[RaghavEvoX]

I always look at the IDV value in the insurance to come at an approximate figure for the used car.

Based on the condition of the car and the negotiation skills of the buyer/seller, the selling price can be +/- 10% of the IDV of the car.

[Voodooblaster]

Originally Posted by slamnos

Those whose nature of business is dealing through cash transactions (black money) prefer to buy sparingly used cars (as they cannot buy new cars with cash only), hence few popular models especially SUVs seem to have higher resale (apart from obvious popularity / reliable reasons)

This is the most valid reasons for sky high resale value.

Simply put, wherever there is an abundance of black money, resale values hit the roof. Trade of used cars is also used to launder ill gotten gains.

Many people of Tamil Nadu are buying used cars from Kerala to escape the illogical valuation.

[skyocean]

Originally Posted by shankaranand

I see asking prices upto 75% and above for 5 year old cars.. Really!..

In UK/US, typical depreciation is 50% in 3-4 years for exceptionally maintained cars.

why are these so expensive in India??

Setting aside safety, drivability etc Resale value is perhaps that only important factor people consider while buying brand new cars. This resale value is hypothetical and is driven by the herd culture prevalent in Indian society. This infact boosts the sales of an average car which would have been overpriced in the first place due to this faux demand cycle. The cycle repeats year on year and hence the resale hypothesis argument holds good making people shed more and more money to own an old overpriced vehicle.

Till there is sheep and the shepherd is blind there will be wolves who would continue to have a feast. This is the sad state of Indian car market.

[manishk123]

I still remember I got the first Maruti 800 via original allotment No.211 for Rs.50,000 odd. I used her for 6 - 7 really enjoyable years and then sold for Rs.65,000. The only modern car I bought that actually appreciated in value!!

Its all about demand and supply in India and also government policies - new taxes keep making the prices of new cars going higher and higher, hence 2nd hand market also adjusts accordingly.

[AirWind]

The used car prices in Bangalore of all places is higher because the upfront costs is higher too... but the main reason being the used car mafia lapping up any car that is sold and list it at astronomical prices, here are some examples based on my personal experience chasing pre-owned route recently,

1. This Tiguan was listed on Cars24 for ~22L and listed on our very own team-bhp classifieds for 26.5 - https://classifieds.team-bhp.com/buy...n/Tiguan.html/ and same car listed in olx https://www.olx.in/item/volkswagen-t...iid-1625032281

2. This (another) Tiguan was also listed on Cars24 for ~22L and listed on olx for 27.75 - https://www.olx.in/item/volkswagen-t...iid-1623895849

3. An Innova Crysta Touring Sport 19K done 2017 model was listed on cars24 for 21L purchased by a dealer and listed for 23L

I also believe the cars24 ppl are closely involved because they never returned my call to see this car...

4. 3GT listed on carwale from a direct owner for 32L is now listed by a dealer for 39.5L - https://www.olx.in/item/bmw-3-series...iid-1612444359

5. Passat - was listed by an individual owner for Rs. 27L picked up by a dealer and now listed for Rs. 28L - https://www.carwale.com/used/cars-in...rk=1&isP=false

6. Have seen an Octavia vRS 230 listed by owner on carwale for 27L, picked up by a dealer and listed for Rs. 29L

7. Kodiaq - listed for 29L on carwale, re-listed by a dealier for Rs. 34L now revised down to 32.5L https://www.carwale.com/used/cars-in...rk=1&isP=false

Can give plenty more examples...

[Raghu M]

Originally Posted by mvadg

Isn't this the case with all goods in India? Only thing you can get cheap are software engineers

to that! Frankly, good engineers don't come cheap. Experienced engineers have great asking price in the market, have more than one firm that can hire them and always can bargain between two firms easily and get the best deal. And above all, have a great appreciation value!!

[BNG-motorhead]

This is my exact dilemma. Why would I spend on a exorbitant pre-worshipped when I can stretch 30% and get a new one in maybe a segment lower or lower config.

eg. was getting a 2015 Honda Jazz for 7.75 in bangalore. I'd rather spend this on a new Amaze and do minimal upgrades that I need.

[heysac]

Originally Posted by GTO

The "asking price" is of zero relevance here. What matters is the "transaction price", that is the actual selling price.

The last 3 cars I bought:

- One was 40% off for a 1 year 4 month old example with 19000 km

- Another was almost 50% off for a 3 year old with 7400 km on the clock

- The 1st-gen Vtec was 25% off; 1 year old run <4000 km.

Just have to know which model to pick and where to look . Although I will say that increased demand & reduced supply of used cars has led to a 5% increase in prices post-pandemic. VC-funded new startups lapping up used cars hasn't helped either.

Hi GTO, why don't you share some tips on where to find a good used car (low odo as well as less age)? My dad is looking for a small car (narrow as well) in Delhi since the road has been encroached upon. He has driven Zen earlier but can't drive Swift very well. I have been thinking that maybe Grand i10 (not much narrow now) or Celerio might fit him. Most of the driving will be within Delhi, occasionally to Gurgaon/Noida, rarely on GT Road.

[condor]

And of all the brands - Maruti !

We were checking out a 2011 Dzire Diesel, which was a single owner, low run piece (service records checked out). Dealer/consultant asking 4.05L :O ..
The car had a check engine alert, with water-pump and and oil leakage and a couple of other smaller issues. He refused to budge even though we gave him the list. Pretty much dropped it.

GTO said we need to know where and what to look. But in this case, the buyer was specifically looking for the old DZire.

[pkk077]

Originally Posted by shankaranand

I see asking prices upto 75% and above for 5 year old cars.. Really!..

Agree. A popular vehicle like Innova, with 5 years and 100K Kms done is being listed at 2/3rd the price of the same brand new model of today (not the 5 yr old price of same model). This is really astonishing. If I lose only 1/3rd of car value in 5 years then in theory I can buy a new car every 5 years and pretty much end up spending the same as I would if I had kept the original car for 15 years. This market dynamic is hard to understand or explain.

[BNG-motorhead]

Originally Posted by AirWind

The used car prices in Bangalore of all places is higher because the upfront costs is higher too... but the main reason being the used car mafia lapping up any car that is sold and list it at astronomical prices, here are some examples based on my personal experience chasing pre-owned route recently,

1. This Tiguan was listed on Cars24 for ~22L and listed on our very own team-bhp classifieds for 26.5 - https://classifieds.team-bhp.com/buy...n/Tiguan.html/ and same car listed in olx https://www.olx.in/item/volkswagen-t...iid-1625032281

2. This (another) Tiguan was also listed on Cars24 for ~22L and listed on olx for 27.75 - https://www.olx.in/item/volkswagen-t...iid-1623895849

3. An Innova Crysta Touring Sport 19K done 2017 model was listed on cars24 for 21L purchased by a dealer and listed for 23L

I also believe the cars24 ppl are closely involved because they never returned my call to see this car...

4. 3GT listed on carwale from a direct owner for 32L is now listed by a dealer for 39.5L - https://www.olx.in/item/bmw-3-series...iid-1612444359

5. Passat - was listed by an individual owner for Rs. 27L picked up by a dealer and now listed for Rs. 28L - https://www.carwale.com/used/cars-in...rk=1&isP=false

6. Have seen an Octavia vRS 230 listed by owner on carwale for 27L, picked up by a dealer and listed for Rs. 29L

7. Kodiaq - listed for 29L on carwale, re-listed by a dealier for Rs. 34L now revised down to 32.5L https://www.carwale.com/used/cars-in...rk=1&isP=false

Can give plenty more examples...

This is sounding like the property dealer nexus. Buy, hold, team-up, define new prices.

Any person with white hard earned money would think thrice before buying at these prices. Is this really targeted towards people with unaccounted for cash? I know for a fact that many folks with unaccounted cash prefer secondhand cars to avoid the paperwork

[sgm]

I was trying to sell my 2.5year old well maintained Corolla Altis top-end model with just 22K km and I got a quote of just 13L from Toyota U-trust (new car was costing 25L on-road in Bangalore) and I realized that is too low for a well maintained car, so dropped the idea and kept it. Due to lack of time, I neither tried to find an individual buyer or explore other options. When you try to sell, you get pathetic quote but when you want to buy, the used car dealers quote high

[shankaranand]

Originally Posted by BNG-motorhead

This is sounding like the property dealer nexus. Buy, hold, team-up, define new prices.

Any person with white hard earned money would think thrice before buying at these prices. Is this really targeted towards people with unaccounted for cash? I know for a fact that many folks with unaccounted cash prefer secondhand cars to avoid the paperwork

Here is my problem. Instead of buying a 5 year old car with suspect quality (mileage, issues..) at 75-80% of its original value and then paying further for tyres, battery, clutch etc.., I would rather spend a bit further and go for the new one.

For a 5 year old car to make sense, it has to be less than 40% of its original value.

Originally Posted by sgm

I was trying to sell my 2.5year old well maintained Corolla Altis top-end model with just 22K km and I got a quote of just 13L from Toyota U-trust (new car was costing 25L on-road in Bangalore) and I realized that is too low for a well maintained car, so dropped the idea and kept it. Due to lack of time, I neither tried to find an individual buyer or explore other options. When you try to sell, you get pathetic quote but when you want to buy, the used car dealers quote high

The key is for sellers to keep a realistic estimate. On private sell, you should get more than 60% of its value for a ~3 year old car. If you quote ~16L and make the deal at 15L, people will lap it up. If you quote 20 lakhs for a 25 lakhs vehicle, I will not even bother to call you. Because, If I propose 15Lakhs, you/seller will call me a low baller and cut the call.

Originally Posted by GTO

The "asking price" is of zero relevance here. What matters is the "transaction price", that is the actual selling price.

The last 3 cars I bought:

- One was 40% off for a 1 year 4 month old example with 19000 km

- Another was almost 50% off for a 3 year old with 7400 km on the clock

- The 1st-gen Vtec was 25% off; 1 year old run <4000 km.

Just have to know which model to pick and where to look . Although I will say that increased demand & reduced supply of used cars has led to a 5% increase in prices post-pandemic. VC-funded new startups lapping up used cars hasn't helped either.

GTO, I would love to have your negotiating prowess!.

[pkk077]

Originally Posted by shankaranand

For a 5 year old car to make sense, it has to be less than 40% of its original value.

Depends on the car really. I would say 50-60% for a 5 year old Honda/Toyota may be OK but for expensive Germans or even a Jeep/Skoda/VW, even 50% of original price is too high.

[dhruvlath]

While current car prices do make a difference to the price of a pre owned car, ultimately it is demand and reliability that get you a good price. Maruti, Toyota, Honda are the best examples of this in our market.