I have budget of 3.7 Lakh for used car OR 4.5 for new car.
monthly running 700-1200km
Preferably i want to go with a sedan (not decided though)
Should i go with Honda city 2004(dolphin/jellybean shape) OR new Tata indigo CS (diesel)
For your running you need a diesel.Go for New indigo CS.
A first hand car is better any day compared to an used to car as you don't know what the car has been subjected to by the previous owner.First hand car=peace of mind. Buy the indigo. And for 1200km/ month, diesel will be economical.