Hatchback, Sedan or a mini SUV? - Indian buyers often take this decision depending on how much they wish to spend. But, here is why buying an expensive car is actually cheaper for you in the long run.
Buying a car is a big emotional and financial decision for Indians. There are a thousand things to be considered before picking a car. It is a symbol of achieving dreams, status and affluence.
Many people tend to buy a hatchback as their first car and gradually upgrade to a bigger car in a few years. This might look feasible in the starting, but in the long run, you end up spending more.
Here is a simple guide to tell you how it is better to invest in a slightly expensive car for one time, rather than switching cars in a few years.
1. It's all in the Numbers.
For instance, if you shell out ₹ 7 lakh for your brand new i20 right now and plan to upgrade to a Hyundai Verna after 4 years- that comes around as a ₹ 13 lakh investment for you. After 4 years, you will not get more than ₹ 4 lakh for your i20. This means you will face a loss of at least ₹ 3 lakh plus ₹ 13 lakh will be spent on the new Verna. All this amounts to spending over ₹ 16 lakh on two cars within a span of just 4 years.
However, if you can wait for 1 more year in the starting and buy a Hyundai Verna as your first car, you will end up spending only the price of one car i.e. ₹ 13 lakh.
2. You can experience a Better Built.
Expensive sedans or SUVs are fitted with better quality parts, equipment and longer-lasting engines. As the car ages, it shows fewer signs of wear and tear than a hatchback. For example, a hatchback may need a major maintenance service after 1 lakh kilometres but a sedan might not require it even after 2 lakh kilometres.
This means that if you plan to keep your car for 8-10 years, then investing in sedan is a feasible option.
3. You get to Drive a Better Car.
Hatchbacks come with lot of compromises in space, interiors, engine performance and looks. With a sedan or SUV, there is no such compromise. You will get to drive a premium car from the start. You would be able to make more memories by taking long trips with your family and friends.
4. You even get a Good Resale Value.
Sedans & SUVs have a better resale value than any hatchback. You can’t get more than ₹ 3.5 lakh after driving an i20 for 4 years. But you can easily get ₹ 5 lakh for a sedan even after driving it for 7 to 8 years. Hence, price depreciation is much lesser on a popular sedan or SUV than any hatchback car in the market.
It is therefore advisable to wait a little, and get a car that is economical and proves to be a good financial decision in the following years.