New Car Buying Tips: Get the Car You Desire

Buying a new car was till recently was the middle class Indian's ultimate dream. With the increase in disposable income for many middle class and upper middle class households in the country, buying a car is fast becoming a reality these days. Purchasing a car should be a pleasant experience rather than becoming a hassle.

Post liberalization, a host of options is now available for car buyers across the country. Many people feel confused by the profusion of models now present in the car market. Most people feel that the salesman at the show room will not give them all the required information they need to make a decision. Hence, it is not a bad idea to do a bit of research on your own and find out which car and model suits you depending upon your budget.

Many people find it quite embarrassing to be quizzed by the salesman about their social status and the car that will fit their actual needs. For the more conscious buyers, do a bit of fact finding on which car will actually fit your needs. It is recommended that you purchase a car that does not knock off your bank accounts, and at the same time, you are able to enjoy the car you purchase.

In the internet age, a lot of car dealers have set up their websites and blogs. Moreover, there are other sites which display comparative information about car manufacturers, models, and their prices. A visit to these websites will help you spruce up your knowledge about the model that you intend to purchase, thus doing your homework before you go and actually purchase your favourite car. Also, doing a bit of study online, you come to know about the approximate price range of the model of your choice.

Sometimes, car manufacturers issue a recall for defective components installed in the car. This is no cause for concern. In most cases, the car dealer will replace the defective component for free. It is always a good point to ask the company about what is their replacement policy about defective components and how the car is covered under the manufacturer’s warranty.

All of us are aware that the value of cars depreciates, but few know that depreciation hits you as soon as you drive the car out of the showroom. Usually, the depreciation value of a new car is higher than its older cousins, so the owners of new cars have to bear with higher depreciation in the initial years of ownership.

Second hand car buyers do not have a choice of colours or models, they just have to pick up what is offered. New cars are often protected by warranty, but old cars usually have run beyond the mandatory warranty offered by their manufacturers. The car market is a buyer’s market in India, which means that buyers can bargain for a better deal. However, as described earlier, it’s better to do some homework before hand.

Especially, if you are trading in your old car and going in for a new model, a better homework on bartering deals will be helpful to secure a better deal for your old car. It’s always a good idea to secure finance before you select the dealer. In this way, you save on the cut that might go to the dealer. It’s not wise to hop in to the very first dealership and make your purchase from there itself, rather visit a few more dealerships and make substantial inquiries. A well stocked dealer will be able to offer you better prices on his car.

Not many of us are able to buy the car by paying all the cash upfront, so financing is a viable option. Work out how much you can pay as down payment and what will be the most viable EMI that you can afford to pay on a monthly basis for your car. Credit cards are usually the worst payment instrument, since they charge a very high interest rate on their use.

So, it is better not to get tempted to use a credit card for purchasing cars. While choosing between finance offered by dealers and finance offered by banks, it’s a better idea to go through finance offered through banks since finance from dealers can be expensive. Some independent finance companies offer loans at lower interest rates and fast approvals, so include them in your search for a viable financer.

Buying from a dealership that offers a warranty makes more sense since you always have someone to have recourse on in case something goes wrong. Sometimes, there are car auctions which can help you fetch a cheaper car, but there are risks involved in such a purchase.

Auctioneers seldom give a chance to bidders to check out the car, so there are many risks involved. Also, it's not the most suitable venues for those how have no knowledge on how to bid. At the same time, it’s good to possess some mechanical knowledge about cars in case you plan to buy a car from an auction.

Some people plan to buy cars independently from private owners. So, you might buy from them in case you know the owners thoroughly and are very familiar with the car’s condition. Anything further may leave you in the lurch.

While this write up intends to provide you with little tips, the remaining bit depends much on your commonsense. Matters like whether you want the car for normal city driving or offroad, car size and safety features, diesel or petrol engine, how much insurance you can afford, and other issues will affect your purchasing decision.

By: Nihit Aurora

Related Books:
The "How To" Buy a New Car, Made Simple
How to Buy a New Car at the Best Price
2004 New Car Price Guide