[TusharK]

Mahindra First Choice Wheels has launched a new multi-brand premium used car brand called 'Edition'.



The first 'Edition' store has opened in Juhu, Mumbai, which currently has used cars from brands like Mercedes-Benz, Audi, BMW and Jaguar for sale. Edition also offers comprehensive warranty coverage on its vehicles.



According to the company, with rising disposable incomes, more buyers are looking to upgrade to premium brands. While purchasing a brand new premium car may not be feasible for most, Edition would enable buyers to own these cars at a more affordable price.

Mahindra First Choice Wheels has a multi-brand used car sales network comprising of over 1,200 outlets spread across more than 500 cities in India. Cars are refurbished and undergo an 118-point quality inspection before being put up for sale.

Link to Team-BHP News

[GTO]

Nice, because Mahindra First Choice is hardly the 'first' name that comes to mind when shopping for a pre-worshipped Audi / BMW / Mercedes / other.

They'll need a very wide inventory to attract customers & make a name for themselves. This won't be easy as the high-end used car market is different. Authorised dealers control a big chunk of it, and in the unorganised sector, there are already many luxury car 'specialists'.

If done right, the store will rake in the moolah. I've seen a dealer buy an E-Class for 35 lakhs and flip it for 43 lakhs in 3 weeks. The margins in used luxury cars for dealers are INSANE! You would have to sell 15 - 20 hatchbacks to make the kind of money you do on a single luxury car.

Wish they'd made the showroom a bit more premium looking. At first glance, it looks like any other First Choice outlet.

[SmartCat]

Well, ordinary First Choice outlets do not have those yellow and white balloons!

Some data on Mahindra First Choice (as a business):

Revenues: Rs. 140 crores (up 55%)
Profits: minus Rs. 32 crores (losses have doubled compared to FY17)
Networth: Rs. 120 crores

Breakup of major expenses:

Advertising expenses: Rs. 16 cr
Rentals for warehouse/yard: Rs. 22 cr
Vehicle pre-inspection and valuation expenses: Rs. 20 cr

The FY18 annual report says Mahindra First Choice owns IndianBlueBook.com. Is this well known?

[extreme_torque]

Originally Posted by GTO

Nice, because Mahindra First Choice is hardly the 'first' name that comes to mind when shopping for a pre-worshipped Audi / BMW / Mercedes / other.

They'll need a very wide inventory to attract customers & make a name for themselves. This won't be easy as the high-end used car market is different. Authorised dealers control a big chunk of it, and in the unorganised sector, there are already many luxury car 'specialists'.

If done right, the store will rake in the moolah. I've seen a dealer buy an E-Class for 35 lakhs and flip it for 43 lakhs in 3 weeks. The margins in used luxury cars for dealers are INSANE! You would have to sell 15 - 20 hatchbacks to make the kind of money you do on a single luxury car.

Wish they'd made the showroom a bit more premium looking. At first glance, it looks like any other First Choice outlet.

For a maker who wants to go upmarket, the idea that the brand is selling used car for other luxury brands doesnt appeal to me. Its not that this one is a cash cow for Mahindra either. If I was the CEO i will wind the business down and cut my losses and my brand.

[SmartCat]

Originally Posted by extreme_torque

For a maker who wants to go upmarket, the idea that the brand is selling used car for other luxury brands doesnt appeal to me. Its not that this one is a cash cow for Mahindra either. If I was the CEO i will wind the business down and cut my losses and my brand.

You have to remember that M&M is a conglomerate, and not just an automotive company. Some 40% of the conglomerate's revenues and profits come from their other businesses that include -

- IT division
- Components division
- Finance division
- Logistics business
- Used car business
- Car servicing business

In each of the above businesses, M&M's traditional rivals or brands are also their clients.

[ACM]

SC

1) Out of a turnover of 140 Crs how can vehicle Pre Inspection and valuation cost 20 Crs.

2) Do they consider the entire value of cars sold as turnover?

3) They should be paying a GST of 12% or 18% don't remember. Is this on the sale value or on the difference in purchase and sale value?

[SmartCat]

Originally Posted by ACM

SC
1) Out of a turnover of 140 Crs how can vehicle Pre Inspection and valuation cost 20 Crs.
2) Do they consider the entire value of cars sold as turnover?
3) They should be paying a GST of 12% or 18% don't remember. Is this on the sale value or on the difference in purchase and sale value?

Mahindra First Choice works on franchisee model - so most of the revenues would be from fees, rather than car sales.



Also -

- They sell warranty products on used cars
- They have a Cars24.com type wholesale business too
- They own http://www.autoinspekt.com. This division probably cost them Rs. 20 cr in expenses.

[Adi_k]

Originally Posted by GTO

Nice, because Mahindra First Choice is hardly the 'first' name that comes to mind when shopping for a pre-worshipped Audi / BMW / Mercedes / other.
.

Who are the top dealers when it comes to pre-owned Luxury cars?