Almost-new cars at half the price

And we aren't talking of just about any cars. Used luxury car prices are going down, down, down ... It sure looks like a good time to pick one of them

And we aren't talking of just about any cars. Used luxury car prices are going down, down, downu00a0... It sure looks like a good time to pick one of them

Losing ground: Pre-owned BMWs (above) and Mercs are now cheaper than ever before file pic

If you're planning to buy a second-hand luxury car, maybe you should do it now. You can pick up a six-month old beauty for half the price of a new one.

Blame it on the economy, the pink slips, salary cuts and the suddenly-unrealistic EMIs that's leading people to drop their BMWs, Mercedes and Land Cruisers like hot bricks.

While some prefer to use their company transport, others have gone in for smaller cars. "I gave up my Skoda for Rs 4.5 lakh which I bought for Rs 6 lakh five months ago. And now I own a Maruti. I'll buy a luxury car when the market improves," said Bopaiah, a software professional.
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No buyers

As a result, it's raining cars at used-car showrooms in the city. But not much of business is outward-bound.

About a hundred such showrooms saw the sale of 400 to 500 luxury cars in February 2008. But this has come down by 30 per cent this year. Add to that, luxury car owners giving up their vehicles at half price.

"A used BMW car that was Rs 65 lakh last year is for sale atu00a0 Rs 45 lakh. A Mercedes Benz E series that ranged from Rs 45 to Rs 60 lakh is now available for Rs 30 to Rs 35 lakh. Honda Accord that was above Rs 19 lakh is available for around Rs 10 lakh. Similarly, a Toyota Corolla that cost between Rs 14-15 lakh has come down to Rs 8-plus lakh," said C M Giriraj, who used to run Suhas Cars, a used car outlet in Jayanagar.

Shut shop

With business going all the way south, more than 10 used car outlets have had to shut shop.

"I have closed my showroom," said Giriraj. "I used to sell at least four used luxury cars last February. But now, selling one car has become difficult. Another travel agency sold about a thousand cars as it couldn't pay the EMIs."

Few takers for new cars
(Car sales statistics in India, year-on-year)
Car sales declined 3.2 per cent with 1.10 lakh car sale in Jan 2009
Hyundai saw a 13.5 per cent decrease in sales
Tata Motors witnessed 9 per cent decline in its sales
Honda Siel cars sales fell by 26 per cent
(Source: Society of Indian Automobile Manufacturers)

Old or new?
Auto consultants say it's better to invest in new cars than used ones. "Prices of new vehicles have come down and secondly,u00a0 the interest rate on loans for used cars is much higher. The depreciation value drops on the purchase of a used car," said Sanjay Kumar, an auto consultant at Mandovi Motors.u00a0