runs to Kolhapur & Goa, which are once in 4months.
We test drove the Fabia 1.6 & loved the way the vehicle is put together. It checks all my requirements, no nonsense build & functionality, space, minimal gadgets, high on safety etc, etc. But the only thing that is stopping me is the EMI's for the next 5yrs.
I got the Palio evaluated for 1.20lakhs, which can be used as a initial payment, my loan will work out to 5.30lakhs for 5yrs with a monthly EMI of rs.11,490 for 5yrs.
Now if I dedicate the same amount to savings for 5yrs, I can effectively yield approx 12-13lakhs in 5yrs.
My dilemma, I am not comfortable with the power delivery of the 1.2 Palio anymore, also the spares are not as issue, atleast as of now. The 800 I cannot sell, due to sentimental values attached to it. My head does not compute the 11k+ EMI for 5yrs as opposed to the savings potential.
Please put me out of my misery guys!!!!! I really want to buy the Fabia, but getting into the commitment of another EMI doesn't make sense.
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Old 14th March 2011, 17:55   #364
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

GTO,

Fantastic information, great comparisons. We all knew we lose money when we add another set of wheels to the garage. How much money we lose is the question? This has been very well illustrated by you at the beginning of the thread.

It becomes difficult to part with an existing vehicle due to the emotional bonds we have formed over the years and the good times shared with the car. So we keep squeezing more cars into our garages. Which means more space, more cost of maintenance, more headaches etc.

More often than not it is a desire to own something new on wheels, or maybe peer pressure from colleagues and other enthusiasts etc. which leads one to get a new car. Rarely we buy a car when the previous one is on the verge of being junked.

I read in a financial article that it may be the case that the reason for your financial problems may be parked in your driveway.

Good thread I have come across at a time I was seriously considering buying another car and am eagerly awaiting the new Fiesta as a replacement to my nearly 5 year old diesel Fiesta

Last edited by Sugeeta : 14th March 2011 at 17:56.
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Old 15th March 2011, 06:49   #365
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by mb_jg View Post
Need the guru's help.

but miss a bigger engine on our highway runs to Kolhapur & Goa, which are once in 4months.
Hi, I am no guru. But If I were in your shoes I would be on the lookout for low mileage pre-owned Fiesta 1.6(2005 onwards) which would cost upwards of 2.3 lakh. Give the search enough time and I am sure you would come across a nice bargain. The fiesta is a fantastic car to drive.
My cousin got himself a 2006 1.6 SXi ABS run just 19000 kms for 2.8 lakhs in Cochin. Which I feel is fantastic value for money.
Adding just about a lakh to your Palio to upgrade to a powerful sedan is a sensible bet.

Last edited by sureshkishore : 15th March 2011 at 06:50.
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Old 15th March 2011, 11:39   #366
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by sureshkishore View Post
Hi, I am no guru. But If I were in your shoes I would be on the lookout for low mileage pre-owned Fiesta 1.6(2005 onwards) which would cost upwards of 2.3 lakh. Give the search enough time and I am sure you would come across a nice bargain. The fiesta is a fantastic car to drive.
My cousin got himself a 2006 1.6 SXi ABS run just 19000 kms for 2.8 lakhs in Cochin. Which I feel is fantastic value for money.
Adding just about a lakh to your Palio to upgrade to a powerful sedan is a sensible bet.
Yep, I agree, infact I saw a Fiesta sxi for sale on team.bhp which has run only 9k kms, although asking price is well over 4.50lakhs.
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Old 16th March 2011, 17:38   #367
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

Quote:
Originally Posted by bluevolt View Post
What you say guys? How long a wagonr can survive? After reading this thread i am planning to keep her till she completes at least 50,000 KM.
A hatchback & a sedan make for a balanced garage. Since your car is well-maintained & has such low mileage, no point selling her off. WagonR's easily cross 1,00,000 kms without issue.

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Originally Posted by mb_jg View Post
Currently own 2 cars, a) 1.2 Palio & (b) Maruti 800, both are 2006 models, covered 50k & 35k resp.
I normally wouldn't advise you to sell off either car, considering they are only 5 years old; however, in your case, we can make an exception primarily because of highway runs. Neither the slow 1.2 Palio nor the tinny 800 make for competent highway cars. Options:

- Sell the 1.2 Palio and buy a 1.6 Palio. Minimum $$$ out the door

- Sell the 1.2 Palio and go the pre-worshipped way. A used Corolla (plenty of good cars for 4 lakhs), Cedia or Fiesta (in that order)

Quote:
Originally Posted by Sugeeta View Post
Good thread I have come across at a time I was seriously considering buying another car and am eagerly awaiting the new Fiesta as a replacement to my nearly 5 year old diesel Fiesta
Thanks for the comments. I hope, after reading this thread, you will retain your Fiesta for another 2 - 3 years.
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Old 16th March 2011, 18:26   #368
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by GTO View Post
A hatchback & a sedan make for a balanced garage. Since your car is well-maintained & has such low mileage, no point selling her off. WagonR's easily cross 1,00,000 kms without issue.
Thanks GTO for your advice. I have now completely dropped the idea of replacing WagonR. I will now retain her for minimum 2-3 years more.
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Old 17th March 2011, 22:09   #369
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

Hi
I would like your opinion on my Getz which is running into her 5th year with 50 thousand kms on her odometer, usage of around 500 to 700kms in city with a mileage of 8 to 9kmps per litre.
My options
1. Exchange her for a new diesel vehicle which i guess would be more fun to drive
2. Put LPG to ease the petrol cost and run her for another 2 to 3 years
3. Exchange her for a preowned diesel vehicle
4. Install CNG as and when it becomes more available in chennai and use her for another 2 to 3 years.
Cheers
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Old 17th March 2011, 22:36   #370
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?


Thats my 5 year old Elantra GLS and it gives around 7-8 kmpl and still drives like a dream and ferries my family and me in total comfort. It has endeared itself to us soo nicley, that I really can't think of giving it away...become something of a pet to my family.
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Old 17th March 2011, 23:22   #371
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by bluevolt View Post
What you say guys? How long a wagonr can survive? After reading this thread i am planning to keep her till she completes at least 50,000 KM.
Mine is a 2004 model, done 73k and feeling better than Day 1. Hopefully, ours will touch the 1L mark!

Except for the old boxy looks and the small rattles, it sure doesn't seem to show any signs of age!

Last edited by CrAzY dRiVeR : 17th March 2011 at 23:28.
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Old 18th March 2011, 10:40   #372
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

While overall it makes a lot of sense to extract maximum mileage from any car one owns (in terms of time etc) and to reduce the burden of car loans and so on, it must also be borne in mind that with age, the vehicle's overall cost of maintenance tends to go up. My friend has a 5-6 year old CRDI Elantra which is beautifully kept and maintained but he says that of late its service bills have been ever increasing.
The point Im trying to illustrate is that whichever way one looks at it, there is bound to be some kind of financial impact on the car owner - either by way of servicing the loan or by way of increased maintenance costs with the greater age of the vehicle.
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Old 18th March 2011, 12:07   #373
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by shankar.balan View Post
While overall it makes a lot of sense to extract maximum mileage from any car one owns (in terms of time etc) and to reduce the burden of car loans and so on, it must also be borne in mind that with age, the vehicle's overall cost of maintenance tends to go up. My friend has a 5-6 year old CRDI Elantra which is beautifully kept and maintained but he says that of late its service bills have been ever increasing.
The point Im trying to illustrate is that whichever way one looks at it, there is bound to be some kind of financial impact on the car owner - either by way of servicing the loan or by way of increased maintenance costs with the greater age of the vehicle.
Decrease in depreciation of older cars outweigh any increase in maintenance cost. New cars get depreciated by 25-30% in year 1 while the depreciation is about 5% after 5 years. maintenance costs are much lower as compared to savings due to much lower depreciation.
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Old 18th March 2011, 12:15   #374
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

agreed. hence the vehicle is technically sitting at 0% value after 5 years. and one has a 0 outflow on the car loan too. the only costs would be the maintenance and the fuel. say approx 50000-55000 for fuel and Rs 25-30000 for maintenance = Rs 80000 per annum max or around Rs. 6500 per month which is pretty ok for a decent mid sizer. Plus of course if it is a popular car then one can look at a decent-ish residual value as well - say around 2-3 lacs if one were to sell it off after using it for 6 years or so.

Quote:
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Decrease in depreciation of older cars outweigh any increase in maintenance cost. New cars get depreciated by 25-30% in year 1 while the depreciation is about 5% after 5 years. maintenance costs are much lower as compared to savings due to much lower depreciation.

Last edited by shankar.balan : 18th March 2011 at 12:16.
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Old 18th March 2011, 12:59   #375
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Default Re: ARTICLE: YOUR 5 year old car : Keep, Upgrade or Swap?

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Originally Posted by GTO View Post
Option ONE : Retain your existing car

• Rs. 1,50,000 : Resale cost (realistic) of your 10 year old C-segment sedan in year 2013.
While I did not did the exact math and financial calculations, this was strongly on my mind when I made my purchase decision for an "uncomfortable" Gypsy. Simply put - I have chosen to incur this expenditure in upgrading my car to higher comfort levels (in the long run) rather than see a loss of money in resale price.

Thanks for posting and educating in an illuminating fashion on the pros and cons.

--Ragul
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