A strange proposal

Got an interesting requirement in the mail:

Buying a car for our family

Author: Swarna
Date: 6th Feb 2008

Background:

We have moved to Manipal where we might stay for a few years at least. As it rains continuously in Manipal from the month of June to October, commuting becomes difficult on a two-wheeler in those months. So, hereby I put forward the proposal of buying a car for our family.

Review of literature:
From their time of invention, cars have been a comfortable means of transport compared to two wheelers. Though it is also considered to be a symbol of status and luxury, it is very advantageous to own a car for the following reasons.

1. We can get protection from the fury of the weather, be it the smoldering sun, the chilling winter or a torrential rain. Weather will not be a limiting factor in our moving from place to place. This becomes important in places where the weather conditions are extreme.
2. We can escape the air-pollution in an AC car. It is important from the health point of view, since air-pollution is seemingly becoming one of the important causes for the onset and aggravation of respiratory diseases.(for Bala)
3. The better shock-absorbers in a car are less troublesome for people with spinal problems. Two-wheelers aggravate those problems esp. on bumpy roads (for Swarna)

Choosing the car:
The car we want to buy depends on why we want to buy it. Looking at our current need, i.e, we need a car to get transported during the rains, a basic model would suffice which would have an AC and a power steering.

AC is required because, when it rains, the windows have to be closed and it can get very stuffy without AC. (This comes with an addition of around 30-35000Rs upon the non-AC version)

Power- steering is required for us because it takes lot of effort to steer the car otherwise, and it can be a very tiring experience to drive without that. (This comes with an addition of around 20000Rs)

Now, the next question is, choosing the brand.

Maruti and Hyundai seem to be good in servicing and have a better re-sale value compared to the other brands. Compared to Hyundai, Maruti’s service is better, spares are easily available and cheaper. And also Maruti has some very good , pocket- friendly basic models compared to Hyundai. So, going for Maruti cars is a good choice.

The basic models available in Maruti are

1. Maruti 800
2. Maruti alto

Alto is better than M800 because

• M800 models do not have power steering
• Alto’s body is better built and offers more safety during collisions compared to M800
• Alto’s engine is better and it has 5 gears

All the above advantages and some more features come for a price difference of around 50000. So, weighing the benefits against odds, buying an Alto seems to be more sensible. (power-steering itself would cost around 20000Rs. So the better built and better engine comes for just 30000 Rs extra)

So, now going for a Maruti- Alto with AC and power steering (model LXi) seems to be the best choice.

Used or new?
The next question to be addressed is to buy a new one or used one?
Disadvantages of a new car:

• The moment a new car is driven out of the show room, its value depreciates by 20% and after that whether it is used or not, its value depreciates by 10% every year

Disadvantages of a used car:

• its very difficult to assess the condition of the car properly and correctly value the car
• it is sometimes difficult to get the car of your choice as a second hand in good condition

If there are budget constraints, and the car would be used only sparingly, it is wise to go for a used car with the help of a good mechanic.

If you happen to come across the car of your choice in a good bargain, it is a really good deal (as happens to be case now with us)

So, going for an alto in good condition as second hand is indisputably the best option !

Budget:

Coming to the formidable question of budgeting the project…

A research on buying used cars says that, the car of our choice (alto LXi) in good condition, as a second hand can be bought from 1.7 lakhs to over 2 lakhs depending upon the age of the car.

So, the minimum budget requirement is 1.7 Lakhs. Considering our financial situation, we can keep the maximum to be around 2 Lakhs

Conclusion:

So, I hereby conclude by proposing that we buy a Maruti-alto LXi, preferably a second-hand in good condition, which might require a budget of between 1.7 to 2 Lakhs.

References:

http://www.carwale.com/
http://www.mouthshut.com/
http://www.autocarindia.com/