Monday, October 3, 2011

Test Drive


We are in the market to buy a car. One of the pretty neat concepts, at-least for me is that we really dont have to drive down to the car dealership to drive one of the new cars. All you have to do is call them up and one of the salesman will arrive at your door-step and you can drive the car around. And the salesman would also run through the car features and other details. Pretty cool. It saves you time to get down to the dealership and of course it is a hassle-free experience.

The bad side is that if you stay within the city, you really cant get the highway feel for a vehicle.

It amazes me to see the car industry booming given the space constraints. Most people have multiple cars and a large percentage are upgrading to sedans (VW Jetta, Hyundai Verna, Honda City etc). Given that car is not really a good financial investment, it is luxury item (on the balance sheet at least), I'm surprised to see them sell like hot-cakes. The real good cars have a wait time of 4-8 months and you need to plan ahead. If you are like us and looking to buy immediately, the choices go down considerably.

The salesman are paid slightly differently when compared to the US. Each of them have fixed salary approximately 10,000Rs pm and they get 1000Rs for every car they sell. Some of them whom I have been talking do, sell approximately 20-25 cars a month i.e 1 car a day. I guess the average cars sold per salesman is lesser, but still that is a large number of cars ! We better get the roads ready to get this many cars on road.

Of course, second hand cars are not recommended by everyone I'm talking to !

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