These points are indeed valid. But then my grandpa has his own misconceptions. He says "A Petrol car's mileage is unpredictably varying, but not in the case of diesels" and
"I want a car with a boot. It'll give the car protection, and a balanced look"
But as you said,
if we aren't able to decide on either, we will go in for the car in the best condition we find, irrespective of if it is a waggy or an Ax.
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@Akash. Initial plan was to just buy a used Waggy/Santro for Rs 2.5 lakh max. The point now is that, gramps wants a used car, as he says he will be using the car for not too long. He had once upon a time, fixed a budget of 6.5lakh, and was zeroing on the DZire VDi and the likes. But then, he changed his mind and started contemplating a Figo, and finally, a used Ikon or Fiesta. The budget is absolutely not flexible, and if at all he requires a new car, we'll probably sell this used car, making a loss of not more than Rs 30k or so.