ARTICLE: The Beauty of Lateral Upgrades (Getting MORE CAR for LESS $$$)

[smartcat]

acidkill,

Chevrolet service is very good nowadays, atleast in Bangalore. There are service centers now at almost every corner. Not sure about Chennai though. So Optra Magnum/Cruze might be a good choice - especially since the suspension is brilliant.

I did a check on Lauras on used car websites - they are available at Rs. 10 - 12 Lacs, not less than that.

[prajwalkashyap]

I remember back in 2002 I picked up an '87 M800 for Rs.42K (had run about 48K kms), spent about 2K for repairs, and sold it in 2004 for Rs.58K (odo reading was about 69K kms). Then I picked up an Alto for Rs.1.8L (29K kms) and sold it for 2L (odo at 62K).

Right now using wifey's M800 (2003 model, purchased in Feb 2010) which I picked up for 1L (38K kms). No repairs needed at all.... I am getting offers for 1.3L in as-is condition.....

I am actually profitting along!

Prajwal

[imp!]

GTO,

I agree with much of what you have said, but there are just a few slight issues in my mind.

1) Financing a used car is much more expensive, so in many cases this only works if one can make the entire payment up front.

2) Often, the really good deals (like Cedia) could have maintenance issues in many parts of the country. So if it is your primary car, then, one needs to be extra careful

3) If you are expecting to claim depreciation on your cars, then buying used will only make sense if the car is less than 2 years old !

I await your thought on these points.

cheers!
imp!

[GTO]

Originally Posted by acidkill

Since i am entering the real estate business, i will be driving in excess of 100 km a day on poor roads.

I'm thinking along the lines of an Innova, perhaps, for you. Or a brand new Scorpio? This is only because you mention "poor" roads. Either ways, lets continue the discussion in a new "What Car" thread.

2. Cruze sounds interesting - i hope there are good examples in the market fairly soon

4 lakh rupees off the MRP on an '09 Cruze in Bombay. Run 3,000 kms. Owner fed up of driving the car in bumper-to-bumper traffic (massive turbolag).

Originally Posted by SpinWizard

Am in the lookout for the exact same things as suggested by you. I presently own an NHC '04, I will be looking to spend another 4L after trading this to an '07 Accord or a Civic. It makes absolute sense to do this instead of shelling out 15L for a new Civic or 22L for a new Accord. What say ?

It makes sense and how! Do check out my pre-owned Civic thread to know more about the entire buying experience. I'm sure you'll pick up a couple of tips that help you in your search. If you hit a roadblock, we are right here

Originally Posted by prajwalkashyap

I am actually profitting along!

Thanks for sharing those deals! You must be an astute hatchback buyer / seller.

Originally Posted by imp!

1) Financing a used car is much more expensive, so in many cases this only works if one can make the entire payment up front.

Absolutely. That's just one of the cons already discussed in our New Car versus Used Car Article. A link to this thread has been added to the opening posts.

Often, the really good deals (like Cedia) could have maintenance issues in many parts of the country. So if it is your primary car, then, one needs to be extra careful

I beg to differ here. If you live in a smaller town, buy according to the brand's presence. Maruti Balenos & SX4s make for excellent lateral upgrade cars, while Hyundai, Honda & Toyota also cover a good part of our country. Mitsubishi....yes, I'd agree. Niche brands are best avoided if you live outside of a metro.

If you are expecting to claim depreciation on your cars, then buying used will only make sense if the car is less than 2 years old !

Correct. But depreciation is hardly a valid (sole) reason for buying a new car. The net benefit from depreciation claims is significantly lesser than the monetary benefits in buying used. Example : I bought my used Civic at 6.5 lakh rupees off the showroom tag. No depreciation benefits would even come close to this number, and whatever there are, you need to wait for a couple of years to realise them fully.

[kutlee]

Saw an ad still on for low-mileage petrol octavia for < 3.5 laks. What an upgrade for an OHC for no loss of $$$. But gosh, i'm not in Mumbai.

[anilkalvani]

Originally Posted by kutlee

Saw an ad still on for low-mileage petrol octavia for < 3.5 laks. What an upgrade for an OHC for no loss of $$$. But gosh, i'm not in Mumbai.

Depends on what you get. If its the 1.8TPi then go for it, but if its the older 2.0 115bhp, not worth IMHO.

[aniketi]

[quote=viraj

So finally I made the decision of spending 40K on her to get her repainted, rust proofing, suspension overhaul (if someone can help me I would love to put details of my partial re-built project)
[/quote]

I am interested. So in 40 K what all things you have done? Can you please give me details? My bro wants to repair his car as well. He want it to feel like a brand new almost.

[dieselroxx]

GTO,

This is a great thread. Wish I read it earlier, I wouldnt have purchased a new car.
There are some excellent value used cars in the market. Your Civic is testimony to that.
I Just came across a similiar deal: Mint 9000KM run 07' SX4 ZXi for Just 4.6 Lakh A New car costs over 8 Lakhs. Thats saving of nearly 45%. The same covered by extended warranty upto 2011.
At price of a new i10 you would get a C- Segment fully loaded Sedan.
I am sure 3 years down the line the SX4 would retain much better value than a Brand New I10.
Lateral Upgrading is surely the wise thing to do!

[leadf00t]

superb thread GTO. excellent thinking on the economics here.

I too belong to the same class.

Bought a 2001 5-speed MPFI at 1.55L in nov 2004 . SOld it in dec 2006 for 95K after being subjected to the 25th julyl floods.

picked up a used 2003 Lancer GLI run 60K ( 2 segments higher ) at 3.2L

some say i paid higher for my lancer but i am still happy that i got a significantly upmarket great looking and not to mentioned decently exclusive lancer for a total difference of 2.3L

Totally worth the upgrade at the price. Period.

[thedreamcatcher]

Extremely useful tips GTO. I generally avoid going the used way, but this is definitely something to consider.

The main problem is in finding a good car, but I do agree it makes a lot of 'civic' sense

[JLN]

Hello folks,

I am currently in the lateral upgrade market - have a 2005 Indica Turbo (84K run). I am looking for a sedan. Found 3 options in a few days -

a) 2009 Altis G (with Stanley leather), 6000 kms (ODO) for 10 lakhs.
b) 2007 (Jan 2008 purchased) SX4, 13000 kms for 5.5 lakhs.
c) 2008 Verna XXi ABS, 12500 kms for 5.75 lakhs.

My preferred choice though is an ANHC 2009 with under 10K miles for under 8 lakhs - unable to find one though. Missed one that went for 8.1 lakhs. made an offer of 7.8 and lost the deal.

any recommendations - I am biased towards the Corolla for obvious reasons - budget per se is not a constraint, just a little concerned with the ease of drivability in the city and the suspension issues known with the corolla. expected monthly driving is under 1000 kms with atleast 1 long trip on the highway. so definitely petrol this time around.

JLN

[sureshkishore]

Great Thread GTO,

This thread will help fellow BHPians extract value out of 'Pre-Worshipped' cars.

I traded in My 5 year old Zen for 2.3lakh went for a 3 year old Baleno at 90 thousand extra. In 2007.

A year Later I upgraded my Baleno for a SX4 (1 year old) at 1.25 Lakh extra.

In Three Years Rather than hanging on to my old zen i Upgraded to a nearly new SX4 spending just 2.15 Lakh

[Gilead]

Great article. Will definitely keep the tips in mind for the next upgrade which will probably be in another 5 years or so.

Originally Posted by GTO

• My neighbour is in the process of selling his 4 year old Tata Indica Turbo for Rs. 2.3 lakhs. Family demands a sedan, his running doesn’t really dictate a diesel, hence he is buying an ‘09 Ford Fiesta 1.6S for Rs. 4.75 lakhs. The Fiesta is less than a year old, has 9,000 kms on the clock and is still within factory warranty. The reason its going so cheap is Ford’s new “Fiesta 1.6 @ 5.5 lakh rupee" offer. For only Rs. 2.2 lakh more, my neighbour ends up with a near-new fun to drive C-segment sedan. Considering that his Indica Turbo is now out of warranty, and the Fiesta within, the Ford will probably cost less to maintain too!

Your neighbor got lucky. The 5.5 offer is probably for the base Fiesta whereas the S is a top of the line fully loaded model. I got an offer for 6.35L for my '09 1.6S, but I am not in the market to sell. And please ask your neighbor to join our small tribe on TBHP.

[Yusha]

Originally Posted by GTO

A pre-owned Pajero would do just as well for you! Another option is waiting for 2 - 3 years for 'em Fortuners to hit the used market . At 10 lakhs, they'll make for a great buy.

Never thought about that. Will do a research on Pajero and find out whats what. I can wait for a max of one year. The problem is that my Scorpio is a July 2006 model and has already done 135,000 kms. If I wait for another year it will add approx 30k to the mileage. Lets see. Thanks for the idea!!!

[GTO]

Originally Posted by kutlee

Saw an ad still on for low-mileage petrol octavia for < 3.5 laks. What an upgrade for an OHC for no loss of $$$. But gosh, i'm not in Mumbai.

It's either the Octavia 2.0 (RUN!) or an abused RS. Clean RS sell for 4.5 lakhs and up. Still a drool-worthy upgrade on your OHC.

Originally Posted by dieselroxx

I Just came across a similiar deal: Mint 9000KM run 07' SX4 ZXi for Just 4.6 Lakh A New car costs over 8 Lakhs. Thats saving of nearly 45%. The same covered by extended warranty upto 2011.

At price of a new i10 you would get a C- Segment fully loaded Sedan.

Lateral Upgrading is surely the wise thing to do!

Precisely the motivation behind this thread. There's some great cars just waiting to be lapped up by BHPians, at a fraction of their original price. A 2.xx year old SX4 ZXi will serve its next owner well for atleast another 7 years. A major advantage is that this particular SX4 has active extended warranty cover.

Originally Posted by leadf00t

some say i paid higher for my lancer but i am still happy that i got a significantly upmarket great looking and not to mentioned decently exclusive lancer for a total difference of 2.3L

Totally worth the upgrade at the price. Period.

+1 to that. I've always insisted that, if you find a used car you really like, pay a premium. Clean cars are well worth the additional moolah. I started with a budget of 6.5 - 7.0 for the Civic, yet couldn't resist this example at 8.10.

Originally Posted by thedreamcatcher

The main problem is in finding a good car, but I do agree it makes a lot of 'civic' sense

Pun intended, eh . Let us help you out with your next car (preferably pre-worshipped), thedreamcatcher! Ending up with a diamond from the rough is an addiction.

Originally Posted by JLN

a) 2009 Altis G (with Stanley leather), 6000 kms (ODO) for 10 lakhs.

This cars the pick of the lot...6000 kms makes a virgin. Bargain hard. How much is a new Altis G in Bangalore again?

Originally Posted by sureshkishore

I traded in My 5 year old Zen for 2.3lakh went for a 3 year old Baleno at 90 thousand extra.

A year Later I upgraded my Baleno for a SX4 (1 year old) at 1.25 Lakh extra.

Mouth-watering deals! So much more car, and newer ones at that, in the ball park of a lakh rupees. Congrats Suresh.

Originally Posted by Gilead

Your neighbor got lucky. The 5.5 offer is probably for the base Fiesta whereas the S is a top of the line fully loaded model.

You know how the market is. They don't care about a "sportier" variant. Tell them the Fiesta 1.6S has a stiffer suspension and the price will drop even lower (stiffer ride).

And please ask your neighbor to join our small tribe on TBHP.

He actually is; member R.P.M. A Ford fan, already has an immaculate well-driven Mondeo in the garage. Some years back, he had gotten himself a pre-owned Endeavour too.