[JoseVijay]

Originally Posted by AAAP

Hello Friends,

I am considering whether to buy a new XUV500 W8 or a couple of 2012 W8 Models which have run about 40-50k quoting about 9.5lac to 10lacs. My main concerns are whether 2012 built cars are reliable, particularly the electronics and drive-ability. I have test driven an almost new W8 variant of the XUV500 at the dealership and am confused whether to pay nearly 5 lakh extra for a brand new XUV as compared to around 10lakhs for a pre-owned one.

Thanks,

I would suggest you to go for the new XUV 5OO as the first gen XUV 5OOs have an endless list of niggles and issues. My cousin sister who bought XUV in 2012 is banging her head with all the issues that crop up on a regular basis. So I would not advice you to go for the pre-owned XUV.

Even though it would cost you a couple of more lakhs, go for the new car.

[shashanka]

Originally Posted by GTO

Regular product launches, frequent model updates and easy access to financing have created an ...........For example, a 5 lac rupee pre-owned Honda Accord or Mercedes Benz W124 will cost more in upkeep than a new 5 lac rupee car.

Hello GTO,

As always, a very useful and informative article. But I want to clear up a question that has popped up in my mind regarding car financing and where else to turn but TBHP?

Say I wish to buy a new car. I want to put down 60% of the OTR price as down payment. The balance 40% I want to pay by EMI but without involving any loan. If I have the wherewithal to pay the balance in monthly EMI but do not want to take a bank loan, will the showroom/manufacturer accept this kind of arrangement?

Keenly awaiting enlightenment!
Best regards,
Shashanka

[speedkrish]

What are the likely trends for cars in 2016. [ Petrol or Diesel ]. A serious debate has been raised by NGT and SC by banning Diesel cars above 2000cc in Delhi. With oil falling down and the gap between Petrol and Diesel narrowing more people are inclined to buy Petrol cars. Will 2016 see the shift in favor of Petrol ?

[kanu2k15]

Hello all,
As the title suggest I am looking for a car (new or used) within a budget of 5 Lakhs including everything.
So a little story before I start to give out preferences, I have moved to Bangalore couple of months ago and my Alto and Ecosport are in Delhi serving my family. I had brought my companion a Royal Enfield with me here. Now during past couple of days I have seen a lot of rain every evening which spoils all my plans of going out a little. So now a thought of owning a car came up, I was fixated on getting a Thar (new or user) and also had posted here in the forums for advice. Though I got good advice and discarding the thought of buying of a used Thar was struck off because of the abuse they could have gone through. I was about to get a new Thar, but it’s costing me 10.50 big ones. After a discussion with my family and lots of gyan I have given up the thought of a Thar as of now.
So now I want a vehicle for mainly 2 people (me and my wife) to drive in the city and some weekend long drives. Petrol is now what I prefer as old Diesel vehicles may get banned soon. Below are the vehicles I am interested in and sorted out by new and old as per preference.

Pre-Worshipped Cars

Honda Civic 2007 – 2010 model
Good looking car with I think a good engine and is also highly customizable. I like low stance vehicles. Priced around 3.5 – 5 Lakhs.

Toyota Corolla (Petrol) 2007 – 2010 model
It’s a Toyota. Checked other threads and found this to be a decent pre-owned car

Honda City 2007 – 2010 model
Good workhorse. Quality is good overall.

Honda Accord 2006 – 2009 model
Powerful engine. Mileage is not good.

New Car

Tata Tiago Revotron XZ
VFM package. Its more than 5 Lakhs on road but can manage as it’s gonna be a new vehicle. Has ABS and airbags. Service centers could be an issue.

Renault Kwid RXT
No ABS. Service could be an issue.

So can you guys help me in deciding what car should I go for within the budget of 5 Lakhs. I will be opting for bank loan so need to keep the interest charged also in mind.
Also any other vehicle you guys suggest should be worth looking at then please do suggest.


@Mods: I tried to find a post for similar situation as mine but couldn’t find one. Please merge it if you find any.

[rdst_1]

Buying a used vehicle with bank loan might not be feasible for you because banks usually have strict rules for vehicle selection as well as higher interest rates when giving loans for buying used cars. Please check this before going forward with the discussion.

[autorahul]

Bank interest rates are generally high for second hand cars, and depend on a lot of factors, such as dealer, condition etc. so keep in mind the interest rates too. If you are fine with second hand, I would choose Civic over Corolla, if it has run less than 60k km. If more than that it will be Corolla over Civic. Mainly, because of maintenance. While Honda maintenance is not a problem, Corolla is just a tad better.

Another car, which I think you might get in 5 lakhs is Honda CR-V, which would be great for weekend long drives.

Amongst new, I would suggest going with Celerio LXi(O). It will come roughly around 5 lakhs, has all the safety features, good engine, a Maruti, and you can kit it up with accessories of your choice.

[Altocumulus]

Why aren't you looking at decent fully loaded hatches when considering used cars. You will have a wide variety of fully loaded hatches at much less then 5L and they would be pretty recent ones compared to the 6+ years sedans. A Swift Zxi, Ritz Zxi, Jazz, Brio, etc. will be available. Their maintenance will also be cheaper compared to the sedans you mentioned. Save and then buy the Thar.

Also as already mentioned interest rates for used cars are mostly as high as 18% or more. Its better you shop around for a personal loan which one can even get at 12-13% nowadays and buy the car. That way your car will also not be hypothecated to the bank and you can sell off anytime in case of a cash crunch.

[landcruiser123]

From a safety, comfort and maintenance POV, I think that the best choices in the order of preference are:

Originally Posted by kanu2k15

Toyota Corolla (Petrol)
Honda Civic
Honda City
Honda Accord

Just note that the Hondas might scrape the belly on speed breakers in and around BLR and the Honda accord will be overkill for only 2 occupants.

Also remember: "You could buy a used mercedes at the price of an Alto, but it's maintenance cost will not be the same as an Alto." So, budget for maintenance.

[kanu2k15]

Maintenance - as low as low possible.

I too thinking of Corolla or a Civic. Any pointers like which model/year to be vary off?

@autorahul - I didn't like the looks of Celerio otherwise a good car.

@Altocumulus - Thanks for the tip, I'll look for some hatchbacks too. I also saw somewhere where on a dealer advert for their cars stating loans from HDFC @ 7%. I will need to go shopping this weekend. If the interest rates is on the high side then surely will try to get a personal loan.

[a4anurag]

Originally Posted by kanu2k15

Maintenance - as low as low possible.

Get yourself a Ritz ZXi or a Swift ZXi or even a WagonR VXi. These cars are low on maintenance too and perform reliably with FE to back up.

For 99% of its time with you, only two of you would occupy seats in it so a sedan IMO isn't going to be of any help. Moreover the headache in parking, bumper to bumper traffic in Bangalore is worst (Go through Rants in Bangalore thread).

Looking at that thread it is wise to get a Reva e2o or a Nano. When Bangalore is in picture, smallest car is the best in the current prevailing traffic conditions. You'll be struggling with the Civic scrapping is underbelly at every speedbreaker.

[Viju]

Originally Posted by a4anurag

Get yourself a Ritz ZXi or a Swift ZXi or even a WagonR VXi.

If you are suggesting buying any of these cars brand new, I think it may not be the best idea. All of them are at the end of their respective life cycles. If buying used, yes, a low mileage Ritz ZXi or Swift ZXi with service history does make sense as they have a decent safety pack as well.

Originally Posted by kanu2k15

Tata Tiago Revotron XZ VFM package.

This is what I would suggest. Small hatches don't get much more VFM than this. I really don't think you are going to have reliability or service related issues. It is probably the best engineered product from Tata yet.

Good luck.

[a4anurag]

Originally Posted by Viju

If you are suggesting buying any of these cars brand new, I think it may not be the best idea.

Apologies for not being clear on my original post.

Yes, I did mean to go the pre-owned route and not new purchase.

[rdst_1]

Originally Posted by kanu2k15

I also saw somewhere where on a dealer advert for their cars stating loans from HDFC @ 7%. I will need to go shopping this weekend. If the interest rates is on the high side then surely will try to get a personal loan.

If you have money saved up in a FD, then that is the best option for a loan.
Every bank provides an OD account if you pledge your FD for 85-90% of the value of the FD. Interest rate is usually 1-2% more than the FD interest rate.
So let's say you have an FD of 6L in SBI at 7.75%. The bank will give you an OD on that for 5.1L at just 8.75%.
And the best part is that you can be flexible with your returns as there is no fixed EMI. You don't touch your savings and still get the best possible loan you can get.

[IshaanIan]

If you want a used car but easy maintenance, look no further than a well maintained Corolla type 1 since its parts were the cheapest.

If it is a new car you decide to buy, then the Tiago is a brilliant proposition.

You can PM me if you want help finding a used car in good shape

[Rajeevraj]

I doubt you will get a preowned car loan at 7%. Even a new car loan is closer to 10%. Even if a dealer is offering, pretty sure there will be some hidden terms and conditions. So read the fine print carefully.

If you have to take a loan, would be better to take a loan for a new one. Would not recommend taking a personal loan to buy any kind of car. Especially higher segment older cars like the Corolla or Civic. It may be a Honda and Toyota, but irrespective of that a 8 year old car will have its share of maintenance.

The Tiago is a very good option for your requirements and budget. Or if you can push it a little more, the grand i10, Figo are options worth looking at.