Tips for Buying a New Car

Is a newly launched car's astonishing features tempting you to buy a new car or upgrade your existing one? 

Or are you thinking of purchasing a new car for your growing family needs??

If yes, welcome to jungle ruled by dealers and car manufacturers. They are fully geared up to trick you in making a purchase which will benefit them most. Not convinced? Make a visit to a nearby car dealer and get astonished by their courtesy and numerous suggestions (over a machine made cup of coffee) as if they are your best friends. Soon enough you will know that all the discussions and showroom visits lead you only into a world of confusions!!

Believe me, you are not alone. Every car enthusiast has gone through same and all wish if there was a checklist they can use to decide what's best for them. No doubt, I too have stumbled here and there to get good advice.

Based on my research over years and after going through hundreds of car reviews and expert suggestions, I have came up with a list of suggestions that may help you in one go - 

1. Budget for car - Car is a liability and not a revenue generating asset (unless used as cab). It means you lose your hard earned money when you purchase a car. You should be considerate before investing your hard earned money in a car. Experts recommend that the budget for car should be between 50% - 120% of your annual salary. Lets say if one earns 8 lakh per annum, then the budget for car should be between 4 lakh to 10 lakh.
2. Used car vs New car - Used car market is slowly gaining pace and may soon compete with new car market. Used cars do save you some money over the new cars. 
1. One should only go for a used car deal if the car is not older than 4 years. If an older car is purchased, buyer may be compromising on the car condition, engine efficiency etc. 
2. One should prefer a used car from a known person or reliable seller to prevent falling into fraudulent traps. Google it and you will know how common are fraudulent used car deals.
3. Always check the history of the car for service, insurance claims, tire replacements, previous owners even if you are buying it from a reliable source. 
4. Prefer the brand and the model of used car with a proven track record. Both the brand and the model should have good market reputation. This will ensure your life is hassle free after making the purchase.
3. Decide your car variant wisely- Some customers just go for top model variant thinking it would be the best choice. But, oh dear, what glitters is not always gold! Just think how much are you going to use the so-called must have features offered in top variant over the lower variants. A very good example can be features like AI, ADAS, sunroof etc. in the latest car models. These features really thrill a potential buyer to be inclined towards top variant of car model. But just think a little bit more and ask these questions before making a decision - 
1. How often I am going to use this feature? 
2. How helpful this feature will be in improving my daily driving experience in different conditions like highway, city, rural, hills etc.?
4. Make safety rating your paramount concern- Don't go for a car with NCAP rating below 4. Even if you may be the most patient and careful car driver in the world, but the roads are full of idiots (especially Indian roads). You cant prevent others from bashing into your cars but you can ensure that if it occurs, chances of your family's survival are higher. Please, don't ever compromise on safety rating.
5. Petrol vs Diesel variant- No doubt diesel engines are more powerful and they are fuel efficient too. But they are noisy and expensive too. If you have a good run daily, go for the diesel engine. It will save you lots of money. But if you are like me who gets to drive car once in a week or so, think before you pay extra for a diesel variant of car.
6. Newly launched car vs existing car- No doubt a newly launched car will most likely have more features than an a car in market for 4-5 years. But reliability vise, an existing car model has a proven track record with good supply of repair technicians and spare parts in the market. If you are interested in a newly launched car, experts recommend to wait minimum 6-12 months after the car launch. This duration gives car manufacturers chance to fix the problems in the initial model launched in the market. However, if you are too thrilled and adventure seeking, go ahead and book the newly launched car before it proves its worth in the market.
7. Always take a test drive of car before you make final decision-  There is lot of knowledge available about cars nowadays in form of online reviews, blogs/vlogs, customer reviews or feedbacks from known. But this shouldn't be all you need to decide your car. Like food, car enthusiasts may have different preferences. Some may prefer a good throttle while other may be interested in better economy. So, test drive your possible options in cars and get the real feel of what is going to be your daily driving experience.
8. Mode of payment : Loan vs Cash- So you have decided your car model and now it comes to the payment of money. Should you pay in cash or should you loan the amount? 
1. If you don't have full cash ready, car loan is inevitable. 
2. If you have cash ready, you may want to pay in full and live tension free. There is nothing wrong, but money makers suggest that you can still go for loan option and invest your cash in a mutual fund scheme. Usually, the market grows more than interest on loan. In simple words, if your loan interest is 9% and if you realize that mutual funds may give you higher returns (or you can get higher returns by investing the money else where), then loan is not a bad option at all. 
3. Before applying for loan, make sure to cross check the file charges, loan interests, monthly EMI with different loan providers. Experts suggest that you may save a good amount of money if you research your car loan properly.
9. Extended warranty- Extended warranty for the car appears like a win-win situation for the customers on some extra cost. It does bring peace to your mind for a few more years. But if you choose a reliable car model with a proven track record and your car run is not that much, then you may skip the extended warranty. Extended warranties are made for those who drive car so much that may subject it to engine failures or breakdown in first 5 years. If you are not one of them, better save your money.
10. Minimizing the cost of car purchase- Cars purchase is an expensive process. There is not much that can be saved on car pricing and RTO charges. But a little research can definitely save you a few thousands in insurance costs and accessories. Experts recommend that insurance offered by car dealers are usually overpriced and the the add-on facilities provided are seldom used. Better choose insurance provider of your own choice based on your experience. If dealers enforce accessories, insurance or any additional charges like handling charges, oppose it and take it to the car manufacturers and authorities.

So guys, how do you feel about this article. Do you feel there is more that can be added to this? Please share you views in comments and like/share the post :)