Quote:
Originally Posted by GTO .....
Thus, if you upgrade from a C-segment sedan to a C+ segmenter, you will spend a total of Rs. 11,55,000 over the next 5 years. OR 2,31,000 per year.
But that’s not the entire picture, is it? What we have not calculated yet is the opportunity cost of the Rs. 20,000 per month that you are blowing away toward the new car’s EMI. If you don’t upgrade, that money can instead be invested. Even if reasonably invested, the saved Rs. 20,000 per month will become a whopping 15 lakh rupees at the end of 2013!
Net net, retaining your current 5 year old sedan (over a 12.5 lakh sedan upgrade) will make you richer by 22.5 lakh rupees over the next 5 years! That’s an earning of Rs. 4,50,000 per year. OR Rs. 37,500 a month. |
Was going through this thread for quite sometime [going through pages] and I am now trying to make up my mind to either "go" or not to go for Vento. Not that I dont like Vento, but just that I happen to read this thread about not selling any car less than 5 years.
In fact, I wanted to go for XUV and I had been following the XUV thread for over 9 months, decided to go for that 10 days ago, made the booking, but cancelled it due to sudden financial requirement at home.
Anyway, back to the point, I have 4 years old Verna, reading exact 82k on the ODO. The problem is, I find the clutch too hard and the steering lacking the smoothness. My dad bought a i20 2 months ago and I have carjacked it from him from Bangalore. The clutch and steering in i20 is butter smooth when I compare it with my dear verna. I checked with Hyundai folks and they say since the car has done 82k in about 4 years, even if I change the clutch (costing Rs.30k), in a year or year-and-half it will go back to what it is now. Though financially for 30k for a year is not matter, what is making me think of moving to another car is the resale cost I would get for my dear Verna now vs one year down the line. Also, if financially I would take Rs.x as loan, I would have to go for Rs.x+y next year due to a) resale value of my car going down and b) cost of the new car higher than this year - typical case is XUV, increase several lakhs in 1.5 years of launch (I quote this as I am following this since launch)
I TDed the Vento recently and found the clutch and steering to be less butter than i20, but much better than my Verna.
My question is, whether I should go for new car at all or not and if I should go, is Vento better choice than others (Sunny, Rapid)?
Few things I had in mind for going in for new car:
a. My dear Verna does not have Airbags (I have CRDi SX ABS model)
b. Clutch is very hard. Finding it difficult in b-2-b city traffic, my left foot is aching
c. Steering is hard - turns are not smooth
d. Audio controls are not there in steering (I am spoilt by my carjacked i20)
e. No Auto lock, which the i20 has - at 20+kms
f. Resale cost this year vs next year and my loan value this year vs next year going to be higher
g. I have to give the i20 back to father, not just because he wanted, but since I live in Chennai, he lives in Bangalore and the i20 is Karnataka registered one. Cannot live with it in Chennai for a long time
h. Had to replace the rack/pinion set
i. Had to replace the windshield as it was throwing oncoming light in all direction inside the cabin
j. Good amount of scratches all around the car. Cant service it, just because of the fear of loosing resale value as the paint and etc. will not be original, the guy buying will not know if the dent was too bad that I put on this or mild ones
Not going for new car, retain the dear Verna:
a. Has given my family great owning experience
b. Mileage is 12 in city and 16 in highway - guess it is not bad, or should I say it is good for a 82k kms vehicle?
c. Going into further debt, new loan, pay money to the bank for lending me - in short, cost of ownership
d. I will save on this money that I am giving to the bank - in short, opportunity cost as you have said
For me now it is the question of asking my left foot vs listening to the mind. I need help in decide this, especially because I have gone through this thread. Otherwise, I had already listened to my left foot...