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-   -   MG Hector fetches nearly 95% resale value (during exchange) - How is that even possible? (https://www.team-bhp.com/forum/indian-car-scene/232614-mg-hector-fetches-nearly-95-resale-value-during-exchange-how-even-possible-2.html)

Even if this is a paid advertorial, fact is MG is the only vendor to offer a 60 % buyback after 3 years for products in the 15-20 lakh range . Definitely gives peace of mind for someone investing in a vehicle from a new company

Necessity is a helluva mother! Hyundai had to do something similar in the wake of the 2008 sub-prime crisis in the US market where Korean auto OEMs were (and are still) seen with a jaundiced eye by customers. It is only in India that the Korean brands enjoy an elsewhere unparalleled premium brand image.

Hyundai ended up offering a complete buyback (at prevailing market rates, I suppose) of their cars if customers ever lost their job.

Hyundai also was the first (and only one, as of 2017 when I left the US) to offer a 10 year engine & powertrain warranty, when the norm was for a 6 year warranty from other OEMs in the US market.

My point is - why else would any conservative customer venture into the showroom of an unknown brand, much less a Chinese OEM in these troubled times?

Maybe. I am not disputing anything.

On another note, a few years back, I came across a few cases where well known brands had their ERP/ F&A system rigged to maintain two separate books of account (i.e. One separate version for the tax man). Not sure how it is post GST.

:thumbs up

VAT/ GST is no deterrent to frauds. But, crosslinking of output-input of vendor-xuwtomer has made things difficult now.

Let's not go offtopic, but in case of MG as someone has earlier posted, it's a case of comparison of ex-showroom price to on-road price. Apparently, MG is marketing is more aggressive here. We just need to read the finer print IMO.

I believe in this case, they have compared the ex-show room price to the trade in value of the same car. Well, the benchmark has to be on apples to apples - so the trade-in value has to be compared to the OTR (less insurance) and not the ex-show room price... if in Bangalore, that delta would be 20% for the road tax, that one would lose even if we get the same ex-showroom price.

May be it is got to do with the State/UT with the lowest road tax?

This is very funny ! Recently a famous youtuber from Kerala sold off his Hector diesel at huge loss while upgrading to a Harrier AT . Literally as per the rushlane story the customer shell off 5 Lakhs for smart to sharp with Hector to Hector + upgrade, net loss 3 Lakhs .

If MG can give 5 Lakh discounts on brand new GLOSTER , this is nothing and they hit their PR target with this thread .
MG deploys kind of fierce and eccentric marketing from the start.

MG Hector DCT is having one of the lowest fuel figures among all the Indian mass market cars, I don't think it will ever fetch a good resale in reality , OLX also reflects the same .

There are good number of MG owners looking for an exchange, hopes all of them are eligible for this offer at their nearest dealership .

I don't like the Hector much and this move doesn't affect me much regardless of its ethical standing. But kudos to MG for this. This will strike a chord with the less savvy Indian consumer who relies on front page news/WOM for his/her buying decisions. Especially in a cost conscious country such as ours.

Tata and Mahindra need to be wary of this. If such moves gain traction with the average Joe then the Indian OEMs will get buried with their reputation for abysmal resale values.

OT again but could not stop myself from commenting.

Rushlane's most articles are blatantly copied or lifted from Team-Bhp and most of the time the wording is so off, it irks you. It's like they have few interns just to go through TBhp hot threads and prepare a clickbait article out of it.

With due apologies, I would be compelled to label www.rushlane.com as a "not to be believed" forum/ website going by its track record. Just view this link below:-

https://www.rushlane.com/vehicle-scr...-12392488.html

There was panic among old car owners, who read about the automated fitness tests (post 20 years)two days back getting mandatory w.e.f. 01.04.2022. Rushlane states that each such test will cost Rs 40,000=00. Another website www.moneycontrol.com also parroted the same fee. Yesterday, as per the Times of India report on this same topic, the record was set right. It is clear that the car scrappage policy is being finalised and will be out in the next two weeks. Hence, such premature, astronomical figures being revealed create panic, chaos and affect the mental well-being of many folks who do not have the means to counter check.

The MG resale value could also be some such planted news, as rightly pointed out by GTO , just as a publicity stunt by the moneybag manufacturer and its dealer.

When a Youtuber complained about the bad performance of the MG Gloster, what MG did was pay some online news portals to basically harass the said Youtuber. With this track record, one would assume that this news is not all true.

The dealers usually play with the word "exchange bonus"; They tend to offer something extra on the old car and make huge chunk of profit on the new car. They can sell the old car for no loss no gain. It is a win-win situation for the dealer and the customer.


Off topic - my extended family had a Qualis, they bought it for 6.5 lakhs and the dealer took it for 7 lakhs after 10 years, when they bought an Innova!

Just came across this article that says that the actual amount offered by the dealer is 95% of the ex-showroom value of the car. The article mentions -

So I don't think that it will be wrong to conclude that the actual resale value was lower than 95%. Infact, it's significantly lower if the on-road price is taken into consideration.

Source

Which is equal to Fraud and misinformation? Isn't it?

Rushlane besides has a huge fan following and many people on their Facebook group apparently believed in it, as they are more or less considered a reliable source of information.

I think the government should penalize them in case they are misinforming customers with hopes of high resale value :confused:

Existing MG Hector owner upgrades to Hector 2021 Facelift, trades in old Hector at a staggering Rs. 17 lakhs

MG recently shared this press release:

It is funny to see what MG does consistently to stay in news. While the competitors are announcing XUV700 and doing media drives of camouflaged cars, MG buys back their own cars for silly sums and then does press releases!

I wonder what would be on the minds of sellers/dealers who are listing their cars on OLX at 13.5L.

https://www.olx.in/en/item/mg-hector...iid-1629115799