After the NANO hype dies

Archish · 25th March 2009, 15:37

MODS: if u feel this thread does not belong here. Pls move it to wherever it is right.

I was wondering. After 2 yrs, when all the NANO hype dies down, it becomes a common feature in our lifes, everyone owns one, each street has 10 nano's, a nano is a gift for your 18th birthday, What'll be the second hand value of this car?

Maybe, in 2 or 2 1/2 yrs we would be able to get a used nano for 50k.

Pls take a guess. Or if someone has a scientific way calculating pls do.

ST7677 · 25th March 2009, 18:37

An average car usually depreciates by only 20-30% in 2 years.
So what makes you think Nano will drop by 50%, I presume the car is decent enough, and there will still be strong demand for it - be it new or second hand.

mjothi · 25th March 2009, 19:01

Me thinks that the demand would be still there. Reason, it should take around 1 or even more years to deliver the car to all guys booking. If thats true, then it may even have 90% cost after 2 yrs. Lets see...

narayan · 25th March 2009, 19:22

Quote:

Originally Posted by mjothi

Me thinks that the demand would be still there. Reason, it should take around 1 or even more years to deliver the car to all guys booking. If thats true, then it may even have 90% cost after 2 yrs. Lets see...

correct and also the next lot of Nanos ( after the initial order) in all probability WILL NOT BE AT THE SAME PRICE. it will definetly be at a 10-20k premium

GS300 · 25th March 2009, 19:27

after 2 or 2.5 years, Nano will not be available at today's prices, and the value of second hand Nano will be determined in comparison with the brand-new's price. Hence, I would think there will be a support at around 1L even that time.

speedzak · 25th March 2009, 19:59

Nano will have a good stand in the used car market. Maximum depreciation will not be more than 10-15% in 2 years.

New cars will not be yet freely available.
A person who collects 1lac to buy this car will always appreciate a less priced used car.
25k less than the new car will be considered a big amount by the people who will be looking to buy this car.
For anything which costs less than the normal market prices, it is very rare to see it's price drop much in the used/2nd hand market.

These are some reasons I see for the Nano to be powerful in the used car market.

1100D · 25th March 2009, 20:10

In 2 years, once the Nano V2 is out, the used car prices of the original ones will fall more than the standard depreciation amount for other cars.

greenhorn · 25th March 2009, 20:14

soon tata will have made 1 lakh nanos , and then he will increase the price of the base version further , so i think resale values will hold for some more time. That is , unless they have the same scale of issues as teh indica V1's

harry10 · 25th March 2009, 20:47

I think Nano will be a good buy second hand and at good price as well because Tata will launch Nano diesel and Nano petrol with Abs/airbags in future so that will increase the price of Nano somewhere around M800.
Will still be a good buy considering much expensive Santro with more powerful engine doesnt have Abs/airbags yet.

avishar · 25th March 2009, 21:10

I think the Nano will have a good resale value for atleast a year and half after launch,because of the fact that demand will far outstrip supply during this period.

quicksilver · 25th March 2009, 21:12

If the prices of a used Indica or a used M800 are anything to go by, then the Nano will have a very strong resale value. Cars with a lower price tag depreciate slowly compared to the upper segments. Coupled with the demand/availability, I can hazard a guess that a used Nano will even command close to 90% of it's value after 2 years, in agreement with mjothi.

mjothi · 25th March 2009, 21:12

Just curious. The initial maruti 800 (released around 1984 for 50K??), if sold now how much it would yield? Certainly 10 - 20% less than purchase price, right?

So there is a lower limit beyond which its toooo difficult for any vehicle to depriciate.

Just my opinion.

guns666 · 25th March 2009, 21:24

there is a possibility that a used nano will be more expensive than the new one until the hype dies down (or tata manufactures more than 50k per annum)

sammyboy · 25th March 2009, 21:28

Quote:

Originally Posted by mjothi

Just curious. The initial maruti 800 (released around 1984 for 50K??), if sold now how much it would yield? Certainly 10 - 20% less than purchase price, right?

So there is a lower limit beyond which its toooo difficult for any vehicle to depriciate.

Just my opinion.

My uncle sold his old model 800 a couple of months back for 25K. He had an offer for 30k but one of his friends wanted it for his dad so he gave it to him for 25. And oh, he bought it 2nd hand from another relative who was leaving the country, in 85 (I think) for 40K.

Gagan.js · 25th March 2009, 22:02

It will take more than 2 years for everyone to get their hands on it, since they have issues with delivery.

Plus by then maruti would have decreased alto to fit in 1.5L range so some will opt for the tried and tested alto than the Tata brand with its small little problems as seen in Indica.

25th March 2009, 15:37	#1
Archish BHPian Join Date: Mar 2009 Location: Chennai Posts: 319 Thanked: 108 Times	After the NANO hype dies MODS: if u feel this thread does not belong here. Pls move it to wherever it is right. I was wondering. After 2 yrs, when all the NANO hype dies down, it becomes a common feature in our lifes, everyone owns one, each street has 10 nano's, a nano is a gift for your 18th birthday, What'll be the second hand value of this car? Maybe, in 2 or 2 1/2 yrs we would be able to get a used nano for 50k. Pls take a guess. Or if someone has a scientific way calculating pls do.
	() Thanks

25th March 2009, 18:37	#2
ST7677 Senior - BHPian Join Date: Feb 2005 Location: Bangalore Posts: 1,054 Thanked: 73 Times	An average car usually depreciates by only 20-30% in 2 years. So what makes you think Nano will drop by 50%, I presume the car is decent enough, and there will still be strong demand for it - be it new or second hand.
	() Thanks

25th March 2009, 19:01	#3
mjothi Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 3,287 Thanked: 231 Times View My Garage	Me thinks that the demand would be still there. Reason, it should take around 1 or even more years to deliver the car to all guys booking. If thats true, then it may even have 90% cost after 2 yrs. Lets see...
	() Thanks

25th March 2009, 19:27	#5
GS300 BHPian Join Date: Apr 2005 Location: Bangalore Posts: 91 Thanked: 427 Times	after 2 or 2.5 years, Nano will not be available at today's prices, and the value of second hand Nano will be determined in comparison with the brand-new's price. Hence, I would think there will be a support at around 1L even that time.
	() Thanks

25th March 2009, 19:59	#6
speedzak BANNED Join Date: Mar 2006 Location: India Posts: 4,347 Thanked: 27 Times	Nano will have a good stand in the used car market. Maximum depreciation will not be more than 10-15% in 2 years. New cars will not be yet freely available. A person who collects 1lac to buy this car will always appreciate a less priced used car. 25k less than the new car will be considered a big amount by the people who will be looking to buy this car. For anything which costs less than the normal market prices, it is very rare to see it's price drop much in the used/2nd hand market. These are some reasons I see for the Nano to be powerful in the used car market.
	() Thanks

25th March 2009, 20:10	#7
1100D Senior - BHPian Join Date: Jun 2006 Location: Calcutta Posts: 4,390 Thanked: 4,096 Times View My Garage	In 2 years, once the Nano V2 is out, the used car prices of the original ones will fall more than the standard depreciation amount for other cars.
	() Thanks

25th March 2009, 20:14	#8
greenhorn Senior - BHPian Join Date: Apr 2007 Location: KL-01 Posts: 7,745 Thanked: 4,402 Times View My Garage	soon tata will have made 1 lakh nanos , and then he will increase the price of the base version further , so i think resale values will hold for some more time. That is , unless they have the same scale of issues as teh indica V1's
	() Thanks

25th March 2009, 20:47	#9
harry10 Senior - BHPian Join Date: Jul 2008 Location: Faridabad/Delhi Posts: 2,713 Thanked: 3,628 Times View My Garage	I think Nano will be a good buy second hand and at good price as well because Tata will launch Nano diesel and Nano petrol with Abs/airbags in future so that will increase the price of Nano somewhere around M800. Will still be a good buy considering much expensive Santro with more powerful engine doesnt have Abs/airbags yet.
	() Thanks

25th March 2009, 21:10	#10
avishar Senior - BHPian Join Date: Oct 2008 Location: kolkata/bangalore,india Posts: 2,901 Thanked: 4,143 Times	I think the Nano will have a good resale value for atleast a year and half after launch,because of the fact that demand will far outstrip supply during this period.
	() Thanks

25th March 2009, 21:12	#11
quicksilver BHPian Join Date: Oct 2005 Location: Coimbatore Posts: 455 Thanked: 12 Times View My Garage	If the prices of a used Indica or a used M800 are anything to go by, then the Nano will have a very strong resale value. Cars with a lower price tag depreciate slowly compared to the upper segments. Coupled with the demand/availability, I can hazard a guess that a used Nano will even command close to 90% of it's value after 2 years, in agreement with mjothi.
	() Thanks

25th March 2009, 21:24	#13
guns666 BHPian Join Date: Apr 2008 Location: Bangalore Posts: 29 Thanked: 0 Times	there is a possibility that a used nano will be more expensive than the new one until the hype dies down (or tata manufactures more than 50k per annum)
	() Thanks

25th March 2009, 22:02	#15
Gagan.js BHPian Join Date: Mar 2009 Location: Mumbai Posts: 227 Thanked: Once	It will take more than 2 years for everyone to get their hands on it, since they have issues with delivery. Plus by then maruti would have decreased alto to fit in 1.5L range so some will opt for the tried and tested alto than the Tata brand with its small little problems as seen in Indica.
	() Thanks