We all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buying a car is a big investment but it can be rewarding too if proper homework is done.
Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundwork and must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on the decision
Don’t buy a car with a preconceived notion: Don’t buy car in a huff. Before buying a car gather all the relevant information such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads of reliable information available you should first go for a virtual car shopping. This will help you in taking an informed buying decision.
Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trap and go for buying a car with an open mind after considering all the pros and cons of the car.
Decide your priorities: Different cars come with different plus points. Some have great pick up, some give high mileage, some have additional safety features, some are economical to maintain and so on. Before buying any car you should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage. Also keep other factors in your mind such as the size of your family and the seating capacity of the car.
Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximum limit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what is the maximum EMI that you can afford on your present income. Buying a car also involves hidden costs like insurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income while deciding on the amount of EMI.
Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As compared to petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the need for gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations and noise under acceleration.
On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines. Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine. Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.
So give a considered thought to all these factors before deciding to buy a petrol or diesel car.
Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options before you. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money to buy a new car. Both the options have their pros and cons.
You may receive a higher price if you go for private sale but it would require additional work as you will have to do the paperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all the requisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer would also keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car is in rough condition you should opt for trade-in.
Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop around before entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quite possible that some dealers may have a special offer on the model you desire.
If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that only then go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, so that they can factor it into the deal, hence try to keep it out of the equation as long as you can.
Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you are comfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not too heavy et al.
Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal forms should be filled in completely and submitted to the right authorities. You have to register the car with the Regional Transport Office. Following documents are required to be submitted to the RTO:
- Application for new car registration or Form 20
- Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address.
- Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt
- Pollution Under Control Certificate from the manufacturer or Form No 22
- Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34
- Your PAN number
- Imprint of your car’s Chassis Number