[ghostrider]

Originally Posted by drmohitg

How will it lead to better re sale value? The person who bought his car at the earlier prices just lost 1.7L off his cars value basically.

Took the words right out of my mouth. Existing Jazz owners just lost over a lakh on the resale value of their car. Im not sure what his logic was in deducing that this will increase resale value.

I'd be feeling extremely shafted if I was an existing Jazz owner who bought a car at a ridiculously inflated price. The old adage about a fool and his money comes to mind.

[pgsagar]

Originally Posted by adimicra

This is a clearance sale and not a price reduction.

Whatever. But once stock is cleared, Honda won't have the luxury of scaling prices back up again. If they do, it will immediately be met with sales fall. Most have always been of opinion that Jazz is overpriced and welcomed the reduction. Once used to lowered prices, do you think people will flock to showrooms to buy at higher prices? Me think not.

It indeed makes a lot of business sense for Honda to do what it has done. It sure may earn the ire of some disgruntled old owners, but it will bring in several new customers in its fold. Wonder who will buy i20 petrols now. In one master stroke, Honda has turned its premium hatch into a VFM.

[serious_maniac]

Walked into Dakshin Honda at Lavelle Road. They said the price was Rs. 7.5 L and its on all orders till the facelifted version gets launched. Thats about Jazz in Bangalore.

Less said about the dealer the better. Plainly discourteous, "leave it or take it", refused to give breakup of how 7.5L was arrived. I am surprised how Honda trains its dealers and despite falling sales dealers have not learned how to treat prospective customers.

~maniac

[wildon]

Originally Posted by ghostrider

Existing Jazz owners just lost over a lakh on the resale value of their car. Im not sure what his logic was in deducing that this will increase resale value.

Existing Jazz owners doesn't need to worry at all (I think). If they are selling 12-16 months old cars then this discount is justified (depreciation).

[radiokidb]

Originally Posted by serious_maniac

Walked into Dakshin Honda at Lavelle Road. They said the price was Rs. 7.5 L and its on all orders till the facelifted version gets launched. Thats about Jazz in Bangalore.

Less said about the dealer the better. Plainly discourteous, "leave it or take it", refused to give breakup of how 7.5L was arrived. I am surprised how Honda trains its dealers and despite falling sales dealers have not learned how to treat prospective customers.

~maniac

Even I spoke to dakshin but the guy I spoke to on the phone was courteous enough. Didn't have any details though. First told me its valid on new orders but when I called back now he wasn't sure. Said he would check and let me know.

Originally Posted by wildon

Existing Jazz owners doesn't need to worry at all (I think). If they are selling 12-16 months old cars then this discount is justified (depreciation).

If they are indeed 2010 cars then I am not interested. But if they are 2011 cars that's just a few months old, that would be ok. Lets see, will check out the VIN

[snorting bull]

Here is a quote I got for Sundaram Motors, Chennai for a friend of mine.
Ex Showroom - 5.69
Insurance - 21K
Road tax, reg and misc - 65K
Vat @ 14.5% - Not sure on what item above.
Overall - 6.8 is the quote for Jazz Select

[ghostrider]

Originally Posted by wildon

Existing Jazz owners doesn't need to worry at all (I think). If they are selling 12-16 months old cars then this discount is justified (depreciation).

Not sure how you arrive at that conclusion.

If I bought a car (something with a good resale value like a Honda / Toyota / Maruti) for 8L, then after 2-3 years, I'd expect to lose about 25-30% on the resale price. Case in point is the Swift. Go through the used car prices of Swifts, and you'll find that the resale value is significantly higher than the depreciated value.
Now, if the cost of a NEW car is 25% lower, my resale value over 2 years cannot be at a 30% reduction.... more like 50-55%.

[yogesh.janghel]

Originally Posted by snorting bull

Here is a quote I got for Sundaram Motors, Chennai for a friend of mine.
Ex Showroom - 5.69
Insurance - 21K
Road tax, reg and misc - 65K
Vat @ 14.5% - Not sure on what item above.
Overall - 6.8 is the quote for Jazz Select

I think most of the Jazz buyers ( inspired from Adimicra blogs ), got discount of 80k to 1L. I got around 80K in Bangalore (last year Aug ). The breakup of Sundaram motors confirms that the people who bought Jazz last year around ( with 80K to 1L discount ), have lost around 50K. 1.75L is a misleading figure, IMO.

[adimicra]

Originally Posted by ghostrider

Not sure how you arrive at that conclusion.

If I bought a car (something with a good resale value like a Honda / Toyota / Maruti) for 8L, then after 2-3 years, I'd expect to lose about 25-30% on the resale price. Case in point is the Swift. Go through the used car prices of Swifts, and you'll find that the resale value is significantly higher than the depreciated value.
Now, if the cost of a NEW car is 25% lower, my resale value over 2 years cannot be at a 30% reduction.... more like 50-55%.

You have a point. But most of the Jazz owners have bought the cars at a discount already. So, the damage is more like 75k-1Lakh which is like 10-12% of the car price. That's reasonable depreciation for a year.

But currently, we do not have any idea if these cars are 2010 manufactured or not. My guess is they are NOT. In that case, the depreciation is huge and will pinch all existing owners.

Originally Posted by snorting bull

Here is a quote I got for Sundaram Motors, Chennai for a friend of mine.
Ex Showroom - 5.69
Insurance - 21K
Road tax, reg and misc - 65K
Vat @ 14.5% - Not sure on what item above.
Overall - 6.8 is the quote for Jazz Select

what was the earlier discounted price at chennai?


The way prices are varying across cities and dealerships and the lack of transparency and any official communication, this does indeed look like a clearance sale.

My guess is Honda will launch the facelift shortly and reorganize the different versions - have some lower spec versions etc with less features. And I expect the lower spec versions to be priced similar to the discounted prices currently being offered.

Let us see - this is turning into some suspense drama.

[RavenAvi]

Originally Posted by adimicra

The way prices are varying across cities and dealerships and the lack of transparency and any official communication, this does indeed look like a clearance sale.

My guess is Honda will launch the facelift shortly and reorganize the different versions - have some lower spec versions etc with less features. And I expect the lower spec versions to be priced similar to the discounted prices currently being offered.

Let us see - this is turning into some suspense drama.

And the suspense is rising!

I just received email from the ASM of Shubh Honda, with his quotation. He called me about an hour back and said he was quoting the same price and everything else as it was before the price-cut, and was going to mention this "price-cut" as a separate discount. He said that Honda top-level honchos have instructed him to do any/all quotations in this manner, and he has to mention it as special cash discount, because Honda will not announce this officially as a price cut at any given time.

Very interesting, I must say. Here is his quotation to me -

Model - 1.2 Jazz Select
Ex-showroom - 7,56,500/-
Logistic Charges - 4,500/- (not sure what this is...transportation?)
Comprehensive Insurance - 18,000/-
Road Tax Registration - NA (I told him I will get it registered at Jdp)
Outstation Registration - 1,000/- (extra)

On-Road Price - 7,80,000/-
Special Cash Discount - 1,57,500/-
Final Price - 6,22,500/-

The RT should come to around 42K, so the car will cost me 6.66L OTR, in the end.

Now we can definitely say - this is indeed a clearance sale, to make way for a future facelift involving either 1.2 or 1.5 variants, or both.

Expect the future facelift to come at a new reduced price of about 6.15L starting (ex-showroom, base 1.2 model), and stretching till around 7.5L (ex-showroom) for the top 1.5 iVTEC variant (that is, if they launch it as they claim).

[biyer]

Originally Posted by adimicra

That is correct.
I spoke to the CRM guy at the dealership.

.....

According to the CRM guy, the number of Jazz available for the sale is around 700 and it should be over in a day or two.
Let us see how the story unfolds.

Originally Posted by ashok_lat

...
As told by Sales person, there are only 300 Odd Jazz's in company and they are clearing now.

Originally Posted by ashok_lat

This is basically because of a new model getting launched in a few weeks(to my surprise). The new model will have same engine spec but has a auto Transmission. The changes will be not too apparent but this will have a auto folding mirrors and LED tail lamps. As told by Sales person, there are only 300 Odd Jazz's in company and they are clearing now.

It doesnt make sense. If they have only 300 OR 700(as per Adi's inputs) Jazz's left- how many did they manufacture the past 24 months? 13352 cars?

(Past official sales figures indicate a total sales of : 13,052 cars spread over 24 months.

June 09- 2032, July 09- 1037, August 09- 1029 ,Sep 09-504 , Oct 09- 830, Nov 09-546, Dec 09-269, Jan 10-490, Feb 10- 233, Mar 10- 571, Apr 10- 338, May 10-205, Jun 10-507, Jul 10 -514, Aug 10-593, Sep 10-649, Oct 10-332, Nov 10-330, Dec 10-269, Jan 11-579, Feb 11-400, Mar 11-152, Apr 11-112, May 11-170, Jun 11-361)

[biyer]

Originally Posted by Ravenblood

Just spoke to the sales executive at Costal Honda Goa, Offer me the Jazz Select for 6.27 OTR, and if i book with this week, Free anti rust treatment, & 50% discount on insurance if i take it through the dealer.

Brilliant move honda.!!!!


There is a Nov 2010 select model as well, for which the offer is Free road Tax + Insurance+ Some basic accessories, works out to something like 5.80 after all discounts... Hows the deal guys, i normally would keep the car for 4-5 yrs..??

Whatttt? 5.8 lacs on road for a Jazz and you are asking exactly whattt?? Unbelievable info coming through guys...I dont trust any of these info anymore...no offense to your contacts, its just that the ex-showroom price itself is swinging wildly from 7.5 lacs to less than 5.5 lacs...its just crazy!

At any rate, to answer you question, go ahead and buy it if its not an accident car!

[biyer]

Originally Posted by RavenAvi

An update - The Rs.1/- insurance is no longer available for the Jazz after this price-cut. Honda Insurance should come to around 17-18K.

Warranty of 2 years stands. Roadside Assistance is a paid affair from now on, so is Extended Warranty.

Please check with your local dealerships.

If you have to put a monetary value to the 2 yr warranty and road-side assistance- how much would you give it? I have no idea...

[snorting bull]

Originally Posted by adimicra

what was the earlier discounted price at chennai?

The last month rate I saw was 6.6 Ex Showroom.

[fuel_addict]

Originally Posted by wildon

^^ No, i mean 2010 early manufactured models (January - June)

Would Honda still be carrying inventory of those cars? As a customer, I would be wary of buying a 2010 manufactured car in the second half of 2011.