[SSarkar]

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?

[honeybee]

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.

[VJ05]

Originally Posted by SSarkar

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.

[ObsessedByFIAT]

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!

[VWAllstar]

Originally Posted by SSarkar

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.

[greendream]

Originally Posted by SSarkar

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.

[wildsdi5530]

Originally Posted by SSarkar

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.

[Rajeevraj]

Originally Posted by SSarkar

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

[ajmat]

Friend of mine was looking to replace his ageing Innova. He wanted a decent drivers car. He was about to sign up for a new OCty 1.8TSi Onyx for Rs 26 Lakhs on the road. It came with the basics. Something told him that he could do better. His use case is running a business between Bangalore and Salem.

He trawled the net and found this




2012 but only 16000km. He drove it but it was too good to be true. Asking price was Rs 23L. There was nothing as mint for its size and mileage in Bangalore. He asked me to take a look. I went to the dealer as an anonymous buyer and examined it closely. Tyres had sidewall scuffing and pads were near end of life. Dealer let me take it for a drive, no questions asked. I liked it, I would have snatched this if I was not walking to work (or if I had the dosh )

I still needed to verify the paperwork. Dealer openly told me to take it to Audi to verify. Cutting to the chase. My friend who was out of town over the holidays, came back. We found out that the last service was only 300 km ago but in August. We asked the dealer to send the car to my friendly car surgeon. He spent 2 hours over it. Lifted it up, removed the wheels. Came to the same findings as me except he declared that a steering arm showed some wear.

It was a keeper. Price got negotiated from Rs 22L to Rs 20L + commission. Car has gone straight to the surgeon to fettle the brakes and steering arm. He also will update the infotainment system to incorporate Apple CarPlay etc. Wheels will upgrade to 18"

Saved paying 6 Lakhs for less car and more fuel.

Only downers are the CVT and a little bit of uncertainly over the 15 year diesel car rule. (Car registration will be moved to Salem if that becomes a Bangalore only issue!)

[lamborghini]

Originally Posted by ajmat

His use case is running a business between Bangalore and Salem.

2012 but only 16000km. He drove it but it was too good to be true. Asking price was Rs 23L. There was nothing as mint for its size and mileage in Bangalore. He asked me to take a look.

It was a keeper. Price got negotiated from Rs 22L to Rs 20L + commission. Car has gone straight to the surgeon to fettle the brakes and steering arm. He also will update the infotainment system to incorporate Apple car etc. Wheels will upgrade to 18"


Only downers are the CVT

Honestly that's a brilliant price, and compared to the Octy - this car is built for cruising on the highways.

That being said, please do keep a bit of cash left over for odd issues and age related maintenance (rubber parts, etc.). The air suspension too isn't the most reliable so check it out as well - in fact the air suspension is probably the weakest link barring a few electronic gremlins.
While 18" alloys would look amazing on the car, just keep the suspension in mind if he will frequently travel over bad roads / sharp bumps. That being said, please do upgrade to better and grippier rubber - FWD + CVT = torque steer under hard acceleration.

As someone who's been driving the A6 a fair amount off late, you will love the solid highway stability, brilliant NVH, and even the respect it gets on the road after so many years. Treat it well, and be prepared for the unforseen maintenance like air suspension / rubber bits etc. and it will last you well!

[ajmat]

Originally Posted by lamborghini

That being said, please do keep a bit of cash left over for odd issues and age related maintenance (rubber parts, etc.). The air suspension too isn't the most reliable so check it out as well - in fact the air suspension is probably the weakest link barring a few electronic gremlins.
While 18" alloys would look amazing on the car, just keep the suspension in mind if he will frequently travel over bad roads / sharp bumps. That being said, please do upgrade to better and grippier rubber - FWD + CVT = torque steer under hard acceleration.

Treat it well, and be prepared for the unforseen maintenance like air suspension / rubber bits etc. and it will last you well!

Thanks, I did go through your report. We are walking in with our eyes open. The 5 Lakh saving will go towards such contingencies! As mentioned earlier, main use of the car is a Bangalore-Salem round trip of 600 KM on smooth roads

[raj_5004]

5 cars in 5 years!

This is how buying used cars have helped me!

It's been 5 years for me in Dubai and I have bought 5 used cars and sold 3 among them. To be honest, never have I lost any significant money in this process either.

Since I bought the cars used, the depreciation hit was borne by the first owner and hence I always got the balance outstanding loan amount when I sold the car.

So essentially, I have been using the car only by paying monthly EMIs, which is much cheaper than buying new, renting or leasing these cars.

I normally buy a used car which is 2~3 years old, use it for another 2 years and then sell it off. Both my current cars (Chrysler & Peugeot) are under warranty, so it ensures peace of mind. And I plan to sell it off within the warranty period.

My first car - Lancer GT [now sold]


My second car - Mustang V6 [now sold]


My third car - Ford Fusion [now sold]


My fourth car - Chrysler 300S [my current car]


My fifth car - Peugeot 3008 [my wife's car]

[Lobogris]

Originally Posted by ajmat

2012 but only 16000km. He drove it but it was too good to be true. Asking price was Rs 23L. There was nothing as mint for its size and mileage in Bangalore. He asked me to take a look. I went to the dealer as an anonymous buyer and examined it closely. Tyres had sidewall scuffing and pads were near end of life. It was a keeper. Price got negotiated from Rs 22L to Rs 20L + commission

Is this an A6? The price paid is too high for an 8 year old car. My cousin sold his 2014 A6 with around 50k kms last year for 12 lakhs here in Delhi. So a 5 year old vehicle, single owner and in perfect condition fetched him 12 lakhs whereas in your case we have an 8 year old vehicle going for 20 lakhs even though the mileage is a little lower. He had offered it to me as well but since I already have a Passat, I didn’t want to spend another 12 lakhs to get a similar vehicle.

[ajmat]

Originally Posted by Lobogris

Is this an A6? The price paid is too high for an 8 year old car. My cousin sold his 2014 A6 with around 50k kms last year for 12 lakhs here in Delhi. So a 5 year old vehicle, single owner and in perfect condition fetched him 12 lakhs whereas in your case we have an 8 year old vehicle going for 20 lakhs even though the mileage is a little lower. He had offered it to me as well but since I already have a Passat, I didn’t want to spend another 12 lakhs to get a similar vehicle.

Bangalore Prices are 30% higher due to higher taxation. Again, Delhi and Mumbai, supply exceeds demand, simple economics.

Your friends car would have sold for around the same price as what we paid for the A6 - Age or miles - your choice, we bought purely on condition!

[rayjaycleoful]

Originally Posted by ajmat

Bangalore Prices are 30% higher due to higher taxation. Again, Delhi and Mumbai, supply exceeds demand, simple economics.

Delhi prices for such cars have also plummeted because of the 10 year rule. Effectively for a 2014 car in Delhi you have only three years of driveability because you'll have to find a buyer in the last year.