Dear Mods: This is my first post here. While there are threads on how ex-showroom price calculation, specific car's value etc., I have penned down my thoughts on an overarching teme based on my current observations. Please feel free to edit/remove if you feel it does not merit creating a separate post.
A close friend of mine, whom I know and share every aspect of life and who has been my most brutal alter-ego – made a declaration – “it’s not worth 35 lakhs”.
Context:
I’m on the lookout for a new car after having owned a 2011 Vento diesel. Back in 2011, I was planning to come back to India and needed a car when I got back. A large part of the decision-making was based on the information available in team-bhp on the car and I ended up buying the car, without even taking a test drive. Even then the car was a stretch, a very big one, but I took the plunge. A decade later, no regrets whatsoever.
Cut to 2021, I started off with a 25 lakhs budget and a strong personal view that I needed an SUV now. With that, I realized my options were Creta, Seltos, Harrier, Kushaq & Hector. I decided to stretch the budget further and include Compass in the mix. After taking test drives, I pretty much realized that SUVs are not for me. I didn’t get the same “feel” that I would have got while driving a sedan.
The moment I realized it has to be a sedan, sadly the options were – Verna, City, Vento, Rapid, and If I were to stretch my budget here too – the only option was Octavia. Took the test drive and I personally liked it; the family liked it too.
So, my friend and I were driving back from another test drive and he asks me if I had made up my mind about the car. I said, in the current scheme of things with what I want and what is available, Octavia is the only choice. He goes, Octavia is not worth 35 lakhs and he couldn’t explain why he felt that way. All he could say was – it doesn’t feel like a 35 lakhs car.
I have seen it here in team-bhp too, where a whole lot of esteemed members have said it's overpriced by a few lakhs. Not just this car, on a handful of other cars too. It got me thinking, what decides the worth of a car?
Value/Worth:
Dictionary definition of
Value:
how much something is worth in money or other goods for which it can be exchanged
There is a
perceived value:
The value that the customer perceives of a product based on perception or comparison to other similar products.
Value, therefore, is kind of what the manufacturer sets and perceived value is for us - customers. This perceived value is influenced by a whole lot of dimensions such as personal interest/passion, exposure, economic background, social circles, etc., And from personal observations, this perceived value changes even for an individual depending on different products/services. Ex: An audiophile would possibly find a lot more value in a high-end music system vs someone who is happy with a standard TV speaker. The same audiophile would possibly see a budget android phone as a lot more value and the person happy with TV speakers would probably have a top-of-the-line android/iPhone as they may see a lot more value in it.
The same applies to a car as well. Similar to phones, there is one available in every budget, form, and shape (some more than the other). The manufacturer sets the price (value) as they deem appropriate and we as customers perceive value based on what we need, does the car has what we need it and is it available in our budget.
Having read enough official reviews in team-bhp – there is no car that has 0 flaws (however small/big they can be). So, most of us will end up making some compromises and probably choose something that comes closest to ticking most boxes we have. If you are someone who has been able to get the car that car you want with the features you need and, in the price, you can afford – consider yourself lucky!
Thoughts?
Note: this applies largely to new cars only. For used cars there seem to be quite a few tools in determining the right price for the car.
