New cars too cause ecological damage

NEW CARS are not necessarily more fuel- efficient or eco-friendly than the older ones. A recent analysis of data on carbon dioxide (CO2) emissions has found that at a time when oil price hike has put Indian economy at risk, CO2 emission —which depends directly on the amount of fuel burnt — from newer cars on Indian roads, is on the rise.

The trend emerged when the Centre of Science and Environment (CSE) analysed the emission data compiled by the Automotive Research Association of India (ARAI) from vehicles produced in different time periods —1991- 96, 1996- 2000, post- 2000 and post- 2005.

In Delhi, the total CO2 load from vehicles has shown significant increase. Experts say this is due to the unbridled growth in cars and two- wheelers and an increase in travelling distances. They warn that the impact of this trend on the energy sector can be severe. “Older cars can emit more CO2 due to poor maintenance and deterioration. But newer

cars, even those produced after 2000 and 2005, showing higher levels of CO2 emissions than the older vintages is unexpected and disturbing,” said Anumita Roy Chowdhury, in charge of CSEs Right to Clean Air campaign.

The CSE made efforts to obtain official fuel economy data for car models that are recorded at the time of certification of new vehicles. “We were appalled to discover that this information is not available even under the Right to Information Act. At atime when the country is going bankrupt due to crippling crude oil prices, fuel economy data of cars is held as trade secret,” said Roy Chowdhury. She said the Auto Fuel Policy requires “mandatory disclosures” of fuel economy data by auto companies, but the government has failed to implement it.

Cars and two- wheelers are responsible for 60 per cent of the total CO2 emission in Delhi. Between 2002 and 2007, the CO2 emission load from cars has increased by 73 per cent and from two- wheelers by 61 per cent. Buses contribute much less —20 per cent. Since they carry several times more people, the fuel consumption per head is significantly low. CSEs estimate for BRT corridor shows per capita energy consumption can be 8times higher in cars than buses.

Car purchase finance options

Financing a car purchase has become rather easy these days. In recent years, a whole lot of financing options have emerged for the potential car buyer. Here we list a few options.

Loan: One of the more famous ways of buying a car is through a car loan. In this case, the car bought through a loan is actually in the possession of the lending institution. The official term used here is “hypothecation” clause?, which basically means that though you own the car, the bank/lending institution is using the car as a security against the loan taken by you. Thus, once you have cleared all the dues, this clause is removed from the agreement.

The self-employed can get tax relief on the interest paid for the car loan (approximately 15 per cent). Also, depreciation to the tune of 10 per cent per annum can be claimed depending on the price of the car.

Hire purchase: In this format, the lender actually buys the car on your behalf and sells it to you on hire purchase. In other words, you hire the car from the lender and own it once you have settled the dues.

The self-employed can get tax relief on the interest paid for the car loan (approximately 15 per cent). Also, depreciation to the tune of 10 per cent per annum can be claimed depending on the price of the car.

Lease: In this case, the car is owned by the financier and leased out to you for a monthly installment, which includes both principal and interest payment. At the end of the lease period, you become the proud owner of the car and the financier transfers the car in your name.

The self-employed can get tax relief on the interest paid for the car loan. However, no depreciation can be claimed as the car is owned by the financier.

Old car or new?

This is totally dependent on your mentality. And of course, there is a price differential. So, it is better that you identify your needs first and then take a call on the one that suits your purposes.

For instance, if you are someone who is looking for a regular upgrade in say, every two-three years, then a second-hand car makes sense. Moreover, if this is your first car and you are trying to learn driving on it, a second-hand car definitely makes much more sense. On the other hand, if you are someone who is happy using the same vehicle for a number of years, then a new car is definitely recommended.

Of course, there are other important parameters like your negotiating skills and the previous owner. For instance, a Parsi owned car commands higher value as Parsis are known to maintain their cars very well. As a Parsi friend confesses, We do not believe in repair? we replace.? Whereas even the latest model in the hands of a Young Turk (a la Schumacher) would create imageries of burning tyres and engine on an overdrive.

Before buying any car, here are a few things you need to consider:

1. What is your budget for the car?

2. What is your monthly budget for the car?

3. How do you intend to use it? Within the city or even outside the city? (Heavy weight age towards the latter means that you need a MUV or multi-utility vehicle like Tata Sumo, Mahindra Bolero etc.)

4. How long do you intend to keep the vehicle?

Now that you have answered the above, you know whether you want a new or an old car. But before you go for that old car, get yourself a cool car mechanic that is, a trustworthy one who will check the car for you. Ask him to check all the parameters like tyres, suspension, cooling etc.

Hyundai too raising car prices as input costs mount

HYUNDAI Motor India Ltd ( HMIL), the Indian arm of the Korean automobile maker, on Wednesday said it would raise the prices of its products by up to two per cent from the first week of June.



“There has been an increase in the input costs and we have been absorbing it for a while. The situation now is such that we have to pass some parts of it to the consumers,” Hyundai Motor India Ltd senior vice president marketing and sales Arvind Saxena said. He said the company will hike the prices of its various models by up to two per cent. “The price increase will come into effect from the first week of June,” he added.

Hyundai currently sells hatchback models Santro, i10, Getz along with sedans Accent, Verna, Sonata Embera in the country. The companys move to hike prices follows rival Maruti Suzuki India Ltd ( MSIL), which last week hiked prices across various models by between Rs 1,000 and Rs 18,000.

Maruti had hiked the prices of all its petrol variants — the hatchback Swift, sedan SX4 and the Gypsy — by Rs 9,000, while the price of the diesel version of Swift was raised by Rs 15,000. It had also increased the price of all variants of Zen Estilo and WagonR LPG by Rs 1,000 and of Alto and M800 by Rs 1,500.

Prices of all variants of Omni and WagonR Petrol were hiked by Rs 2,000 and that of multi- utility vehicle (MUV) Versa by Rs 8,000. Earlier, in January, Hyundai Motor India had raised the prices of all its models by between two to three per cent.