IBB Insights December 2014

1. What’s New !
Make better decisions on buying/selling used cars based on new product launches
1.00
1.03
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1.07
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1.03
1.03
1.00
0.96
0.98
1.00
1.02
1.04
1.06
1.08
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
IBB index tracks relative used vehicle price changes on a monthly basis across the country
YearchangedrivesIBBindexsouthwards.Usedcarspriceindexregistersa200basispointsfallovertheearliermonth.
•Itsthattimeoftheyearwhencardealersstartadjustingtheusedcarpricestofactorintheyearchangewhichislessthanamonthaway.Thishasresultedinasharp200basispointscorrectionintheIBBIndex.
•Whiletheownershipperiodofacarintermsofnumberofyearshasregisteredacontinuousdeclineinthelastdecade,IBBanalysisindicatesthatthenumberofkmsperannumthatownersaredrivingcarshasregisteredasteadygrowthof5%CAGR.Usedcarbuyerswoulddowelltoestablishvehicleconditionbytakingprofessionalsupportratherthantryingtodeterminevehicleconditionbyusingsurrogatemeasureslikeyearofmanufacturing.
What car to buy?
Here’s how IBB can help in 5 easy stepsDec 2014
Information contained in this document is derived from reliable sources, however we do not guarantee its accuracy or adequacy, and are not responsible for any results obtained by the use of it.
Indianbluebook.com
Excise Duty Reduction
General Elections
www.indianbluebook.com
Prices indexed to Jan 2014
New Launch …
Potential Impact On …
Renault Lodgy
Mahindra Xylo, Nissan Evalia
Ford Ka
Hyundai Grand i10, VW Polo
ToyotaVios
Honda City, Hyundai Verna, VW Vento
Toyota New Innova
Mahindra Scorpio, Mahindra XUV500, Renault Duster
Step 1
Get on road price of the new or used car that you have shortlisted. Lets call the value as A
Step 2
Click on http://www.indianbluebook.com/car- features.jspto estimatefuel cost using vehicle mileage. Lets call the valueas B
Step 3
Use http://ibbresiduals.com/to get an estimate of the future resale value. Lets call the value as C
Step 4
Approximate cost of ownership = A-B-C
Step 5
Compare approximate cost of ownership for all the shortlisted models and take a conscious decisionof what car to buy.
Have a used car question ? –ask our experts at ibbinsights@indianbluebook.com
Issue 7
Union Budget
Extension of excise duty
Festive season