[Aditya]

MG Motor India has launched MG Reassure - its certified used car vertical in India. This unit will operate through MG Reassure dealerships.



MG claims that the used vehicles will be assessed through 160+ quality checks and all necessary repairs will be carried out before their resale. The company also claims that it will undertake an evaluation for the pricing of the used vehicles. MG car owners can also sell their MG cars without any obligation to exchange them for a new MG vehicle.

Used MG cars sold by MG Dealerships will come with a 3 year and unlimited km warranty, 3 years roadside assistance, and 3 free services.

According to the company, based on industry reports, the current residual value of the MG Hector after a year of use is high.

Link to Team-BHP News Article

[octane1002]

Yes, what better way than this to diversify into the used car business which is seeing a boom of sorts after the pandemic.

A high margins business (as all manufacturer backed used car outlets offer extremely low pricing to the seller) which doesn't need any additional investment from the dealer principal (he already has the showroom frontage which he can commonly use for the used cars/exchanged cars). Good move.

Though I'd definitely like to see them offer the claimed 95-100% residual value to an MG owner who comes in to trade his one year old MG

[kamilharis]

Good move from MG. Which means now almost all the mainstream carmakers are having their own used car division. So which carmakers misses out on this now?

Originally Posted by Aditya

Used MG cars sold by MG Dealerships will come with a 3 year and unlimited km warranty, 3 years roadside assistance

All MG cars sold since the introduction of MG brand came with this warranty and RSA as standard right ?

So technically all the MG cars currently running on road are already on warranty and it is just carried over to the new owner.

[coolkurt]

Originally Posted by kamilharis

All MG cars sold since the introduction of MG brand came with this warranty and RSA as standard right ?

New cars come with 5 years warranty and RSA.

[ramnaresh_2000]

Originally Posted by Aditya

Used MG cars sold by MG Dealerships will come with a 3 year and unlimited km warranty, 3 years roadside assistance, and 3 free services.

According to the company, based on industry reports, the current residual value of the MG Hector after a year of use is in the range of 95-100%.

Wow this is how you come out with a bang and all guns blazing. The biggest concern a used car buyer will have is warranty and MG is addressing this. MG sure does it's market research. I had seen marketing stunts in re-sale dealers offering 6 months warranty on used cars, they will surely curse MG for this.

Can someone throw some light on the 95-100% residual value? Does it mean 95% of value for a person selling his MG? I am guessing this value is on ex-showroom price.

[alikidwhy]

This is going to be much better than Mahindra’s half hearted attempt at capturing the used cars business.

Currently, Truevalue and Cars24 come to mind as the biggest players in the industry and rightfully so; Truevalue cars are usually trouble free and just as good as new ones which is why one doesn’t think about paying a premium for fuss free ownership (few relatives have trusted MS Truevalue).

Mahindra wanted to make a used car empire spanning all makes and models, a multi brand if you may but lack of transparency and abused vehicles turned buyers away (I, being one of them).

Cars24 I believe is good for *purchasing* a used car since the listings are transparent and already highlight most of the issues and any novice would appreciate the same. I have checked out a few cars with Cars24 while purchasing mine (didn’t purchase with them in the end) and they were good vehicles and the listing covered pretty much everything wrong with the car. One problem is inventory management is trash wherein one vehicle you like and book can be sold and still show up on the site and with the spokesperson.

MG will definitely increase the trust of new buyers and used car shoppers alike.

I wouldn’t take too much time to mention used car services by Ford, Toyota and the likes. No personal prejudices, the lack of stock and sub par experience were the deal breakers for me.

[ajmat]

Originally Posted by Aditya

According to the company, based on industry reports, the current residual value of the MG Hector after a year of use is high.

Link to Team-BHP News Article

I read somewhere that the rate was 95%-100%. Absolute poppycock. If that was the case, I would be buying and exchanging Hectors every 6 months! I did a quick scan of OLX and CarWale and lo and behold, loads of Hectors around , majority asking around the Rs 20L range. Some outliers asking much lower around the 14-17 L mark.

The claim tallies with the second hand asking price which is delusional. If they are selling at that price, am certain the OLX/carwale ads will disappear next week due to the demand. I would bet otherwise!