Re: Depreciation
You should all see the prices of used Germans in Bangalore - 7 year old Merc C Class petrol with an asking price of Rs. 14 Lacs (Gaadi.com), 3 year old 320d? Rs. 22.5 Lacs (Carwale.com), 6 year old Octavia rider with an asking price of Rs. 7.5 Lacs (Carazoo.com). Why just the Germans? It hurts (a bit) when I buy a pre-owned Civic for Rs. 9 Lacs here in Bangalore and somebody else in New Delhi buys the similar Civic 6 months later for Rs. 6.5 Lacs. But I guess I'll have my revenge (to some extent) when its time to SELL my car!
By the way, inflation too helps in improving resale values. If a new 320d costs Rs. 30 Lacs in 2011, it will cost Rs. 31 Lacs in 2012, Rs. 33 Lacs in 2013 and so on. So, a Rs. 30 Lac 2011 BMW might go for Rs. 18 Lacs in 2016 - but only in Bangalore though!
Quote:
Originally Posted by .Albatross. 3) Keeping the car insured with BMW secure and insurance sets you back by Rs1.1L every year which should be considered. |
You are right! Insurance costs of a new car for 5 years will be a lot more than that of an old depreciated car
Quote:
Originally Posted by noopster @smartcat- while I appreciate the sentiment, I do think 5 years is too long a span to consider. Probably a 2-3 year horizon would be more realistic. |
When I do a search online for used entry level Audis & BMWs, it is very rare to see any listings. These two brands were launched around 2 or 3 years back. So this means most owners keep their cars for more than 3 years. Mercedes has been around for a long time, and one can see lots of listings.
Quote:
Originally Posted by CoolFire Smarcat, what if you also consider interest cost (or opportunity cost of capital if you are using own funds), which is actually the biggest benefit in buying used cars? |
Quote:
Originally Posted by lamborghini Add in another point of financing, and the used car deal becomes sweeter. Irrespective of the higher interest rates in used, it is still cheaper to take a 15L loan at higher interest rates than a 30L loan. |
Good points there! I should have thought about it before.
Quote:
Originally Posted by lamborghini However, the second owner would pay 20L for the car, plus 1.5L (Assuming reliability it as poor as a Merc) for maintainance a year. This comes to 7.5L. |
Quote:
Originally Posted by GTO Bank on 1 lakh per year in maintenance (averaged). . |
Maintenance costs of Rs. 1.5 lacs per year for 5 series & Rs. 1 Lac per year for a 3 series - are these estimates for a cranky BMW/Merc, and at an authorized service center? If I happen to stumble on a well-behaved BMW/Merc, will my average maintenance costs be lower?
In isolation, the number (1 Lac for 3 series or 1.5 lac for 5 series) seems to be large - but actually, it is quite reasonable. Because maintenance costs would only be 3% per year on the OTR price (30 lacs & 50 lacs respectively). This is like expecting a 5 year VW Vento TDi (Rs. 10 Lacs OTR) to cost just Rs. 30,000 per year to maintain.
Quote:
Originally Posted by GTO . Thinking of a pre-worshipped BMW after the Civic, eh? |
Not until I figure out what to do about the missing spare wheel!
Quote:
Originally Posted by GTO
50 grand from the after-market, which is the only option on a 5+ year old German. |
One needs to find a good private garage then. Seems to be a hassle - a big enough hassle to drop the idea of buying 5+ year old German.
Quote:
Originally Posted by gaurav_chopra04 If the first owner has got the bsi package of 5 years, you pay another lac for the same and get it transfered. . |
What's their logic for charging Rs. 1 Lac for the transfer of maintenance package?