Tips for Buying a New Car

Even though automobiles have become indispensable for most people, especially those living in metropolitan cities, few have adequate knowledge of how to purchase one. However, this fact has not deterred people from purchasing cars; not by a long shot.

According to estimates, 30.92 million motor vehicles were produced in Financial Year 2018-19. (1)

Do you find the innumerable car models and brands intimidating? Don’t worry. You are not alone.

Countless companies, both national and global, have been increasing operations and productivity rapidly. At such a time, consumers often face confusion when trying to find the perfect vehicle.

Listed below are some tips for buying a new car that can greatly influence whether you end up with your dream vehicle or a car you regret possessing. 

1. Choose the Car Based on Your Purpose for Purchasing it

A car buyer can have several reasons for purchasing the vehicle.

• Some may require a vehicle for commuting that will let them drive to work every day.
• Others may be looking for a family car that allows all members of the family to travel together easily.

When you determine the significant characteristics of your perfect car, choosing a vehicle becomes simpler. For instance, if storage is a priority, only look at vehicles that offer ample space and not the ones that come with a smaller boot capacity. 

2. Start Researching

Once you know what features you want, researching is the next integral step in determining your ideal car.

• Look for vehicles from various brands that satisfy your requirements. If you want an SUV, look for reputed companies that produce cars in that category. Determine around five or six potential choices online.
• Apart from understanding what features the car include, assess what each vehicle lacks.
• Write down the pros and cons of each model to streamline the process.
• Do not forget to go through the user reviews for a car online. They can be useful indicators of whether the vehicle performs as advertised.

Do not hurry with this research part. Spare ample time to understand the intricacies of the cars.

3. Determine the Total On-Road Cost of the Car

When your research is complete, you will be in a better position to judge the budgetary requirement to purchase a vehicle suitable for you.

Most websites list the on-road price for a vehicle. This price includes an extensive list of costs, including -

• Lifetime road tax payment,
• Mandatory insurance charges,
• State registration charges, and
• Dealer handling charges.

However, this does not reflect the true expense of the vehicle. You must also account for additional expenses, including maintenance costs.

Pricier high-end cars have higher upkeep costs. Therefore, it is crucial that you choose according to your spending power.

Don’t overspend on a car, because maintaining it can bleed your finances dry. Instead, pick a vehicle you can afford to manage for five to ten years after purchase.

4. Visit a Dealership and Request a Test Drive

Online research is well and good, but to understand the true worth of a vehicle, you need to approach a dealership selling that particular model. Speak with the sales personnel there to assess whether your preferred model provides impressive on-road performance.

Further, do not forget to undertake a test drive. Focus on how the car operates, along with its brake capacity. As a driver, you would understand whether a particular vehicle is right for your needs and driving style during such test drives.

Another aspect you must check is the performance of the engine during test drives. Without proper functionality in the engines, the other features of the vehicle will hardly be enough to compensate for it.

5. Check for Available Discounts and Offers During Festivals or Special Sales

During certain festivals and promotional activities under the company, buyers may receive attractive discounts on cars. After you have shortlisted the car, inquire about available discounts on its price. If the dealer is unwilling to disclose information related to such discounts, you can instead search for the same online.

In India, Diwali is the prime time during which most companies offer discounts and offers on various car models.

One of the best tips for buying a new car - availing offers and discounts can, in some cases, lead to attractive price cuts.  

6. Check for the Perfect Insurance Provider

There are a few factors you must remember about a car insurance policy:

• According to the Motor Vehicles Act 1988, it is mandatory for car owners to purchase a third-party liability car insurance for their vehicle. Failure to do so can attract hefty traffic fines amounting up to Rs. 2000 or Rs. 4000 for repeat offenders.
• While availing third-party car insurance is mandatory, comprehensive insurance plans, on the other hand, offer better all-round coverage. That is why it is best to avail a comprehensive insurance policy for a new car.
• Avail the insurance policy from online insurance from Digit. We offer their policies at an affordable premium and allows you to save on the usually expensive comprehensive insurance policies.

It is also crucial to learn about the features and benefits of each plan and insurance provider before purchasing a policy.

You don’t need to be a car enthusiast to distinguish between a decent car and a brilliant one. All you need to do is pay close attention when at the dealership.

If you want to maximise your benefits from your car dealer, here are some factors to look for  -

1. Look for Free Car Accessories

Several car dealers offer some necessary accessories on the purchase of your vehicle, absolutely free of cost. Thus, to maximise your benefits from car dealer, look if they are offering car accessories for free. Few of the accessories to look for include -  

• Floor mats and seat cover.
• Battery chargers.
• Alloy wheels.
• Number plate.
• Jack.
• Toolkit.

2. Check if You can Negotiate Prices

While the car dealer would want to maximise their profits from the car sale, you can negotiate the price of the vehicle you can purchase. Go through the terms and conditions of the purchase and look for the cost additions that you can do away with. For example, you can choose to purchase the car without any unnecessary accessories.

Also make sure you put your bargaining powers into play and you can save a substantial amount by bringing down your vehicle’s sale value.

3. Check for Easy Financing Options

Check if the dealer offers easy financing options. For instance, you might want to purchase the car on EMI or through a car loan. Make sure your dealer offers the options through which you want to make your purchase as per your convenience.

4. Seek Out Warranties

Check if your dealer offers warranties for different car carts. Verify whether the warranty for your preferred vehicle depends on the age of the car or number of kilometres driven by it. This

 Some car producers also include free servicing for the first few times. Inquire about the availability of such free servicing terms and conditions at the dealership before purchasing a car.

5. Look for Annual Maintenance Offers

Maintenance cost for cars can be substantial if you are using your vehicle daily. There are several dealers that offer the perk of a free annual maintenance on the purchase of a car. You can save a sizeable chunk of your budget if you can avail this perk from your dealer. So make sure you research and find a suitable dealer.

Always be a smart buyer. Do not take the car information at face value. Verify everything you learn by cross-referencing online reviews about the vehicle.

If you pay close attention to these tips for buying a new car from a dealer, buying the vehicle of your choice should become more straightforward.