The cost of ownership of petrol/diesel-powered cars is going through the roof. Consumers have started switching to alternative fuel-powered vehicles like CNG and EVs. Speaking of EVs, we all know that they are not easy to buy as they are priced fairly higher than their ICE counterparts and when buying one, getting a good price for your current car takes the burden of upfront cost by a good margin.
The 101% Resale Value
Well, one of MG’s customers in Pune was fortunate enough to get a 101% resale value on his MG Hector (Smart Diesel variant) when he decided to upgrade to the MG ZS EV. Yes, you read right, 101%. Of course, this is on the ex-showroom price when the customer bought the Hector. The customer got a trade-in value of ₹16.5 L for his old Hector and purchased the ZS EV by paying just ₹7.95 L. It is not clear how old the Hector was however, given the 101% number, the Hector was bought at ₹16.33 L (ex-showroom) approx. When the car was launched in 2019, the ex-showroom price of the Smart Diesel variant was ₹15.48 L however, after the BS6 update the price of the same variant was increased to ₹16.32 L in April 2020 hence, it is safe to say that the Hector was bought after Apr’20 and could be around 10-13 months old. In this case, the resale value is really good considering the market trends.
Such a good resale value for one’s old car would certainly encourage them to exchange it for an EV. In fact, people should be incentivized for giving up their ICE-powered vehicles and switching to electric vehicles. Something the government should add to the FAME strategy. Your thoughts?