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Old 28th October 2020, 16:41   #16
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Hi guys! Really happy to join the forum, feels great being finally accepted into the community that I hold so dear!

Ever since I read the ever so popular threads on The beauty of lateral upgrades, and The best used enthusiast cars under 6L, I've been pretty much convinced on the pre-worshipped car route.

I shall be taking taking the plunge in Q1 2021, once I graduate as a doctor. My requirements of a manual hot hatch qualify the GT TDI and the Figo TDCi, both which satisfy my enthusiast needs, with some tweaking ofcourse (maybe after a remap? ).

The only thing that scares me is the reliability concern and high service costs for the old Germans in the used car market.
Does it still make sense to go the used route, or take the traditional approach instead?
Thoughts and suggestions are appreciated!
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Old 28th October 2020, 16:42   #17
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Bangalore is not the market for 1-3 year old used cars. The price difference between used and new is negligible compared to the peace of mind, lower interest rates that a new car could be had at. This difference becomes even small if you pick the right time to buy a new car which will come with additional discounts.
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Old 28th October 2020, 16:46   #18
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

I would like to believe that I am like the torch bearer of these threads ( compiled by GTO ) about the importance of buying used cars ( as a first car) to my relatives and friends. In-fact my first car purchase was a used one at a meagre 1.3 lakhs , which had ABS/Airbags , 1.6 litre engine with 100 horses. Not even hatch backs costing north of 5 lakhs had airbags or ABS then ( forget 100 horses).

But unfortunately , for people like me , who are salaried , the buck stops there. Used car prices in Bangalore are way too high for "Almost new" cars. Where in one can buy a new one instead. For example , a 2017-18 Bolero power plus were still going at close to 7 lakhs. In absolute EMI terms the difference wont be much.
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Old 28th October 2020, 16:46   #19
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Quote:
Originally Posted by GTO View Post

But buying a used car that is <3 years old is another level of "pre-worshipped". Truth is, the last 3 pre-owned cars that I myself bought were all:

Under 3 years old
Had <20,000 km (two of them had <10,000 km)
Still covered by the factory warranty
Up to 40% cheaper than new!
Well GTO, you just read my mind! These are the exact reasons which were in my mind when I was shopping in used car market.

FYI, I bought pre-worshipped Duster 85 PS in 2018, RxL explorer edition, 2016 Registered, 8500 KMS on ODO for 8.2 lakhs from Trident used cars Bangalore. What more?

I had warranty covered. During my ownership, I replaced the defective steering rack assembly for free of cost. It is been pleasant experience with Duster till date and didn't see any major issues. In year 2018, new Duster on-road price in Bangalore was around 13 lakhs. I saved 5 lakhs straight away with pre-worshipped car. For 5 lakhs, you can fuel and service the Duster for more than 5 years.
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Old 28th October 2020, 16:55   #20
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Even when I searched for a used car in Bangalore, they were all quoted quite high.
But recently a month or two back, I heard my friend say that his friend bought a used BMW 320d, 2017 model with 28000 kms on ODO for 12 lakhs from a known contact and I got shocked.
I will try to get more details on this deal.
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Old 28th October 2020, 17:07   #21
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Quote:
Originally Posted by GRAND23 View Post
Well GTO, you just read my mind! These are the exact reasons which were in my mind when I was shopping in used car market.
I had the same words as well!! I had two experiences with pre-owned cars in the same category and worked out well

1) For my first car, I purchased a 3 year old Santro for 2.4L from Trident Pre-owned and had owned it till it turned 10. I sold it for 1.2 lakhs and it was worth the drive for 6 years.
2) I exchanged my first car with 1 year old Swift Dzire with Bimal for 2 Lakhs less than the new car price. Now it is serving very well and nearing 9 years now.

In both cases it was purchased from Pre-owned dealer showroom with full history and free services and I thought it is worth the premium paid vs direct dealing with owner.

On a watchout for "nearly-new" car for my next upgrade when my current drive crosses 10 years ownership.
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Old 28th October 2020, 17:43   #22
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Great thread GTO, my thoughts are in line with yours. Until few years ago, I wouldn't have bought into this idea. But it's article like this that have opened my eyes and more so the fact that you also mentioned - car do age much better these days.

I also find that in the higher segments of luxury and sports cars, people are now more careful and respectful of their machines since they are also paying hefty prices to purchase them new.

However, the process of purchasing a used luxury/sports car at the right price < 3year especially is far from easy. The price you see on online portals are not in line with the depreciation levels. Infact at times, owners are trying to sell the car at the price they bought it as the sticker price might have gone up and they also had a discount benefit which is never clear.

I hope the process becomes easier. BMW's online auctions are a great way to find a good deal on sparingly used cars but its not easily accessible to all.

In the past when I was keen at getting a sparingly used car, I managed to get a good deal on a new one that the savings don't justice going used. Hoping to take the plunge sooner than later.
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Old 28th October 2020, 17:57   #23
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Quote:
Originally Posted by saikarthik View Post
I heard my friend say that his friend bought a used BMW 320d, 2017 model with 28000 kms on ODO for 12 lakhs from a known contact and I got shocked.
That is a steal deal if the car is in good condition.

For 1-3 year old examples, expecially in Bangalore, the depreciation is less in general.
I would rather buy a new car if difference is less.

I got a 4.5 years old Honda City 2010 VMT model for 5.3 Lakhs from an individual which had 44k on odometer in 2014.
I am still using it, now odo is at 118k and no plans of selling.
Nowadays, I feel the used car prices have gone up compared to 5 years back.
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Old 28th October 2020, 17:58   #24
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

This article is exactly what I needed to reinforce my belief and my jump from getting a new vehicle to a slightly used one.
I am looking for a sub compact SUV and was delighted to find so many Nexon and EcoSport in the market. Surprisingly, there are a lot of Venue too!!
While these all seem reasonable quoted and after some negotiation might offer a good deal, Brezza is one car where I have seen everyone quote much higher than the market standard. Not sure why that is.
For now though, I have settled my focus on getting S-Cross 1.6. With tyres, alloys, paint updates and possibly an engine remap, I'll have a car that'll keep me happy probably for the rest of its life and even more!!
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Old 28th October 2020, 18:24   #25
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Not just Bangalore, used car prices are soaring here in Hyderabad as well. I'm not sure if it is the pandemic at play and people wanting to go in for cheap used cars or something else.

Since depreciation is a function of the original price, I feel this logic makes much more sense as the segment keeps climbing.

You can get a 2 year old 530d run around 20K km for much less than the cost of a new 320d.
A similarly run Compass or City could be purchased for 30% of its initial cost.

But in the case of a mass-market Maruti Baleno or Swift, the difference isn't so obvious.
I was shocked to see the prices of used Brezzas in particular. They are insanely high.

Another aspect is whether you're going to buy the car as a private buyer or as a business entity to claim depreciation benefits.

Even in the case of a private buyer, if you're going the route of a company lease, then it is a completely different story altogether. Some companies bear the road tax and insurance, while the employee will have to pay the residual value to the company at the end of the lease term. In that situation, you might be better off with a newer car. But with unpopular brands (read: except Maruti/Toyota), the used car route makes a lot of sense especially as you cross the 10L mark.

Last edited by Vibhav-Van : 28th October 2020 at 18:26.
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Old 28th October 2020, 18:30   #26
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Great thread - I've been an ardent follower of buying "Almost New" cars. Cars of today (for that matter cars built in the last decade or so) age well and are more reliable than ever. The last 3 cars which we have bought and continue to have fall in this category:

2007 Cedia in 2009 (30 months) with 29k on the odo for 55% of new car price;
2015 Jazz V-AT in 2017 (15 months) with 11k on the odo for 70% of new car price; and
2017 XUV W6AT in 2020 (33 month) with 22k on the odo for 45% of the new BS-6 car price. This was probably lower since the car had undergone a facelift.

Bangalore is a tough market for "almost new" cars simply because of the high new car prices, the relatively high disposable income and nature of population where quite a few people move in or out of the city every few years - leading to more transactions.

Prices in Delhi and Mumbai are far more palatable and the variety of "almost new" cars in these cities is far better. Having said the same, if you look long and hard enough (which I did) there are good deals in the market. When it comes to hatches/ entry level cars it probably makes sense to buy new since the prince difference in absolute terms is not much.
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Old 28th October 2020, 18:43   #27
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Nice write up but I for one had a very hard time getting finance for a 3 yr old Ford Endeavor. I tried HDFC "I was pre-approved for a 19lac car loan but not a used car loan" and in the end they offered me 7-8lac at almost 25% interest. SBI said no for any instant car loan since I was self employed and said put application. ICICI was better than HDFC with interest rate @ 22.5%.

I ended up with a new Compass @ 9% HDFC Pre-Approved loan.
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Old 28th October 2020, 19:26   #28
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Interesting that the variations between different cities make buying lightly used either a good deal (Bombay) or a bad one (Bangalore).

Personally, I'd go for either brand new or reasonably well-used e.g. 25-35,000 km on the clock. Such cars don't give you the "like new" feel but I'm usually okay with that. Most of the other benefits (factory warranty, cared for by official A.S.S., etc.) apply even at this point.
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Old 28th October 2020, 19:32   #29
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

Used car rates for 1-2 year old cars in Bangalore are insanely high, makes sense to go for newer model considering factors which provide peace of mind.


Quote:
Originally Posted by Vibhav-Van View Post

But in the case of a mass-market Maruti Baleno or Swift, the difference isn't so obvious.
I was shocked to see the prices of used Brezzas in particular. They are insanely high.
This is probably because BS4 Brezza was diesel only, people wanting diesels (Read - Mile Munchers) will be ready to pay the premium compared to newer petrol's maybe!
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Old 28th October 2020, 19:45   #30
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Default Re: "Almost-New" used cars! The logic & beauty of buying 1 - 3 year old pre-worshipped cars

I am on the positive end of the concept behind this thread, hence related to it in the first line itself!

I purchased a 2017 CBR250R ABS in 2018, at a price of 1.4L and the CBR had exactly 850 KMs on the odometer when I bought her. New one costs 2.2L!
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