Despite the presence of a large variety of medium and small cars in the Indian market, local as well as foreign, the Indian consumer has a strong preference for foreign luxury brands. The family car is one of the most essential purchases made by the middle class Indian family as it is both a symbol of upward mobility and class status. At the same time, the Indian consumer is aware of the need to eventually dispose of this asset while some economic value can be traded for. So one of the first things you need to consider, especially when buying a foreign car such as the Honda, is how much you will be able to sell it for once you are ready to buy another car.
In 2015, the Honda City, which is one of the limited models to have found immense popularity in India compared to other parts of the world, partly due to its ability to navigate along Indian roads, was selling on the used car market for anywhere between Rs 550,000 to Rs 700,000. However, there are a number of factors that could make your car sell for a price near the bottom or top of this range.
Fuel consumption
One of the first things any potential buyer will expect to ask you is about the fuel consumption of the car. Since India is a net importer of fuel consumption rates or mileage is a major concern for a car owner. Honda models typically offer a fuel consumption of about 20to 25 kilometres for a liter, although the actual figure for your car may vary according to the exact technical specifications and general condition of the car. If the fuel consumption of your Honda lies between this range after 5 to 6 years of running, you will be able to command a price of around Rs 500,000 at the time of resale.
Kilometers Traveled
Any sensible buyer would want to know how much the car has been driven. Given the condition of the roads in most parts of the country, it does not take a lot of driving to give any car a good shaking. The distance your Honda has travelled during the period of your ownership will influence the price it can fetch in the resale market. It is important to be honest about how much the car has been driven. If you are in the market to buy a Honda, it is advisable to take a trusted mechanic along since some unscrupulous owners tend to cheat on the dials.
Age of the Car
The general age of the car influences its value in the resale market. The fact that a buyer or seller is in the resale market is enough evidence to confirm that they have a tolerance for cars that are older and the associated problems that come with it. The older the age of the car, the cheaper you can get it for. However, be aware that owners often replace older parts with newer ones which can encourage them to demand a higher price considering the performance of the newly added parts. If you are not knowledgeable in the technical matters, taking a mechanic or experienced car owner along can be very helpful.
Market Trends
You also need to look at trends in the resale market if you are out to get a Honda. If the general economic condition is poor, the demand for used cars goes up, which can lead to a slight increase in the price of a used Honda. This is good news if you are a seller and slightly disturbing news if you are a buyer. Depending on your urgency, it is advisable to wait out the rising trends until the prices stabilize before you go out to buy a used Honda.
