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View Poll Results: Please vote on this MULTIPLE choice poll
I simply prefer "brand new" and am willing to pay a premium for it 218 18.14%
The risk (being cheated, reliability, accident / flood damage etc.) 684 56.91%
Too much effort to find a car, TD it, get it checked... 356 29.62%
Social image / stigma in my circle 56 4.66%
Used car loans are difficult and / or pricey 145 12.06%
My company will get lower depreciation benefits 17 1.41%
Worried about the maintenance costs 276 22.96%
I don't have the knowledge or expertise on used cars 193 16.06%
The model I want isn't available used (e.g. Hector / Triber) 44 3.66%
Organised players still have limitations 34 2.83%
Try convincing my spouse / family!!! 96 7.99%
Other (please specify in your post) 42 3.49%
Are you kidding? I LOVE pre-worshipped cars 338 28.12%
Multiple Choice Poll. Voters: 1202. You may not vote on this poll

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Old 14th January 2020, 10:32   #166
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Default Re: So, why won't you buy a used car?

For me, it all comes down to the non-existent Indian legal system, grey market for spurious auto parts and the reluctance of most car owners to maintain their cars as per schedule at the authorized dealer.

I work with an educated and well to do bunch of people and yet most of them will skimp on servicing costs by either delaying the service or getting it done at the local garage even for new cars under warranty. I just can't understand this mentality. The argument being that I only drive it for a few years and hence why waste additional money on it. Heck, people don't even want to spend on tires. Most will replace only the worse tire at a given time

Then comes the legendary Indian grey market for parts. A majority of the local garages will not be able to procure OEM parts and hence will end up using spurious parts from the local market or worse use Indian "jugaad" to fit an old/different part when they aren't able to procure the right part.

And finally if you do end up getting cheated, there is usually no swift legal recourse available and the long drawn out process means most will just write off the loss and move on.

Sorry, but a majority of Indians have no idea of car maintenance and I have no interest in subjecting myself to the risks of getting saddled with a money sink.
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Old 14th January 2020, 10:47   #167
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Default Re: So, why won't you buy a used car?

Let me just put this out here - I saw some fellow members mention on this thread that the used car market in India isn't matured enough, whereby sellers cheat the buyers.

From my 4.5 years in the US, let me say that the story is the same over there as well. A certain company named CarFax purportedly sells buyers background info on the car they're evaluating. With a $40 CarFax report, many buyers happily feel lulled into a sense of safety and they happily buy used cars that way.

What if I told you that there is an organized racket that bypasses even CarFax? I became a popular used car dealer's friend in Massachusetts. He showed me the online dealer-only auction portal where he and other dealers pick cars up. There were so many cars with statutory warnings of "Grade 1 Major structural damage" or "Falling objects - Damage" etc. He also showed me the accompanying Carfax reports on the same portal for these damaged cars and they were "clean". How? Some bodyshops that work on wrecked cars simply do not report these damages to Carfax. Simple.

What I'm trying to say is - the fundamentals of used car buying remain the same wherever you go, in India or elsewhere. You need to assume that the seller is guilty of hiding gremlins under the hood or any major damages. The onus is on you to properly evaluate the car you're looking at. Getting an independent mechanic to look at it is one way. Getting hold of the car's records through the OEM's service network is one (but not infallible) option. Paying an OEM authorized service center to do a 100 point inspection on the car is a very good option.

The pain you go through is well worth it, after all.
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Old 14th January 2020, 11:30   #168
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Default Re: So, why won't you buy a used car?

I have bought only one car till date and that was 10 years ago.I plan to keep it for 5 more years. Have regularly cleaned,waxed, serviced it and it still is as good as new.

If I buy a second one, I will buy a new one again and keep it for 15 years. So with my kind of psyche it simply doesn't make sense to buy a used one.
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Old 14th January 2020, 11:38   #169
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Many people spoke about the ridiculous money being asked for mass production cars , albait in some cities for Hatch segment. Fair point nevertheless.

But I am afraid that barely anyone spoke about the growth opportunities on the capital saved by buying a used car. A lot of money is saved if one goes beyond popular hatches, which can translate to somewhere between 50% to 75% of total OTR capital for a new car. Now that's sure is a hell lot of money to invest. and then - Money begets money.

Guess, not many also spoke about what will be wise for anyone to do, when one does not have enough capital to purchase a new. What one should do when buying a second car for point A to B sort of travels. Should the person be taking a loan and paying interest, than saving money, investing, and generating income? As such car is a liability.

One more point to ponder - for someone starting to drive newly on our streets (war zones, sorry), will a used one make more sense ?

Quote:
Originally Posted by locusjag View Post
What if I told you that there is an organized racket that bypasses even CarFax? I became a popular used car dealer's friend in Massachusetts. He showed me the online dealer-only auction portal where he and other dealers pick cars up. There were so many cars with statutory warnings of "Grade 1 Major structural damage" or "Falling objects - Damage" etc. He also showed me the accompanying Carfax reports on the same portal for these damaged cars and they were "clean". How? Some bodyshops that work on wrecked cars simply do not report these damages to Carfax. Simple.
Valid observation, buddy. And true on what care should be taken. But we being we, with a typical misguided mindset of "oh thats a waste", are not so keen to spend 1500 bucks repeatedly on evaluating 3-4 cars in an authorised station, before deciding on one. The mindset that draws people back is like "ah come on man, why would I spend 1500 bucks on something I may not buy eventually ? ". Have seen it with my own friends who are very well earning

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Old 14th January 2020, 11:53   #170
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Default Re: So, why won't you buy a used car?

Ah! The thread which should have been started years ago is now up. I'm glad.

Having bought over 6 cars in the used market since the last 6 years, I can vouch for their stable duties provided you do the right checks before picking up a used or rather pre-worshiped car.

Out of the 6, 3 were automatics and currently I have 2 of those automatics doing duties at home. one of them is a CVT and the other a DSG. Neither of them had issues since the time I got them.

Yes, Finding good cars is a pain but it all pays off when you finally find the car. Just make sure you calculate the amount of money you have just saved by buying a pre worshiped car. The efforts that you put in will pay.

This not just applies to cars, it is even more true with superbikes. Having bought 5 pre worshiped superbikes, I can vouch for them as well. You get to save big bucks on bikes more than cars.

Having said all of this, that new car smell and the sense of truely owning a car and having a challenge with building that bond with only new cars and not with pre worshipped cars is what a good chunk of people want. I totally recommend people to get new cars because if people stop buying new cars, how will the rest of the people who like preworshiped cars be able to buy cars ? :P
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Old 14th January 2020, 13:24   #171
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Default Re: So, why won't you buy a used car?

I like good cars. And I like good deals.

My personal order of preference:
1. Company car lease transfer
You get tax benefits as well as a bargain price. And company leased cars are usually driven by people who maintain them properly. What's not to like? The catch is not many companies have a car lease program. Even less have a sizeable population of employees availing it.

2. Used car directly from owner
You can buy the same car at a lower price or a higher car at the same price. Plus cars have become more reliable over the years. And if the car is serviced on time and not abused, most issues are easily fixable. If the car is less than 3 years old and has run <30k km but serviced on time then very few things can go wrong with it. If the owner is selling due to financial constraints/doesn't need the car anymore/moving to a different city or country then that makes it more attractive because that signals that the car is good but they can't keep it.

3. Company car lease - new
You don't always get the car you want using #1 and #2. So if your company offers a car lease, it makes sense to add another 70% to the 30% you're already paying in taxes and get a car to show for it. Plus you can avail tax benefits for fuel, maintenance, tyres, accessories, driver. It's the biggest way a salaried employee can save taxes. Even house loan EMI has limits to tax benefits. Car loan EMIs don't.

4. Used car from dealer
The majority of dealers are, unfortunately, crooks. And the majority of cars are not in a good condition. And almost all of them are overpriced.

5. New car on loan
Cars are depreciating assets. And expensive ones too. So paying extra because of a loan for an asset that looses value quickly over time is not wise, financially. I'd rather buy with cash. Or not buy at all.


My experience:
When I was buying my first car, I knew very little about cars. So I had to take the safe route. I looked for a reliable manufacturer and a popular model. A car on a company lease of 4 years that is being transferred around the 2 year mark gives an almost new car at a bargain price plus tax benefits. I was looking for either a Hyundai i10 or a Honda City. The i10 I wanted got transferred even before I could respond. So I took a 19k km run 2 year old 2010 Honda City on a lease transfer in 2012. I have only spent on regular maintenance and wear and tear parts replacement. And upgraded whenever important parts like tyres, suspension, music system were due for replacement It's at 90k km and 9 years old now. I reckon I can keep it until it's 20 years old or it becomes a khatara or it's maintenance bills exceed 50% of the EMI of a similar new car.

When time came to buy a second car, I wanted to go the same route. But I had changed companies by then. So couldn't take a lease transfer. I wanted a fast automatic with a sunroof. The only car this side of the luxury market that fit the bill was the Octavia 1.8 TSI Elegance. I tried finding a used car but in Hyderabad, I only found two that had 40k km, 4 years at around 15 lakhs - which was too much. I found many similar ones at around 12 lakhs (which I was happy to pay) but they were all diesel. Even though it has a more reliable transmission, the Diesel has less power, lacks the multilink suspension and my 8km, 25 min commute would stress the engine.
So I finally I took a company car lease for a new Octavia 1.8 TSI L&K. In addition to a new car with tax benefits, I got the virtual cockpit, ambient lighting, Canton woofer, driver fatigue alert and a color of my choice.
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Old 14th January 2020, 13:31   #172
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Default Re: So, why won't you buy a used car?

We have had two used cars in the family so far - Maruti 800 and the more recent A-Star Automatic (current ride).

Both cars have been super reliable and in that sense we have been fortunate not to have spent above and beyond our budget. However, finding these cars (at least in 2006 and 2012) was not an easy task.

Since I like keeping my cars stock, I have noticed that you cannot really 'spec' up the car to your liking. You have live with the trade offs the previous buyer decided - wanted a higher/lower spec in the same car? Well, you either have to start searching all over again, or compromise.

I have noticed that prices in Bangalore for used cars is not reasonable in most cases. Interest rates tend to be on the uglier side as well.

Would I still go for a used car? Probably. My next purchase would definitely be a long process - evaluating new and used options more thoroughly.
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Old 14th January 2020, 17:04   #173
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Default Re: So, why won't you buy a used car?

Well, to me, it's like own vs neighbor's child. However bad your own child behaves you know how to handle the craziness. Moreover, the craziness is kind of part of your own gene. On the other hand, neighbor's child misbehaves a little, you (and your better half) start judging!

My point is, your new car grows all the niggles over time, under your supervision. You learn to overcome/adapt/ignore such things with a calculated judgement. Additionally, such things don't surface over-night, and by the time they do, you already are comfortable around them.

I don't want to see such niggles on the day/week/month I buy a car. And chances of getting them, as a complimentary package, are higher with pre-owned car than new one.

I know, I can't raise neighbor's child as my own, for sure!
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Old 14th January 2020, 19:27   #174
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Default Re: So, why won't you buy a used car?

Voted other for a very weird reason - all the cars that we own have a specific registration number. Trying to find a used car with a specific registration number is too much effort, so is buying a used car from another state and getting it re-registered with the number of our choice. So we buy new and pay a small premium for the registration number.
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Old 14th January 2020, 19:59   #175
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Default Re: So, why won't you buy a used car?

Quote:
Originally Posted by akshye View Post
My point is, your new car grows all the niggles over time, under your supervision. You learn to overcome/adapt/ignore such things with a calculated judgement. Additionally, such things don't surface over-night, and by the time they do, you already are comfortable around them.
I thought we all get baby sitters in the form of authorised service stations, or neighborhood garages ?

And, I (instead) also thought this to be a comparison between having my own child and adopting one if I can't have my own. I am sure I will love my adopted child no less.

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Old 14th January 2020, 21:12   #176
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Default Re: So, why won't you buy a used car?

Hi GTO,

I admit to being a ardent believer of your opinions about Second hand cars and lateral upgrades that translate into huge cost savings.

In all honesty, my reasons for not wanting to go the second hand route are ( specific to the Indian Car Market )

1. The laws of our land are not strong enough towards customer protection. The fear of being cheated out weighs all other reasons ( Not that the dealers also cheat out-rightly ). It just feels the safer of the two evils.

2. Its just too much of a hassle to find a car on olx, dealer lots or classifieds (segregate fake posts from genuine listings) and then trying to arrange a TD, find a trust worthy FNG / Mechanic to evaluate and then the whole thing about price negotiation

3. This is my "Other Reason". For the price point that most cars in the 8 to 12 Lac price point, the cost difference between new vs used is simply minimal to justify the purchase, while coming to think of the hassles related to points 1 and 2.

I guess an exception to that would be, I know the person personally from work or a friend, I am aware of his driving habits and he is probably going on-site and selling his car, which I might be interested in. That is probably a fringe example for things to fall in place.

I am sure with higher end / premium and luxury cars, the cost difference is huge and makes sense with the lateral upgrade, but I guess that also calls for a lot of leg work in the background.

Interestingly, I just bought a CPO GLC300, while presently being on a US Deputation.
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Old 14th January 2020, 22:32   #177
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Default Re: So, why won't you buy a used car?

I always buy pre-owned. It just makes more economic sense - but only if you pay cash down instead of taking a loan. Why pay interest to a bank on a depreciating asset? Recently purchased a 2-yr old Grand i10 Asta Petrol done 17k, at 60% of the on-road cost of a new one. Third free servicing was yet to be done and I had 1 year warranty remaining. What's not to like?
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Old 15th January 2020, 10:55   #178
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Default Re: So, why won't you buy a used car?

Till now all my cars were brand new and I do not trust used cars. My last purchase Infiniti QX50 (in UAE) is a used car. Somehow the minute I took a TD, I had the confidence that its a good car. Also the car had warranty and service package for 3.5 more years. This means peace of mind.

As price of the used cars is much cheaper, I had in the past (in India) had tried my hand on used cars. Never got a car which was worth it. I found people hiding too many facts and in the end loosing your trust.
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Old 15th January 2020, 14:05   #179
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Default Re: So, why won't you buy a used car?

Bought a 2013 Fortuner that had done 88k kms and I knew some issues beforehand during its evaluation by Toyota.

I was mentally prepared to spend 1.5-2 lacs to get the car in top shape and was able to get this done at a much lower price.

Wife wanted a particular color and I wanted the 4x4 variant so I knew I may not get the car in perfect shape and accordingly prepared myself to spend more.

Was there legwork involved? Yes.

Was it worth it? Absolutely!

The car is in top shape now and while there were a few surprises I always knew what I was getting into.

Anybody who thinks a used car cannot throw any surprises is fooling themselves.

But is there merit in doing a little legwork if you can save huge amount of money in the long run, you bet!

In fact, I'm super glad that there were few issues with the car as I'm a learned man now and would be able to take an even better decision next time.

I'm also more experienced when it comes to car mechanicals, part costs, best places to source genuine parts but at 'lower than A.S.S' price. All in all its been a great learning experience and I'm really happy that I bought a used car.

Would I buy a used car again? Absolutely! I just can't let the learning go to waste and would be able to get more bang for buck next time so I'm super excited to buy another used car whenever I decide to.
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Old 15th January 2020, 17:06   #180
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Default Re: So, why won't you buy a used car?

I voted for "The risk (being cheated, reliability, accident / flood damage etc.)". These days one cannot be too careful, the sellers will always try to put one over you. I know of a close relative who was conned some years back. With that kind of incident in mind I believe its simpler to buy a new car. Another big issue is my spouse who will never let me buy a used car, there is no getting around that, period. My 1st car was a used one, but after that next 4 have been new.
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