Buying Car On Dhanteras? Key Things To Consider While Buying New Car

Buying a new car is everyone's dream and most of us plan to purchase it on an auspicious occasion when festive fervor is high. At a time when we are just a few days away from Dhanteras, many of us have planned to buy a car on this occasion. In this article, we will tell you a few important things that you should consider to ease your financial burden while buying a new car.

1. Consider you buget

While it is everyone's right to aspire for bigger and better cars, it is always better to consider your budget and check your loan eligibility first.

If you are taking a loan to buy a car, check if the bank is providing flexible repayment tenure ranging from 12 months to 84 months so that you can make the best decision that suits your needs. It also offers up to 100% financing to save you the hassle of coming up with a down payment. Also, see that the bank is not taking too long to approve your loan request.

A mid-range car will normally cost you around Rs. 7 lakh to 10 lakh, but it is recommended you opt for a car that costs either more or less depending upon multiple factors like your income, personal preference, requirements, etc. Beware that once you have decided how much you are willing to spend, you do not increase your budget later. Next, decide how you are going to fund this car purchase. There are two options available to buy a new car - a car loan or to wait for some time to save enough money and then buy the car.

Remember that if you opt for the first option i..e a car loan, there is a downside. You will end up paying more than the actual cost of the car. This is mainly because of interest on the loan plus there are additional charges such as loan processing fees and GST. Additionally, you will have to bear the burden of EMI payments during the loan tenure.

2. Factor the car insurance premiums in the total cost

Insurance costs can have a drastic impact on the total price of the car, thus it is good that you consider it along with the car's price during a purchase. While sports cars mostly have more expensive insurance premiums compared to other cars, there are other cars that have a high premium amount due to separate reasons. For instance, the Honda Civic, Honda Accord, and Toyota Camry have a high resale value, which makes them vulnerable to theft. Therefore, they might have a higher insurance cost compared to the other cars in the same segment.

3. Avoid purchasing any add-on

Some car add-ons are valuable, but not all are trustworthy. Most salesmen earn commissions based on a percentage of the sales price, so they might try to rope you into purchasing add-ons to increase the cost of the car. Try to keep the additional costs to a minimum by avoiding add-ons such as heated seats, rustproofing, rear camera, VIN etching, and a dealership maintenance plan. Besides, can also buy a GPS unit at a much cheaper price online, rather than buying the expensive built-in system.

4. Petrol, diesel CNG or Electric?

Decide whether you are looking for a car that is powered by petrol, diesel, CNG or electricity. The type of fuel you choose will determine the operating cost of your car.

5. Avoid buying an extended warranty along with your car

The extended warranties that the dealers offer are often costly and provide minimum coverage. Be it a new or second-hand car, such warranties also do not usually cover mechanical failures. If you are buying a new car, ensure that it has a manufacturer's warranty, if not, you can save that money instead for potential repair and maintenance expenses.

Last but not least, do not make an impulsive decision to buy a car as it's a huge investment. Keep in mind your budget, and financial needs, and only after you perform extensive research on the market take a final call.