8 tips for first time car buyers
For a week, Vinay Kumar's phone was flooded with calls and congratulatory messages from his friends and relatives. Even after a fortnight, the messages were still pouring in. The occasion - Vinay's first car, a luxury sedan. Vinay's tale represents the emotions and aspirations of thousands of Indians attach with their first car.
Apart from a grand moment, buying a first four-wheeler is a long-term investment that needs to be approached with careful preparation. Here are 8 effective tips for doing so:
1. Establishing a realistic budget
Having a realistic budget is the first step towards your dream purchase. It does not just encompass the price of the car. Consider the cost of fuel, registration, maintenance, insurance, EMIs, etc. Know how much you can afford to spend per month without compromising on other needs.
With so many manufacturers and models available in the market, the choice can be overwhelming. This is where research plays a critical role. Take time to know about the cars that suit your requirements.While most answers are available online, it is important to visit showrooms, get a test drive, talk to executives,mechanics, and other buyers to get a complete perspective.
3. Knowledge about car financing options
If you are planning to avail a car loan, choose a reliable financier who offers flexible repayment terms and a competitive rate of interest. Most car showrooms have tie-ups with major lenders; however, you are free to check online for the best car loans. Loan processing fees, the time required for disbursal, and the documentation should be your key considerations.
4. Comparing several models
In an intensely competitive market, car manufacturers are trying to woo buyers with choices matching their needs. You need to compare several models before zeroing in on the one you intend to buy. Compare mileage, variant, type, specification(s), engine capacity, etc., of the different offerings. There are various portals that give instant car comparison online.
5. Consider re-sale value
Your car is an asset. Remember, the moment you drive it home, its price begins to depreciate. Generally, the price goes down by 30% within the first year of its purchase. Before buying, calculate the price you would get in the future if you decide to sell it. Knowing the price would help you calculate the car loan amount for the future.
6. Prepare for extra expenditure
Don't neglect the hidden costs in the excitement of purchase. Watch out for:
- Advance EMIs
- Service charges
- Registration costs
- Delivery fees
- Taxes and levies
Unlike popular perception, car dealers do offer big discounts and often sweeten the deal with freebies like free insurance for the first year, free accessories, and even free fuel. Bargain hard with the dealers, feel free to go shopping for the best price. Time your deal well to get a good discount. Festivals, calendar year ends and financial year ends are generally the best times of the year.
8. Don't rush
Buying a new car requires a significant investment of time and money. Hence, don't rush to make a deal. Take your time and calculate all your options before making a final deal. Consider every small detail to seal a profitable deal.
Get in touch with Reliance Commercial Finance to understand the various types of car loans, auto finance and much more.