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petrol cars find no buyers in the used cars market

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#11 21-Jun, 2011 09:36 AM
Arun
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Joined Date: 07 Dec 2009
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It will not be easy or possible for the Govtn to increase diesel prices. This would have a drastic effect on other areas. With the current struggle to contain inflation & increase in lending rates, any significant increase in diesel will be a problem.

best we can expect is increase in diesel passenger car tax for now. I think by this year end, prices of petrol cars should come down significantly to make them affordable. Of cors, the cost of diesel cars could increase much. SO if you want a diesel car, I think buy now. If petrol car, then wait. IMO.



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#12 23-Jun, 2011 09:51 AM
Himanshu
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While deisel and LPG are subsidised, CNG is not. So lets leave CNG out of this debate.

What the government is doing is making money on petrol and providing subsidy on Deisel and LPG. However, the problem is that a significant portion of this subsidy is not going where it is intended to go i.e. Busses and Trucks. it is going on deisel cars/MUV/SUVs. Given this policy of the Govt. to keep increasing the price of Petrol, they are in fact supporting this. What will happen eventually is that the petrol consumption will come down significantly and deisel consumption will shoot up. The model of subsidising deisel and LPG from petrol, will not work then. It is pretty simple maths, but somehow, this government is lacking some basic common sense.

Same thing it is doing with the economy in general. In order to tame inflation it is increasing the interest rates. However, that is not checking inflation at all. On the other hand it is curbing the economic growth. Ultimately, it may lead to a fresh recession.

Wonder, what is happening with our government?



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#13 01-Sep, 2011 12:29 AM
Rajesh
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Joined Date: 14 Apr 2011
Location: Goa
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hmm

So I am in horrible condition now as I have petrol Indica and was thinking of selling it and upgrade to diesel car. Selling petrol Indica will make big loss for me plus I may have to add 3 lakhs to amount afterselling car to get diesel one.

I can still run petrol car to another 70,000 km by saving those 3 lakhs. Plus diesel cars will still need expense of 1.5 lakhs on fuel to equate.

So better not sale your existing petrol car for very low price and buy diesel by shelling 2 - 3 lakhs more just for diesel tag.




Driving is privilage, not a right.
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#14 01-Sep, 2011 12:52 PM
Himanshu
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Yes Very true,

No trend can be sustainable over a long period. There would be a lot of people like you, who would not sell their petrol cars, if the price is not good enough. Only those who have some very heavy running will do so. Moreover in cities like Delhi, it is always better to convert the petrol car to CNG. Cost of conversion is less than buying a deisel car, and cost of running is significantly less than even deisel. Ultimately in such cities we may see a shortage of petrol cars in used car market and the price will stablize at some point. It is always near a price hike, you see a sudden demand for deisel cars and sudden suppy of petrol cars. But in long term things even out to a great extent.



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#15 03-Sep, 2011 03:33 PM
Aravindh
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Thats why I keep saying that diesel should be priced in a different format. If the subsdy is cut and the price for diesel is increased even for commercial vehicles like lorry , vans, share autos then all the prices in this country will rise.

So what I feel is that we should have a dual pricing system for diesel. There should not be any subsidy if the diesel is being filled for an own use vehicle. If its filled for t-board then subsidy can be given and diesel should never be sold in cans. 

If a private car needs diesel let him deal with a transport guy and get it. This can also be avoided by checking the number of kms the vehicle has ran after previous diesel fill.

I know there are lot of practical problems that can happen but the whole point is dont have equal price for diesel have it equitable.




The way you drive shows the way you live!!
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