No, the Nano car won’t kill the used car business here, but it sure is freaking out new and used car dealers in some countries…and for good reason.
The Nano car is manufactured by Tata Motors in India and they plan to sell it initially all over India and China.
This goofy looking car seats 5 adult humans, has a 624cc 2 cylinder motor and gets whopping 60 mpg. Okay, its a little tiny micro car that gets great MPG. Big deal. We’ve seen cars like this before (Remember the first Honda 600?). Uh, probably not because…
…the Nano car costs only $2000.00 to $2500.00!
And yes, it is the super low price that has new and used car dealers in some countries absolutely freaking out.
But why don’t we who buy and sell used cars for profit in the so-called “first world” have anything to worry about?
Because the Nano, or any car like it will never sell for that cheap here. And the reason is because the cost of labor is too expensive here and all the government mandated safety regulations would require a million things be added to the car like special bumpers, side impact whatever that would weigh it down, thus requiring it to have a much larger motor, etc., etc.
I don’t think a $2000.00 new car will ever be sold in the U.S. (sadly), but what about someone taking the same idea and adapting it to here and maybe selling it for $10,000.00? Hey, that would still be super cheap by U.S. standards. I guess they would have to build it without union labor, but I still doubt it would impact the used car business in a way that wouldn’t be easy to adapt to.
The writer has a point. Our U.S. Government will mandate more safety features and other things as well that will increase the price dramatically. The idea of a more effiecent vehicle is always good, in todays economy and the price of fuel, we all could benefit from a more efficient automobile. Besides we all know that most 95% of vehicles goes down in value, alot of people still buy used vehicles, todays cars, if taken care can go a long way, most people just get tired or bored of their own, so they upgrade or change type of vehicle. I think will be ok. Well, thats my 2 cents.
Yeah, exactly! I remember reading about the Nano at least two years before it hit the market. So even if a cheap “peoples car” showed up in the U.S., the only people adversely affected by its introduction would be someone that was totally out of touch with current events and had a large inventory of used cars. The same thing happened to large used car lots that were stuck with big gas guzzlers when gas hit $4.00 a gallon. The little guys who was even slightly aware of what was going on would know that it was arriving…and would adjust and continue to profit because they knew enough to have bought at the right price…CHEAP!
Nah, the reason it won’t sell in the US – most of us are taller and heavier than people in India or China. The average American stands 5’6″, now think of putting 5 of them in a car this small…it’s not a pretty picture.
Besides, even if we could fit, we wouldn’t because to be honest – that car is uglier than the Yugo and I really can’t see tooling down a major highway (with big rigs, Escalades, GMC pickups, etc) at a swift 40mph:)
I would not worry about it because not everyone will even like that car. Also, would you put your chieldren in that car when you have 2000 – 6000 lb V8’s on the freeway next to you? Neh….
I am very sure that if I survey all my friends about owning this car, 80% of them will not want it. Maybe some VW Bug loving girls will, but that’s pretty much it.
Hi there I like your post – good stuff
Hi. I read a few of your other posts and wanted to know if you would be interested in exchanging blogroll links?
I haven’t heard anything about the Nano car since it first came out. I wonder if they are selling a lot of them?
I have no idea Chatte what is going on with the Nano car either since its introduction. I’ll have to check that out. The only Nano I hear about now is Apples Nano.
Steve
Thanks for the insight. I truly believe that you are correct in what you say and will keep reading your blog.
I hear Nano (modified for better safety etc) is entering Europe next year at about $4000. Also, most people drive alone, only a handful two with a kid or two. Yes, it would be risky on freeways. Not worth taking it there!