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Old 28th September 2019, 18:39   #481
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Default On Trading In a Used Car for A Used Car

Hello Fello BHPians,

I'm faced with a unique problem and am reaching out to you to understand your POV on what would be an ideal way forward.

A couple of months ago, January '19 to be precise, I picked up a 2013 Honda Amaze VX AT (2013) for my daily office commute from Thane to BKC (26km). The idea was to have an easy car to drive in the ever growing traffic scenario. However, due to a liquidity crunch, I had to do so by taking a used car loan.

A couple of days ago, I had enough of driving and tried out CityFlo, the private bus service and it has been an absolute revelation. To the extent that I absolutely cannot imaging driving to office and back anymore.

Now the problem is that I am still paying an EMI for a car that essentially is being used only for a KM everyday since the Bus stop is around that distance away from my home. In this scenario it becomes very hard to justify an EMI for a car that essentially is just standing.

To that effect, the plan is to find a buyer, get rid of the car, get rid of the EMI and buy a second/third hand car which might be much older in the differential amount.

Trouble is, that differential amount is likely to be less than1.5 Lacs.

Now my research has yielded very sad options thus far. I'm absolutely against hatchbacks and the whole idea is to buy a car that is great to drive and reliable enough for small distances as I have other cars that can be used for longer, family rides.

Any ideas?
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Old 28th September 2019, 21:02   #482
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Default Re: On Trading In a Used Car for A Used Car

Selling a used car, i.e. a car that one had bought used, will always lead to an even lower price.

It's your call to keep or sell it, but do work out the loss by selling the car and foreclosing the loan, vs keeping the car, using it and saving the CityFlo charges.

If you do decide to sell it, see if you can find a buyer within your family or friends who will not try to rob you over the price, so that you get as good a deal as possible.

Unless you want to be asking a similar question in a couple of years after this, don't even consider buying another second or third hand used car. Now that you know the financial implications, try to cut your losses.
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Old 28th September 2019, 21:29   #483
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Default Re: On Trading In a Used Car for A Used Car

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Originally Posted by SSarkar View Post
To that effect, the plan is to find a buyer, get rid of the car, get rid of the EMI and buy a second/third hand car which might be much older in the differential amount.

Trouble is, that differential amount is likely to be less than1.5 Lacs.

Now my research has yielded very sad options thus far. I'm absolutely against hatchbacks and the whole idea is to buy a car that is great to drive and reliable enough for small distances as I have other cars that can be used for longer, family rides.

Any ideas?
You should not have much difficulty in finding buyers for your Amaze Petrol AT provided the car is in good condition as AT cars in demand these days.

Regarding your need for another used car, May I know what's your budget? If your budget is around 2 Lacs then you can get a used 8-9 years old Civic / Fiesta / Lancer. All these cars will be good to drive. Get the car thoroughly checked at ASS before buying.
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Old 28th September 2019, 23:11   #484
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Default Re: On Trading In a Used Car for A Used Car

I know you have have mentioned you are dead against hatch backs. However given your dilemma and the Mumbai traffic, a Nano AT would make perfect sense. Very easy to drive, easy to park and pretty light on pocket as well.
Since you have other highway capable cars, this small wonder would actually surprise you with what it has got to offer.
Additionally, since the car might soon be discontinued, you might get it a great bargain price. Again a little more mulah saved right there!
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Old 28th September 2019, 23:19   #485
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Default Re: On Trading In a Used Car for A Used Car

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Originally Posted by SSarkar View Post
Any ideas?
Do not sell Amaze so soon. Does not make sense. The loss in selling a second hand car is much more than selling a single owner car.

Since it is petrol, it does not require it to be driven much. Use it on weekends, go on small trips and then may be post few years you can think of selling it.
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Old 28th September 2019, 23:46   #486
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Default Re: On Trading In a Used Car for A Used Car

Quote:
Originally Posted by SSarkar View Post
Trouble is, that differential amount is likely to be less than1.5 Lacs.

Now my research has yielded very sad options thus far. I'm absolutely against hatchbacks and the whole idea is to buy a car that is great to drive and reliable enough for small distances as I have other cars that can be used for longer, family rides.

Any ideas?
For 1.5 lakhs, you can get a 10year plus santro or a WagonR and bring it up to proper shape.Stay away from heavily depreciated expensive cars as their maintenance especially when one is on a tight budget is cumbersome.Preferrable sedans at that budget will be long forgotten models like accent or Baleno. I am quoting examples from the Maruti and Hyundai stables primarily because reliability of their cars post 10 years also is at acceptable levels.Here the definition of reliability should also include availability and cost effectiveness of spares and subsequent service requirements. Further more their cars will have some meaningful resale value, despite their age.
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Old 29th September 2019, 08:51   #487
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Default Re: On Trading In a Used Car for A Used Car

Quote:
Originally Posted by SSarkar View Post
January '19 to be precise, I picked up a 2013 Honda Amaze VX AT (2013)
Any ideas?
Funnily A 2013 Honda Amaze 3rd hand will probably fetch you about 3 Lakhs. And you want to buy an older car for 1.5 Lakhs. So guessing that the outstanding loan is about 1.5 Lakhs.
My suggestion is to retain the Amaze if it has no major issues. Look at restructuring the loan or foreclosing it.
Of course if you don't need a car, then sell it by all means.
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Old 29th September 2019, 09:03   #488
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Default Re: On Trading In a Used Car for A Used Car

Quote:
Originally Posted by SSarkar View Post
Now the problem is that I am still paying an EMI for a car that essentially is being used only for a KM everyday since the Bus stop is around that distance away from my home. In this scenario it becomes very hard to justify an EMI for a car that essentially is just standing.

To that effect, the plan is to find a buyer, get rid of the car, get rid of the EMI and buy a second/third hand car which might be much older in the differential amount.

Trouble is, that differential amount is likely to be less than1.5 Lacs.

Now my research has yielded very sad options thus far. I'm absolutely against hatchbacks and the whole idea is to buy a car that is great to drive and reliable enough for small distances as I have other cars that can be used for longer, family rides.

Any ideas?
If the usage of the car is minimal, I would suggest selling it and not buying a replacement car for now. If your usage is going to be 1KM a day(which can be handled maybe through an auto, cab or even walking), no point in buying a cheaper car which will also spend most of its time unused and may end up giving more issues than the Amaze as it would have to be an older cheaper car. If you ride, then maybe a two wheeler will do the job for you.

You also mentioned you have other cars for the family drives. Another reason not to spend money on a car for this use case
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