Car Rentals

Now that the cheapest car – India’s Tata Nano – has been released, the question rises as to what makes cars so terribly expensive. And with the four-wheeled wonder-car costing just over a thousand pounds, this is indeed a burning question. 

Tata – who last year purchased Jaguar and Land Rover brands from Ford – has been struggling with the long-anticipated release. The factory that was originally set to manufacture the Nano cars was closed down due to the unsettled dispute with the landowners in the province where the land for the factory was. The experts predict that the released car will not be making money for its owner for a long time. Even in the short run the return on demand is expected to be low: whilst the cheap car is many a driver’s dream, the supply is likely to struggle to satisfy the interest. 

At the moment, however, Tata Nano is making some noise in the industry because of its outstandingly low price. It costs 100,000 rupees, or £1,366.00, or $1,979.00, and is essentially a dream of many wannabe car owners. It is also the one car when we have to speak not of what it has, but rather of what it has not – and here is the list:

- No air conditioning on standard car;

- No automatic window opening – you have to use the good old handle;

- No automatic steering – only manual;

- No air bag;

As BBC News reports, Tata Nano’s maximum speed is 105km (65mph), it has got a small 15-litre (3.3 gallon) fuel tank, and its bodywork is made of sheet metal and plastic which makes it weigh the mere 600 kg. Plastic (or adhesive) also replaces welding. If the above does not conjure an image of a reliable car, then listen to the BBC correspondent who drove the Nano. Hormazd Sorabjee delights in Tata Nano’s sturdiness; the ease of getting in and out of the car is miles better than in your average Mercedes S-class. To judge by his other comments, the Nano is the next step up from riding a scooter, which makes it potentially ideal for new drivers. Yet the weight is of overall importance – for the five-seater in India is expected to carry twice its load. And although the fuel tank is very small, one litre can apparently last from 18 to 20 kilometres. 

This breakdown teaches us that we are too used to having our cars equipped with every imaginable gadget at the time of purchase. It turns out that you need to have neither air conditioning, nor a GPS steering system to drive a car.  Even an air bag is unnecessary. But what if you wanted to add those features? Judging from various online resources, one air bag can cost at least $1,000; the lowest price for installing air con would be between $2,000 and $4,000; and the GPS automatic steering system would start at under $1,000 and go up to between $25K-30K.  If the owner of the basic Tata Nano wanted to add these features, then even with the cheapest additions the car price would rise up to under $6,000. 

Still, a low-speed vehicle with high-positioned seats, a small fuel tank, and without an air bag is highly tipped to become the safest car out there. Maybe this is the real value of Tata Nano? Whether you answer no or yes car credit and car loans can still be arranged by some vendors depending on your circumstances and selected vehicle.

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