Buying a car is a very exciting task for you and your household; it’s also among the largest investments you will be making in your life. But purchasing a car also comes with a lot of uncertainty. Not all are automotive specialists and for many buying a car would be the means of transportation for them and their family. Automobiles might appear desirable in TV commercials and on the front page of a paper but choosing the right car for you is the most important decision.
In contrast to popular belief, not every dealer is a cash sucking vampire but your lack of awareness is the biggest boon for the dealer waiting to rip you off. Just a little preparation on your ending is going to keep you conscious and informed upon your next visit to the dealership.
Read this Before Buying A New Car
1. Which car should you choose?
There are 3 rules that you need to follow when creating the purchase of your vehicle.
Ask yourself —
What kind of car do I want?
Can it be affordable?
An SUV might be desired but a sedan or a hatchback will hamper your purpose and your budget also. The space, practicality, horsepower, safety, quality, refinement, attributes, brand value, resale value, color, parking space should all be your factors for consideration. Different trim levels on a single version could be the biggest differentiating factor that may influence your choice. The normal life of a vehicle ownership is 5 years and you want the right car to stay with you for that long.
2. Buy what you can afford
Larger discounts will seem lucrative to get a larger car but keep in mind, a bigger car includes larger fuel bills, expensive spares and also bigger EMI’s. The sales man will try to up-sell a higher model but stick around to your needs. You will also have to factor in the cost of additional fees apart from the ex-showroom cost like that of road taxation, registration, insurance. For a city like Mumbai, Octroi also becomes compulsory and can escalate the expense of a vehicle by 15-20% of the car’s cost. In addition, you need to factor in a leeway of 5-10% on the last price in the event of hidden or unexpected charges.
Compute the EMI sum for your car loan you will be paying monthly, which should not be more than 15% of your post-tax monthly income and then finalize on the version you would like to purchase. So, if your monthly premiums to Rs. 50,000/- article taxation, your car EMI should not be greater than Rs. 7,500/- for a period of 5 yearsprior to creating the purchase value of your vehicle about Rs. 4.5 lakhs.
3. Type of fuel
Your driving cycle must determine the type of fuel you need. But should you drive over 2000 kms a month, petrol makes hardly any sense for you. Petrol cars tend to be rev joyful and provide a poor economy run compared to diesels. Whereas diesels are mildly expensive to keep over petrol cars. But diesels are fun with their high torque and superb fuel economy. Diesel cars additionally price over a lakh more than their petrol counterparts, thus making it longer for you to reclaim the value of your vehicle.
If you’re frequenting between office and home inside city limits with weekend excursions to the mall and theatre, elect for petrol. Scheduled maintenance and ideal driving will also offer you a decent market. You might even opt for a CNG kit in your car to optimize on the fuel economy. Few manufacturers provide mill fitted CNG automobiles and therefore are a very good option to pick. But, CNG may not be easily available and will pay for a lot of boot space too.
4. Resale value
Purchase a favorite version if you happen to change cars every 2-3 years. Even though the discounts will be today, it is going to get you the good deal later in the second hand industry. A less popular model will get you good discounts now but will bring back very low value to the vehicle. Overall, your discount wouldn’t be well worth the depreciation down the years.
5. Do your assignments
The dealership is the last place you must visit if you want to look about a car. Do not expect the sales guy to have the information that you want. Most salesmen will merely let you know what they’ve been educated about the car or maybe even less than that. Consult with the net; you are going to get innumerable reviews, comparisons, possession details on several blogs and automobile forums. Speak with your friends, relatives or owners of other cars and learn from their experiences. That car crazy friend could be your saviour. Your mechanic will also be able to inform you which car will provide you the smallest worries in maintenance.
6. Search for financing choices
The dealer will insist on getting you finance through him, but look at other choices to understand which financial support is offering the best deal. Be mindful of any 0 percent interest schemes, as they are currently banned by the RBI. You could opt for the producers’ own funding scheme, which is usually more reliable. A great deal of sites will inform you the best possible loans available and you can choose accordingly. Finding the ideal car loan interest rate before-hand will leave more space for negotiations. You might also go back to your own bank and work out a deal that is mutually beneficial. Your long term relationship with the bank will surely come in handy here.
In case you have savings, you can use them to create at least 50 percent of the down-payment on the vehicle, while the remainder can be paid with a car loan. A shorter tenure period will also keep the interest lower and you’re able to regain the value of your automobile sooner. Look for EMI calculators online.
7. Search for insurance schemes
Different insurance companies have different features to pick from. Do a market survey and compare who provides the most features with the least premium. Again many dealers have a tie-up with insurance providers, so think about other offers before you sit down to listen to the dealer’s insurance strategy. Some dealers also supply with Rs 1- insurance coverage, but you’d end up paying a higher premium over the car insurance.
In case you have a no-claim bonus out of the past car, you could easily get it moved to your new automobile, which will get you a discount in your premium bringing down the insurance price of the car. The insurance company will give you a no-claim certification, upon asking termination of the policy, which will get you the discount to the new car’s insurance.
8. Examine several different dealers for the Identical brand
A mainstream manufacturer will have at least two dealers in a town; receive a quote from both the dealers for the same vehicle. At times, a dealer may not give you a fantastic offer or not throw at any discounts or freebies as part of this package, while some other dealer would acquiesce to accomplish this. Another variable you get to test here would be draw out comparisons between the dealerships.
Few dealers will choose to check over your benefit, provide you the very best cost, possess the earnings and staff members look after you and pamper you till you make the payment; whereas another dealer may take you for granted. Considering that you are investing in a massive sum in buying a car from the dealer, you get to choose from where to buy. Your comfort with the dealership are also a determining factor. You want to be sure of the dealer and the sales person you’re purchasing from. If they do devote to you for freebies or accessories, then get it in writing to prevent ambiguity.
9. Have a test drive
Never go for a car at face value. What you see on your TV or computer screen is completely different from what the car may have to offer you. Go for a test drive and check all details of the car. It is much better to go with the family to find out if it meets the requirements of your family. An automobile with less head area will appear smaller than it is, while bigger windows make the cabin look larger. Little things like these issue and could conversely mean that you might wind up shifting your buying choice about the car, but finding the right automobile is more significant in the long haul.
10. Discounts could be deceptive
Offers and discounts come with a term called’Conditions Apply’ that leave you non-eligible for at least 60% of the reductions supplied by the dealer. Discounts are offered in the shape of loyalty incentive for existing clients, exchange bonus, discount on loan, dealer discount, corporate reduction etc.. You may surely have to bargain hard and play your cards right to find the best price from the dealer. Moving to multiple dealerships will arrive in effect . You may find out which dealer is supplying you with the most discount on the car and take the negotiations further.