An affordable four wheel dream

Want to fulfil your dream of sitting behind a steering wheel but lack moolah? A new car is certainly more exciting to drive but with the rap...

Want to fulfil your dream of sitting behind a steering wheel but lack moolah? A new car is certainly more exciting to drive but with the rapidly growing second-hand car market and entry of organised players, buying a second-hand car can be a good deal offering you a wide choice.

So far, second-hand car market in India has been highly fragmented and unreliable as unorganised players dominated the market. Even a very good looking car could be sold to you with a replaced engine, which could be a stolen one or involved in an accident. Not only the buyers even those who want to sell their cars also face lot of problems in getting the right price and on time.

But with the entry of organised players like Maruti, Hyundai, Ford and Mahindra group’s Automart India in this business, getting a good deal has become much easier and that too with the backing of financing, insurance, warranty and free service options.

In India, the ratio between the new and used car is almost 1:1 and sale of used car is directly proportional to the pattern of new car sales. Maruti 800, Zen, Esteem and Hyundai Santro constitute nearly 75 per cent of the used car market.

India’s largest car maker, Maruti Udyog Ltd launched Maruti True Value in August 2001 and has already opened 87 outlets in 66 cities across the country and plans to extend this to all its dealers present in 166 cities. Starting from 25-26 cars per month, Maruti True Value is now selling nearly a 1,000 cars every month and more than 50 per cent of this demand is for M800 followed by Zen and Esteem. One can find a good Esteem VXi, 2000 model with power steering and power windows for Rs 3.20 lakh which is almost Rs 20,000 less than a new Zen base model. The base model of Esteem of 1997 is available between Rs 2 to 2.16 lakh, depending on the mileage, that is almost at the price of new standard Maruti 800. For 2001 model of same car, one has to pay Rs 3.25-3.4 lakh which is almost Rs 5,000 lesser than the base model of WagonR LX.

One can get a 1998 Zen LX (base model) for Rs 1.9-2 lakh which is even less than new Maruti 800 and just by paying Rs 20-30,000 extra, one can go for 2000 model used Zen. For a brand new Zen VXi (the fully loaded version) one has to pay Rs 4.08 lakh while by paying the same amount, one can pick up a 2002 model of Esteem VXi, equipped with power windows and power steering.

At Maruti True Value, sellers are benefited from the best price while selling or exchanging their old car. For buyers, Maruti offers loyalty scheme with bonus for exchange so that most sellers go for upgradation within Maruti family itself. At a mere 10 per cent premium, the buyers of used cars are assured of proper documentation, product quality, genuineness of vehicle’s previous ownership and get financing options. They are also given one year warranty and three free services. Maruti True Value though buys only Maruti cars, depending on the dealers, you can also sell any other make but only when you buy a new Maruti car.

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If you want to dispose off any other make, you can zip through Hyundai Great Exchange offer. Launched in April 2001, Hyundai’s programme gives customers the assurance of right evaluation and a fair price for their old car when they buy any Hyundai model. Since Hyundai has only 4.5 lakh vehicles on road and less than 50 per cent are more than three years old, the number of Hyundai cars entering the used market is limited. Launched in 1999, Hyundai’s compact car Santro is gradually capturing the used car market at a high resale value due to their operational efficiency. Here, by paying Rs 1.55 lakh, one can get the base model of Santro of 1999 and while 2000 model of Santro LE (with AC) is available for Rs 1.75 lakh. The Santro LS with power steering and windows of 2001 is available for Rs 2.1-2.15 lakh which is almost equal to the price of Maruti 800 standard.

At Automart India, one can pick up any car from any segment with a focus on C and D segment. Here, a 1999 model Ford Ikon 1.3 EXi with power steering and power windows is available for Rs 2.7 lakh and just by paying Rs 25,000 extra, one can go for more powerful Ikon 1.6 ZXi of 1999. For Rs 3.75 lakh, a 1999 Hyundai Accent can be bought while a 2000 model Accent with power steering is available for Rs 4 lakh, very close to the price of fully loaded new Zen VXi.

And, if you want to go for a bigger car, one can get a fantastic deal on Honda City, Mitsubishi Lancer or Opel Astra. A 1.3 Exi Honda City of 2000-01 is available for Rs 5 lakh while 1.5 EXi costs Rs 5.25 lakh, almost at the price of a new Opel Corsa, Hyundai Accent or Ford Ikon. That too, when Honda City commands maximum demand in this segment in the used car market.

The selling price for Mitsubishi Lancer here is Rs 3.5 lakh for 1998-99 model and Rs 4.75 lakh for 2001 model.

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Opel Astra which has lost demand in the new car market sells cheapest in the used car market too. A 2001 model is available for Rs 4 lakh and if you can compromise on mileage a bit, you can own an Astra of 1998-99 just by paying Rs 2.7-2.75 lakh.

One can also get good deals for D segment luxury cars. Just by paying Rs 10.5-11 lakh, a fully loaded 2000 CC Sonata or even E 220 Mercedes of 1997 can be bought.

At Automart India too, which is used by many manufacturers to trade in used cars, the customer gets all the documents in place, service record of the vehicle, correct mileage and one year warranty with three free services.

So, for the customers it’s advised that while buying a used car, going to a trusted organised seller is the best. So that, one doesn’t have to lose sleep over documentation, the condition of the car or the original seller. And, you can assure a smile on your face while steering

in a car.