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Old 28th March 2014, 21:57   #1
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Default Temporarily relocating abroad: What should I do with my cars?

We have two cars in Bangalore - a Cruze LTZ (April 2012) and a Spark LT (March 2008). We are relocating to the US for 2 - 3 years. There is a loan of Rs. 12 L on the Cruze and nothing on Spark. The Cruze has done about 35,000 km and Spark about 65,000 km. Both cars are in great condition.

I would love to keep both of them if their conditions do not deteriorate. We do have a covered basement parking in our apartment, for both of them.

What is the best way to deal with the cars?

BH.
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Old 28th March 2014, 22:11   #2
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Default re: Temporarily relocating abroad: What should I do with my cars?

Having been in your shoes, I'll give you two scenarios:

Our Zen was going to be stationary for about a year in a covered parking lot; we were close enough with some neighbors to hand them the key and they promised to drive the car around once every week. Luckily, that person actually did. The car was in perfect shape and went on to service us very well.

We tried the same with our Corsa when it was going to be stationary (different time frame, diff. cities, diff. set of people); no covered parking for this one. The neighbor didn't drive the car at all. When my dad got back from the US, the car was covered with layers of dust and the battery and fuel assembly (fuel pump, fuel line) were destroyed. We spent a good amount of money to get it to running condition. Of course, with the repairs done, it was good as new.

Moral of the story: if you don't have someone who will drive those cars, even if it is once a fortnight, the cars will suffer damage. 3 years is a long time for a car to be stationary; the loss you will bear on selling those cars will probably be worth more than having to repair the stationary car.
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Old 28th March 2014, 22:51   #3
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Default re: Temporarily relocating abroad: What should I do with my cars?

I have been in this situation being a techie in Bangalore. I would strongly recommend you either give the car to your family (parents, siblings maybe away in hometown) so that they drive and take care of it. Neighbor or friend may not be the best option for a high end car like the Cruze. Otherwise, please sell them off before you travel. This way you won't be worried about the car parked back home. Also, no point paying EMI for a car that is depreciating (perhaps developing issues like fuel pump faults and rusting etc). You would not want to come back and start spending time & money on repairs.

No doubt, Its emotionally daunting for someone who loves their cars.

ps. whatever money you lose by selling the car, can easily be offset with the financial benefits of being in US for an extra month
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Old 28th March 2014, 23:14   #4
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Default re: Temporarily relocating abroad: What should I do with my cars?

My neighbor travels a lot and he has a diesel Ritz. He handed over the key to me to use to whenever I can, so I take the car out two times a week to my office and use mine the other three days. That way, I get to drive a different car and also be of help to my neighbor.

So, if you TRUST someone to take care of your car, atleast the CRUZE, I would suggest have them use/take care of it, while you sell the Spark. My 2 cents based on being the guy who is the neighbor here.
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Old 29th March 2014, 00:08   #5
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Default re: Temporarily relocating abroad: What should I do with my cars?

You should retain the cars only and only if you get someone use them regularly and not abuse them. Cars left parked even 6 months start having issues. My parents stay with me 6 months of the year and whenever they go back north there Santro always gives issues with battery and some wear n tear.

Since your duration is much longer and you got an expensive car as well. Sell it and make as much as you can and get the loan done. Anyways after 3 yrs hopefully you would have some $$ saved to buy more fancy one
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Old 29th March 2014, 00:40   #6
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Default re: Temporarily relocating abroad: What should I do with my cars?

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Originally Posted by pahwa View Post
(perhaps developing issues like fuel pump faults and rusting etc). You would not want to come back and start spending time & money on repairs.
I would consider it lucky if it is just dirt. My neighbor in the US had rats eat all the wiring. Some even died inside the AC vent. So even after the car was completely restored with all wiring replaced - the car was stinking. After some debugging they found the dead rat in the AC vent. There are too many safe spots inside a car for rats to call their home and raise a happy family
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Old 29th March 2014, 03:45   #7
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Default re: Temporarily relocating abroad: What should I do with my cars?

I would preferably find a closed shed kind of location for its 3 years of parking, remove the battery, jack the car up on jack stands and remove the wheels, put a body cover on and you are good to go.

When you get back after 3 years. Get the battery charged, inflate the tyres to recommended pressures, call a mechanic home and change the engine oil so that your car is drive able to the service station. Also when the mechanic is there ask him to grease the caliper pins in the brakes as grease would have surely dried out.

Let the car idle for 10 to 15 minutes by sitting inside. Switch on the AC after the normal engine temperature is reached and observe if anything is amiss. Does the temperature rise more than normal ? Is there a check engine light ? Has the oil light gone off after the start ? If everything seems fine, you are good to go to the service station

At the service station, change the coolant, brake oil, gear oil, clean the brakes ( front and rear). Get an alignment and balancing done ( just in case )

and your cars are good to go as good as new.

Don't sell what you like, there are always ways and means to keep them hale and hearty if you go the extra effort.
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Old 29th March 2014, 06:57   #8
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Default Relocating to US for 2 - 3 years, what to do with cars?

Financially speaking, 3 years of depreciation comes to about 30 % depreciation. Final value of both cars will be about 7 to 8L if you don't sell for 3 years.

If you sell both cars and make about 10 lakhs (very very ballpark estimate as we don't know the year/model etc), the interest on that 10L alone is about 3 L (again, simplified!). Means 13L.

In other words, you can buy new cars when you are back by adding a little more money(about 2 to 3L more) but you will have newer cars and your overall asset value will also be more that the "keeping" old car case. You will also have the freedom to remain in the US just in a case things turnout that way.

Last edited by deep_bang : 29th March 2014 at 06:59.
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Old 29th March 2014, 08:19   #9
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Default re: Temporarily relocating abroad: What should I do with my cars?

I would really urge you to sell off both the cars and move on. Firstly the thought of your cars being safe from any damage, theft etc would keep playing in your mind. Secondly the cars would have depreciated quite a lot in the next 3 years. So what is the point in retaining them. Sell them off and enjoy our stay in US.
Who knows how are market would shape up 3 years down the line. Come back and buy new that time.
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Old 29th March 2014, 08:22   #10
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Default re: Temporarily relocating abroad: What should I do with my cars?

I would go with the views of Humyum!

No point selling the Cruze at least but you can do away with the Spark.

Park the car in such a way that no one plays around, scratches it. Buy a good body cover and fasten it.

I guess keeping the fuel tank full would be a good idea to prevent rust.

Anurag.
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Old 29th March 2014, 08:43   #11
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Default re: Temporarily relocating abroad: What should I do with my cars?

Quote:
Originally Posted by drmohitg View Post
Secondly the cars would have depreciated quite a lot in the next 3 years.
+ 1

I would sell both cars as two to three years is too long a time frame. And Chevrolet doesn't command good resale value. So, they are only going to depreciate more during these years.

And If I am compelled to keep at least one of them, I would retain the Spark. It is not going to fetch much even now and the depreciation hit in two to three years won't be that hard. Also, no point in paying EMI for the Cruze when you are not going to use it.

All the best and happy shopping in the US!
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Old 29th March 2014, 09:02   #12
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Default re: Temporarily relocating abroad: What should I do with my cars?

Best is to sell both the car's and leave to US with PEACE of mind. You will not have to bother about the car's condition, you will not have to bother about safety of the cars while you entrust it to someone else and last More than anything need not have to pay EMI for the car which is JUST DEPRECIATING and not being used by you.

By the time you come back, say about 3 yrs later, there would be much better and advanced cars at your choice to buy.
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Old 29th March 2014, 09:42   #13
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Default re: Temporarily relocating abroad: What should I do with my cars?

Quote:
Cruze LTZ (April 2012) and a Spark LT (March 2008). We are relocating to the US for 2 - 3 years. There is a loan of Rs. 12 L on the Cruze and nothing on Spark.
you should sell the Cruze - you are paying Interest on a depreciating asset that too which will not be used , I am not aware about resale prices in your city but even if you take a hit of couple of lac now, including any charges that Bank may levy on prepayment ( typically 3-5 % ) it will be better to sell this instead of letting it depreciate further . There is no way this car will increase in prices whenever you return back . You can keep the other paid car for any use you might have during occasional visits to India .

When you come back after 2-3 years , you will have better cars & hopefully with your increased earning's you can move to a higher segment ..

Last edited by Turbanator : 29th March 2014 at 09:44.
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Old 29th March 2014, 14:07   #14
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Default re: Temporarily relocating abroad: What should I do with my cars?

Another argument in favour of selling the car can be that future is so unpredictable. Who knows if you might come across different opportunities and decide to stay on in US or someplace else. Hence keeping a depreciating asset unused for so long is not advisable.

Last edited by GTO : 29th March 2014 at 15:15. Reason: Typos, please proof-read before submission. Thanks!
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Old 29th March 2014, 15:14   #15
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Default Re: Temporarily relocating abroad: What should I do with my cars?

Agreed with the majority. Best decision is to sell them.

3 years can become 4. Do you think you'd want a 6 year old Cruze upon return? Nope. Plus, standing idle for so long will ruin the car.

It's obvious that there are financial gains in the migration abroad. Don't worry about the small hit you'll take from selling the cars. Get rid of them and focus on buying a nice car in the USA instead
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