[shankaranand]

Originally Posted by pkk077

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.

Are you telling it from an affordability perspective or reliability perspective?

I dont think we should pay 70% for a 5 year old car just because it is affordable to you. You will probably be better off buying even a more expensive car that is available at a higher depreciation.

The Honda/Toyota reliability edge over german/european cars have relatively worn off. In legacy terms, that is how Honda/ Toyota built their reputation but is no longer the case.

I had an 8 year old skoda superb which ran absolutely fine without a single issue other than regular service (I had it for nearly 5 years). VW/Skoda/Audi/Mercs are all quite reliable. So I would not pay any premium to Honda/Toyota purely on perceived reliability.

[nikhil_pon]

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...

Thank you very much for highlighting these examples. Just gave me reassurance not to check for used cars via dealers in Bangalore. Better to try for direct owner even though it may take more time in searching the right vehicle.

Atleast if bought via any BMW/ Merc / company owned preowned route then there is likelihood they would have completed the basis services and also not sell a lemon. Plus the added advantage of option for extended warranty.

But i do not see any benefit of buying from the used car dealer / resellers who just shine up the car and keep in their premises until they find gullible buyer. Its observed to be true atleast in Bangalore.

[pkk077]

Originally Posted by shankaranand

Are you telling it from an affordability perspective or reliability perspective?

First of all sorry that I misread your post. I agree with your original post that a 5 year old car should not get one more than 40% probably. What I wanted to add was that if the car has a risk of high cost repair - like a DSG failure for example, that risk should also be priced in versus the absence of such a risk in say more reliable Japanese cars.

The ballpark suggested in another post in this thread makes sense that way - 30% reduction for first year and then 5% for every subsequent year. Then apply the (perceived) reliability factor to do another +/- 5-10%.

[mh09ad5578]

Originally Posted by shankaranand

I had an 8 year old skoda superb which ran absolutely fine without a single issue other than regular service (I had it for nearly 5 years). VW/Skoda/Audi/Mercs are all quite reliable. So I would not pay any premium to Honda/Toyota purely on perceived reliability.

Could you please tell me the running per year and the kms at which you got it and sold? Just curious as a run of 10k kms per annually I say most cars would work just fine. But if you are doing serious kms then Germans might be a liability. Would love to be proved wrong though

[jaganm]

I am currently in the process of sellling my Ecosport and buying a XL6. It is a petrol automatic, which has low mileage (30K), always been serviced with proper records and drives great with a few dents and scratches that are part of urban car life. Given it is 6 years old, I expected around 50% of the car value when purchased and to my surprise, I got quotations almost within that range from both cars24 and True Value. However, to my frustration, I haven’t been able to get a private buyer to match that. They see it they love the car but quote absurd sums which are almost 50K less than what true value quotes.

The key reason I think is the low trust levels in our society. We just don’t have the confidence that another person is honest. But we would rather pay an extra lakh buying from a dealer because you can go back to them if there is any issue.

Ultimately, I think I’m going to end up giving it to Maruti themselves. And likely, the guy who buys it will pay at least 50000-100000 more than if they had dealt directly with me. But such is life...

[JithinR]

Originally Posted by jaganm

However, to my frustration, I haven’t been able to get a private buyer to match that. They see it they love the car but quote absurd sums which are almost 50K less than what true value quotes.

The key reason I think is the low trust levels in our society. We just don’t have the confidence that another person is honest. But we would rather pay an extra lakh buying from a dealer because you can go back to them if there is any issue.

Is it possible to provide the cars24/true value evaluation report to the individual buyer. That might increase his trust on the car.

I even saw a few examples of people who had listed their cars on cars24 and then on our classifieds. This allowed prospective customers to check the cars detailed inspection report.

For an safe automatic in Bengaluru the dealer is easily going to ask more than 1.5L over the purchase price.

[shankaranand]

Originally Posted by mh09ad5578

Could you please tell me the running per year and the kms at which you got it and sold? Just curious as a run of 10k kms per annually I say most cars would work just fine. But if you are doing serious kms then Germans might be a liability. Would love to be proved wrong though

,
My mileage was around 15,000 kms every year. Got it at 45,000 kms and sold it at 115,000 kms.

[JithinR]

In a sign of how absurd the prices for used automatic hatchbacks has become in cities like Bengaluru check this one out:

In 2018 or 2019, I remember going to Spinny outlet to check out a Black 2014 Honda Brio VX (AT) run about 40+k listed for about 4.4L. I think it eventually sold for 4L. I considered it overpriced then.

Now there is a Blue 2012 Honda Brio S(O)(AT) run about 96k+ listed for 3.78L on Spinny. I am sure it will be sold by this weekend.

[76BulletNavin]

What I think are 2 reasons -
- owners here don't use their car like in US often & hence very less milage even for 10 years car. That gives an impression that car in India last longer and even a decade old car is usable & retains value
- used car dealers jack up the prices X2.

[RM Motorsports]

48% tax on buying a car, and that’s after already paying 30% income tax.

[saket77]

Originally Posted by RM Motorsports

48% tax on buying a car, and that’s after already paying 30% income tax.

I avoid looking at this invoice for my car.

PS: And this is without road tax and GST on insurance.