Economic Suicide: Poor Resale Tales
Always remember this. Never miss to take note of resale
value while doing homework for buying a new car. Otherwise, it may turn out to
be an economic suicide some years down the line. Some may rebut me that why should
we think about selling the car (sometimes latter) at the time of buying? “You
buy, you drive, and you sell.. It’s as simple as that!”, “You take pleasure in
and you pay for it”. It is valid that you cannot foresee the resale trend years
after. Nor it is hard to compromise your dream car for some unclear market
trends. But, you can prevent some apparent risks and liabilities by buying
right cars or to be exact, by avoiding some cars. Hey come on, it’s your hard earned penny
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Some may reject the idea of money loss, since they feel that
it is logical to shell out for satisfaction. But money too matter, otherwise
you could have gone for the next segment or a costly car. Let us consider one of
the worst cases for study. A customer buys a brand new Mitsubishi Montero MT for
an approximate on-road price of Rs. 55 lakhs in November 2010. After two years
and four months, now he wants to sell it. The car has clocked around 60,000kms
with no body damages other than few paint scratches. How much is the market
ready to pay for the car?
My recent encounter with a deal to buy a used SUV took me to
some appalling facts about the Montero in the used car market in Tamil Nadu.
Montero sales was very marginal and thus very few are available for sales. Yet,
their asking prices are ridiculously low. A 2010 MT model with an odo-reading
of 70,000 to 1,00,000kms, first or second owner status with good maintenance
records are bargained for around Rs. 9 lakhs. Owners find it difficult to sell
their Monteros and wait for a longer time to get them sold. A used car market analyst
warns that customers should not pay more than 8-9 lakhs for such a car since
more maintenance nightmares are awaiting them.
Montero, WagenClub contacted the Mitsubishi dealer in Chennai. We were told
that the usual overall service for every 10,000kms averages around Rs. 15,000.
A clutch-plate overhaul would easily cost you around Rs. 1.2 lakhs! A
turbo-charger replacement would rob you more than Rs. 2 lakhs. You cannot swap the
driveline timing belt for nothing less than Rs. 50,000. Headlamps, windshield,
side mirrors, bumpers and other susceptible items are exorbitantly priced too. Pricing
is not the sole horror. Your Montero would be waiting at the service center for
repairs from a minimum of two days to two months! Every spares are to be
ordered and takes ample shipping time. Montero is a CBU, remember that!
Now rack your brains about, the loss to the first owner is colossal.
The initial buying cost of the car, periodic service costs, and insurance costs are
high. Frugality is just decent, which bring a reasonable fuel cost for the
drives. At the end of the day when he wants to sell the car in two years, he is
sanctioned a very meagre resale price. He could have done a better homework
while buying the car, he may have diminished his liabilities. He could have
opted a Freelander 2 or a BMW X3, they could have offered him a better brand
image and more satisfaction. A 2.4l auto C-RV can take pride for a stronger
resale value. And Montero is not a car of those segment standards either; it is
basically the next-generation Pajero with few luxury bits.
Montero. So, I wish you would do a better holistic homework before buying a
car, will you??