Team-BHP - The 'not-so-obvious' advantages to buying pre-owned cars

Team-BHP (https://www.team-bhp.com/forum/)

- On buying a car (https://www.team-bhp.com/forum/buying-car/)

- - The 'not-so-obvious' advantages to buying pre-owned cars (https://www.team-bhp.com/forum/buying-car/182304-not-so-obvious-advantages-buying-pre-owned-cars-4.html)

Completely agree on the VFM proposition provided by pre-owned cars. Prudence however would dictate that we shouldn't get carried away while going in for a pre-owned car, or the cost of ownership could be a killer. For instance, if my budget is 15L for an old or new car, and I go in for say a 4 year old C Class instead of a new Altis, I'd do well to remember that spare parts / service of the C Class are priced as per a new C Class and not tailored for older cars. This one thought sets me right, whenever I start off on a flight of fancy and start eyeing cars above a certain price range :D

Quote:

Originally Posted by Coplay (Post 4105592)

This is from the TVS Group. And out here in Chennai their word is as good as gold, rock solid trust levels and a long track record in auto ancillaries, vehicle manufacture, car dealerships etc from over a century now (founded in 1911).

Go ahead - if they quote you that sort of a rate and you're happy, my bet is that you won't be cheated or anything of the sort.

Quote:

Originally Posted by sups (Post 4105257)

An excellent thread indeed.

I will be grateful if you please share recommended ways to look for good used cars. Is it Truevalue or OLX or local used car sellers?

I have been looking for a low-run manual diesel Jetta for sometime with a cost of around 10 lakhs. No luck yet. So, would like to learn from experienced people.

I mostly look on OLX and Carwale but sometimes actually spending time going through used car malls also helps

Best hunting ground for Jetta would be Mumbai / Thane / Navi Mumbai

Another major hurdle for you is MT most of the Highline models were sold in AT trim

Here are few examples (Do keep in mind I have searched using my buying style i.e. low run Top end models)

2013-Jetta Highline Tdi AT - 45K ODO - 12.5 L
https://www.olx.in/item/volkswagen-j...tml#f743b5dd16

2012-Jetta Highline Tdi MT - 65K ODO - 8.9 L
https://www.olx.in/item/volkswagen-j...tml#799688f319

2011-Jetta Highline Tdi MT - 59K ODO - 8.4 L
https://www.olx.in/item/volkswagen-j...tml#799688f319

2012 - Jetta Trendline Tdi MT - 42K - 7.75 L (Although low model but additional warranty and Free Service from dealer not to mention low cost)
https://www.olx.in/item/volkswagen-j...tml#799688f319

You can also consider alternate option such as Skoda Superb (My Fav. pick in the category) or Elantra

2013 - Hyundai Elantra 1.6 Sx MT - 9.5 L
https://www.olx.in/item/hyundai-elan...tml#7d0c9bb46a

Also understand these are listed price and 100% negotiable, Things to look for

1. Service Record for last 2-3 entries
2. Condition of Tires & Battery
3. NCB on Insurance (low NCB = Insurance claim mostly due to damage)
4. Interior Quality (Leather Seats with Airbags are expensive to replace)
5. Door bidding (No patch work, rusting etc)

Hope the above information helps clear doubts, Happy hunting :)

Do any private pre-owned car dealers provide any kind of warranty say for 6 months or so? Or they just, buy it - sell it - forget it.

Quote:

Originally Posted by viraj_s85 (Post 4105735)

Can't thank you enough for providing the pin-pointed details and spending time to find out the links for recent jetta deals.

As you mentioned, used car market is much more matured in mumbai than in Pune. Naturally options are much more in Mumbai. It might be a good idea for me to source one from Mumbai for my use in Pune. I heard that all that is required is a NOC from Mumbai. Thanks again.

Quote:

Originally Posted by sups (Post 4105903)

If you have any sort of an address proof in Mumbai you could get it registered right there and skip the NOC headache. A within state NOC doesn't take much effort but it does drag out the time required for the process, and you end up paying two agents one in Mumbai and another in Pune.

Quote:

Originally Posted by bhandary (Post 4105837)

Do any private pre-owned car dealers provide any kind of warranty say for 6 months or so? Or they just, buy it - sell it - forget it.

The big ones like Mahindra First Choice, Maruti & other brand pre-owned cars division provide warranty.

But, I am not sure if you want to claim something in warranty; so you approach the car trader or direct Authorized service station. lol:

Following point has been added to the article!

Quote:

Originally Posted by GTO (Post 4104219)

not-so-obvious advantage #16
Attachment 1583346

The sheer variety! Whatever the budget you have for a pre-owned car, the choice of models will be at least thrice that of new cars at the same price point. As an example, someone with 6 lakhs in his pocket can only consider hatchbacks & a handful of compact sedans among new cars. In the used car market however, over & above hatchbacks & entry-level sedans, I could find him powerful C2 segment sedans (e.g. City, Verna), SUVs (e.g. EcoSport, Duster), MPVs (e.g. Ertiga), 4x4s (e.g. Thar, Gypsy) and so on. When I was recently shopping for a 530d, there were probably about 20 new cars that fell in the same budget. On the other hand, the pre-worshipped market gave me a choice of 200 models (including V8 petrols & V10 diesels!!).

Quote:

Originally Posted by mmxylorider (Post 4104775)

Only people in the 'know' know it's used.

If that matters to you, yes. A pretty girl once told me that, even if a guy arrives in a 20 year old Mercedes W124 (cost = <2 lakhs), it'll make more of an impression than a guy in a brand new Honda City (cost = million+ rupees). That's just how society is.

Quote:

Originally Posted by InControl (Post 4104796)

So someone who buys a 4 year old car will already have most of the upgrades like a upgraded music system, aftermarket alloy wheels and other add-ons without any additional cost to the buying price. WIN-WIN :)

Sadly, the last 4 cars I bought didn't have any accessories. On the other hand, those who bought these cars from me got a lot of them :D.

Quote:

Originally Posted by Mafioso (Post 4104992)

so is it worth going in for a used car loan of 5 lacs vs a new car loan of 6-7 lacs?

Absolutely yes. Refer to the tips I shared to lower your interest rate. End of the day, whatever marginal interest you pay extra, you are getting a much, much superior car.

Quote:

Originally Posted by bajica (Post 4105065)

How do fellow BHPIANS rate a 2nd hand car used as Test ride car for a showroom?

I wouldn't touch it with a barge pole. Testdrive car = 500 people have driven it without caring about it.

Quote:

Originally Posted by Shivanshu (Post 4105106)

The only question that remains is from where to get genuine second hand cars.

1. Mahindra First Choice or Maruti True Value ?

Quote:

Originally Posted by sups (Post 4105257)

I will be grateful if you please share recommended ways to look for good used cars. Is it Truevalue or OLX or local used car sellers?

Focus on the actual car more than the dealer. You can get a good car from a bad dealer or a bad car from a good dealer. As long as you follow the best practices listed in our used car buying article, you'll be safe.

In terms of variety, you can't beat Olx. They own the online classifieds market in India.

Quote:

Originally Posted by viraj_s85 (Post 4105195)

Few things that I usually look for while buying used car,

1. Always buy Top-End version

Congrats on your deals! Luckily, the last 3 used cars I bought were all the top variant. Best part is, the premium for a loaded variant shrinks in the used market.

Quote:

Originally Posted by devrajman (Post 4105335)

If you "know" your car, its no issue buying 8yrs+ old car.

I'd never recommend buying an 8 year old car. The sweet spot is between 2 - 3 years of age (when they depreciate the quickest).

Quote:

Originally Posted by Coplay (Post 4105347)

Any pointers on which manufacturing year I can look at to avoid any heartache in the future?

Between 2 - 3 years old. Ideally, you'd buy a Jetta covered by factory warranty and then get the extended pack. Your risk = zero.

Quote:

Originally Posted by Aslamjaffer (Post 4105526)

I would always advocate for a used car over a new one. I own a used M800 and a Honda Civic (recent buy) and both are serving me just fine.

The Civic is one heck of a used car! It was 5 years back, and it still is today, because of the tempting prices. I'm seeing pristine Civics trading at merely 5 lakhs! Average but still usable Civics are going for 2 lakhs!

Quote:

Originally Posted by Abhi_rx (Post 4105555)

I bought a 2010 Jetta Highline last year which had run just 35k. After regular service and new tyres on day 1, it was good as new. My runs are typically long distance and hence the need to have a safe, solid and reliable car. The Jetta has not disappointed one bit. Its fantastic value for the money, it also returns a higher average than the car it exchanged, a used Swift Dzire (D)!

Congratulations on your beautiful sedan :thumbs up.

Quote:

Originally Posted by swami69 (Post 4105563)

I bought a 2013 October XUV500 W8, 34Kms for 10L which tick marked all my requirements for a long distance tourer for a family, SUVish, fantastic engine and all the safety features one can think off. I extended the warranty to another 2 years and also got a zero dep insurance cover done. Got the interiors cleaned at 3M and did a machine waxing myself and the car looks fantastic in white.

Just the way I'd do it. Congrats man.

Quote:

If i had made a decision to go in for a new one at that budget, i would have probably got a sedan like Amaze, Dzire or something in that range which I did not want.

Incomparable, just incomparable.

Quote:

Originally Posted by Coplay (Post 4105592)

I accidentally stumbled upon an NBFC, TVSCredit.co.in which provides loans for used cars, bikes, autos and tractors.
I filled in an online form and they promptly called me. I was quoted an interest rate between 7.0 to 9.1% based on the car/age/loan amount..

Nice one, thanks for sharing. Please PM me if the deal actually goes through at this rate. We should announce it via a new thread so that others benefit from the news.

Quote:

Originally Posted by Agarwaka (Post 4105669)

For instance, if my budget is 15L for an old or new car, and I go in for say a 4 year old C Class instead of a new Altis, I'd do well to remember that spare parts / service of the C Class are priced as per a new C Class and not tailored for older cars.

A Mercedes isn't cheap or value-for-money to own, whether new or old. If you want VFM upkeep, you'd go for the Altis.

Quote:

Originally Posted by bhandary (Post 4105837)

Do any private pre-owned car dealers provide any kind of warranty say for 6 months or so? Or they just, buy it - sell it - forget it.

I wouldn't put any weightage on their warranties; would trust only manufacturer warranties.

Brilliant thread GTO.

Here is my contribution to the discussion, which has come from my own experience:

A good second hand car could have your desired accessories already fitted. And, we all know that there is no premium being paid for accessories fitted by the previous owner.

My Honda City had the following:
1. Seat Covers of Honda City -Honda Genuine Accessory (Rs. 7500)
2. Ambiente lighting-Honda Genuine Accessory(Rs. 7500 as a got it in stock clearance sale, else sticker price Rs.14000)
3. Tweeters - Honda Genuine Accessory(Rs. 3500)

As the model had got discontinued, so getting OEM accessories had got difficult.

I couldn't remove them, nor could I get value for all the financial love that I had shown to the car. Lucky man who bought my car.

Quote:

Originally Posted by GTO (Post 4106195)

Nice one, thanks for sharing. Please PM me if the deal actually goes through at this rate. We should announce it via a new thread so that others benefit from the news.

I will definitely do that. Like I said, for now, it sounds too good to be true.

Quote:

Originally Posted by Coplay (Post 4105592)

Since there is a subtle discussion on Used Car loans also going on here, I accidentally stumbled upon an NBFC, TVSCredit.co.in which provides loans for used cars, bikes, autos and tractors.
I filled in an online form and they promptly called me. I was quoted an interest rate between 7.0 to 9.1% based on the car/age/loan amount.

Has anyone here used these services or reason out why the interest rates are much lower than what banks offer.

I was almost sold on the offer but the deal sounds too good to be true.

Is this interest rate fixed, or on reducing balance? As you said, sounds a bit too good to be true, since it is lower than even home loan interest rates. My guess is that this is a fixed rate (based on the overall loan amount), which translates to approx. 13-16% reducing balance.

Let me share something else: Regret.

Yes you heard it right. I picked up an immaculate Civic recently and have been using it for last 2-3 months. And all I can think of is, why the heck did I not do this earlier? In 2010 I had suggested dad that we pick up a used Civic but he said we'll buy whatever you decide, but it has to be a new one. And we ended up buying the City. In hindsight, I should have been more adamant.

The city was fantastic and never troubled us. But I did a lot of highway runs at the time, and I could clearly see that it's not meant for even basic triple digit speeds. Lack of tall gearing and not so mature highway manners are it's Achilles heel, and unfortunately I had to endure them for 5-6 years.

Now I have something perfectly suited for highways, except that I seldom drive outside city limits now :Frustrati And probably the worst part is, I might have ended up saving some moolah too, or can say the reduced FE would have been compensated.

Got a used Brio as good as new for my parents almost two years back, and it hasn't depreciated much which means I can happily sell it off anytime I want. Frankly, buying a new car has begin to sound a bit ridiculous to me now.

And like almost everyone here, there's another 3rd gen City which I now plan to replace with a Jetta. Provided there are anymore left in the market going by how BHPians have gone crazy after them :)

My My!!

Have always been a new car guy. Mainly out of convenience. Or rather put it this way, I like to tread the path of least resistance. While buying a car it meant that with a new one, I am comparitively safer with less work to do than while scouting for a used car. Never know if someone pulled a fast one on you and you end up with a lemon.

However, this thread has opened my eyes! I was thinking of may be (just Maybe) buy a Hexa in a couple of years (you know after the initial set of niggles are sorted out?).

Now I am wondering about the deals I can close for 60% of the ex-showroom price of a Hexa (18 Lakhs) if I go the pre-owned way!

Thanks for this thread GTO.

EDIT: Any idea which would be a safe SUV to scout for in the used market for around 12 Lakhs?

Has this led to a drop in prices / some scope for negotiation?

http://english.mathrubhumi.com/news/...ales-1.1563305

Quote:

Originally Posted by GTO (Post 4106195)

Congrats on your deals! Luckily, the last 3 used cars I bought were all the top variant. Best part is, the premium for a loaded variant shrinks in the used market.

Its just the way I prefer, gone are the days where i use to specifically source for low end version at cheaper rates so that I can customize them (ICE / Rims / CAI etc) now i prefer Top End fully loaded version which hardly requires any additional accessories.

I will PM you soon for help regarding adding German in my garage fiddling in mind should i keep XUV and add German or sell it off and pick T-Fort / Pajero Sport

Quote:

Originally Posted by sups (Post 4105903)

Yes apart from regular documents you would require NOC which is not a big hassle specially if you buy car from dealers, Since its interstate transfer I recommend retain registration number and don't think about getting MH-12 MH-14 plates