Information Madness

Tata Nano has been creating stir in the automobile industry for quite sometime now. Ever since Ratan Tata announced the launch of its Rs. 1 Lakh car, everyone was eager to know what that car would look like. After its demo in the Delhi Auto show, Tata Nano is the talk of the nation and worldwide.

There was a Tata Nano - Funny Cartoons that is predicting the future of India after the Tata Nano launch. After the launch of Tata Nano which can be bought for Rs. 1.3 lakh (Brand New), what would happen to the used car market? Just the launch news of Tata Nano caused the used car market to crash by 30%. 

Here is an interesting story at Business Standard. "The price of a second-hand Maruti 800 has dropped over 30 per cent since the Nano was unveiled. To give an indication, the price of a 2002 model has dropped from Rs 1.1 lakh in December to Rs 75,000 today" said Arif Fazulbhoy, director, Fazulbhoy Motors, one of Mumbai’s largest car dealers.

So now you can by 2003 Santro for Rs 1.65 lakh which used to be about 2 lakh. Palio 1.9 2003 can be bought for Rs. 2.5 lakh which used to be at 2.95 lakh. Thats a hugh crash for used car market in India. 

So may be this is the right time to buy a used car rather than waiting for Nano launch. You have better negotiation power right now. If you look at the features of Tata Nano and cars like Alto, Santro etc, you have more features and now you can get 3-4 years old car with all the features for almost the same price as Tata Nano.

Here is a Car Depreciation schedule and you can see that if you buy a used car right now, you get the best value for your money.