Five things to know while buying a used car

Auto manufacturers and dealers are promising fabulous discounts and freebies for those planning to make a purchase of new or used cars in India. Go through the following pointers before you avail of them.

1. New year, old model

Car companies usually offer big discounts in December to clear their inventories before they hike prices and launch new models in January. If you buy now, your vehicle will bear the registration date of December 2013, and in a few days, it will be last year's model.

This should not matter if you are planning to use the car for at least 7-8 years. However, if you plan to change the car in 3-4 years, the registration date will matter. A 2013 model will fetch a lower resale price four years down the line.

Hence, it will be prudent to wait till January to buy it. Remember that a new car should be used for at least 8 years to get a full return on investment. Sell it earlier and you could lose out on its value.

2. Buy within your means
The bigger the car, the fatter the discounts being offered. However, don't let the freebies entice you into making a purchase you can't afford. The golden rule is that the price of a car should not be more than 60% of your annual takehome income.

3. Consider the offers closely

While you should not look a gift horse in the mouth, when it comes to freebies from car dealers, a closer look is necessary.

4. Transfer the no-claim bonus

All car owners know that if you don't make a claim in a year, the next year's premium fetches a discount. However, few know that a noclaim bonus can be transferred to another vehicle, bringing down the insurance cost of a new car.

5. Petrol, diesel or CNG?

Petrol is the costliest car fuel, but petrol cars are the cheapest. Diesel is inexpensive, but the diesel variants of cars are costlier by Rs 75,000-1 lakh. They also require higher maintenance.

Read more at:
http://economictimes.indiatimes.com/articleshow/27725870.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

News: Fresh models required by new banks to flourish

As per the market sources, new banks will have to develop a fresh business model to succeed, including making profits in rural areas and tackling risks associated with technology and cash management.

RBI is currently in the process of shortlisting applicants for new banking licenses. However, licences are being issued after a gap of about a decade and those to have applied in the current round also include Shriram group, India Post, LIC Housing, IDFC, Indiabulls, JM Financial, India Infoline and Edelw.

For more news keep visiting to SAMIL blog

NEED OF PRE-OWNED CARS

Cars, now, in any country are indispensable. Work has enlarged and so is the root for movement from one place to another. Now, more and more people are getting financially independent escalating the demand. Women too are learning to drive and gaining financial independence to do their own everyday jobs. This again is swelling the demand for pre-owned cars.

When a buyer can get a car in good condition for a price one –third less as compared with a new one, there is something to be said for buying a pre-owned car. The availability of many good internationally acclaimed cars on the Indian roads has added to the charisma of owning a car, be it even a pre-owned car.

The rapid growth of the organized pre-owned car dealers, the market for old vehicles continues to be dominated by individuals trying to sell and buy cars. In the testimony to the growing market of pre owned cars, its authenticity should be carefully checked. Wider selection and ready availability of car loans is driving the Indian pre-owned car market.

The process of buying a pre-owned car can be fruitful and risk free, if you take the necessary precautions and opt for buying certified pre-owned car.

Shriram Automall is yet another pioneering initiative engaged in facilitation services for disposal of pre-owned and repossessed/refurbished commercial vehicles, farm/agriculture equipment, construction/industrial equipment /machinery of all types and categories, passenger vehicles, three wheeler's and two wheeler's. Mr. Sameer Malhotra, CEO takes pride in setting up one of the most innovative concepts to address the massively diversified transportation system in India.

Buying a used car? Here's what to look out for

New Delhi: The used car market in India is still largely unorganised. Although most major auto companies now offer certified used cars, most of the transactions still take place in the open market.

Maruti, Hyundai, General Motors, Toyota, Tata Motors, Mahindra & Mahindra etc. all sell certified used cars complete with warranty, not just from their own stable but across brands.

There are different stages of checking and testing that these cars undergo, before being certified by the companies.

However, because these cars go through rigorous testing, the companies charge much more than what the neighbourhood used-car dealer would. 

There are also cars sold by these auto companies, without the certifications and the warranty, which cost substantially less, but they would still be more expensive than the dealer operating in the unorganised sector.

There's no reason to be too wary about the unorganised sector, as many a time you can pick up a great deal from there.

Buying a second-hand car is not a bad idea, but if you have the means, most people would suggest you go for a new car- simply because of the fact that there are less hassles involved. A new car is unlikely to give any trouble in the first three odd years at least.

Even if a car is in mint-condition, and has only run a few months or a few miles, it will attract a price much less that its original price, while being sold, because it is a depreciating asset. It is a good idea to keep a lookout for such deals while buying a used car.

"If you buy a new car for around Rs. 10 lakh and want to to sell it off immediately, you can easily shave off a lakh (Rs. 1 lakh)," says auto expert Tutu Dhawan.

The more premium and high-end the car, the better a deal the new buyer stands to get, opines Mr Dhawan.

For cars within the Rs. 5 lakh bracket, Rs. 50,000 can easily be discounted if it is being sold off in a month or two, he says.

Read more at http://profit.ndtv.com/news/industries/article-buying-a-used-car-heres-what-to-look-out-for-374408

2013 : A year of hope for the future.

This year from January to November, car sales in India fell by 10.32% to 16,74,450 units as against 18,67,176 units in the same period last year.

Besides cars, the commercial vehicles segment was also a bad hit with economic activities such as mining and infrastructure projects came to a near halt.

It led to SIAM to seek stimulus package for the sector from the government but in vain.

This year turned out to be a tough year, but the auto industry, however, has not given up hopes. It is desperately looking to come out of the slowdown and the Auto Expo, scheduled to be held in February next year, will be the perfect platform to make a comeback.

Shriram Automall

Important factors that affect the resale value of your used car

All the care that you have been doing for your car over the years will actually pay you off at the time when you want to sell off your car. The resale value that you fetch will determine how successful you were at your task. But what are these factors that determine the market price of your car? Here are some that might be of help to you: 

 1. Mileage: The mileage your car delivers is probably one of the most vital aspects that would determine the resale value of your car. Lesser the kilometres recorded in your car, the better the price you will get. On an average, 10,000 – 12,000 kilometres per year is considered to be about average; anything that’s more than that will fetch you a lesser amount. 

2. Condition: All kinds of dents, scratches, chipped paints and holes add to the negative value for your car. A well kept car always pays off well. Apart from the exteriors, the interiors of the car can also make a lot of difference in the resale value of the car. Door panels, seats, headliner, carpet, and console all need to be in a good condition, even if the doors don’t open freely it is likely that this will depreciate the value.   

3. Make and model: Certain make and model like Maruti’s Swift, Alto, Honda’s City and Hyundai’s Accent are more in demand in the used market than others, which means they will definitely fetch you a higher value depending on their year. All imports too have a high demand in the used market. 

4. Accessories: All electric accessories like the power windows and door locks, the interior lights, the radio or CD player and heater or A/C Controls, all need to function properly to add to the total amount.

 5. State of registration: All motorised road vehicles are tagged with a registration or licence number in India. The number is issued by the district-level RTO (Regional Transport Office) of respective states. Different states have different registration values, for example, a car that is registered in Rajasthan will have a higher registration charge than the one registered in Haryana. 

6. Season: Though it’s not that a big factor that would affect the resale value but can surely add to the price. Try and sell your car in a period like Navratras, Diwali or year end, when people are in a mood to splurge in shopping and have a reason to buy a car.  

Read more about used cars in India at: http://www.zigwheels.com/news-features/used-car-guide/factors-that-affect-the-resale-value-of-your-car/8390/1

SENTIMENT AVERTING FROM INVESTING

The last 12 months for automobile industry has been a steady decline. It has been an extremely tough year especially the commercial vehicles have been hard it. As per TOYOTA it’s sentiment that is preventing people from investing.

As per SIAM GDP growth of 4 to 4.5% is not enough, to experience super growth in the automobile industry it should be 6.5-7 or 8%.

India has potential to be competitive in manufacturing provided the industry concentrate on people, skill development and our process that adheres to concentration on quality. And secondly look out at strategies for market India and factory India.

If you want to know more about the used vehicle industry click here: http://www.youtube.com/watch?v=aSj1oAY6goE

SHRIRAM AUTOMALL TO EMERGE AS A CENTER FOR USED CARS

Indian automobile second hand market is booming as people from all over the world are attracted towards the used cars. With the improved quality of used cars in India and wider selection, greater acceptance for the used cars among the customers is observed.

Pre–owned car dealers are more in demand in this financial year in contrast to the new car dealers. New car sales have witnessed a great dip due to the resilient slowdown of economy. Car buyers in India are extremely price sensitive. Fresh new cars attracts huge amount and empties one pocket. The acquisition cost is also very high as compared to used cars, excise duty and road taxes have increased which in turn makes the used cars a good value for money.

Pre-owned cars purchased from the reliable source is a must, one need to keep in mind to make deals in the used cars segment intelligently as what you get is a used car converted into a new car that is optimized for trouble-free performance and needs minimum maintenance.

The figures are estimated to be 1:1 for every one new car, one pre -owned car is sold.

Used cars have always been in demand and with each year passing by, the future of used cars seems to see no dull moment.

Mr. Sameer Malhotra CEO of Shriram Automall said, “their effort lies in setting the thrust for the owners to dispose off their used cars and at the same time, empowered the small fleet owners to fuel their entrepreneurial ambitions by acquiring the used cars.”