How to decide on buying a new car?

Are you wondering how to decide on buying a new car? The decision requires loads of homework, patience and perseverance on your part. You should always venture to purchase a new car after having done your homework. After all, a car represents a vital investment for you and your family. You do not want to be stuck with a wrong choice for quite a few years especially if you are going out on a limb and paying high EMIs to own the same. The first thing to remember is that you should have the financials completely worked out. You should know how much down payment you can ideally fork out for the new car without putting your bank account into complete jeopardy. Ideally, a minimum of 10% is sought by banks and dealerships alike while there are often special offers like zero down payment though this is not advisable since this only inflates interest rates and loan amounts in the future.

Try to pay as much as possible upfront, preferably up to 20-25%. Once this is achievable, you should then work out the loan amount you need, your eligibility and other factors. In case you have no other loans and possess your own accommodation, your car loan EMI should not exceed a maximum of 15-25% of your income in an ideal scenario. You should also budget for costs like yearly insurance, yearly service and maintenance, fuel costs every month (calculate the average distance you will need to travel and find out about the mileage offered by the car model you want to buy) and other expenses including chauffeurs and the like. Once all these expenses are budgeted along with the costs related to registration, one-time insurance and other taxes, you’re all set to buy your dream car.

The entire process should have you in a cool and calm frame of mind even though buying a car is an emotional decision. Never be in a hurry to buy your dream car even if you cannot control your excitement! You should also do your homework about the future depreciation in the value of your car and the total cost of ownership. You should also find out about probable service costs and approximate insurance premiums that you have to pay in the future. You should also decide on the kind of car you need. If it is entirely a utility purchase, you should look to meet basic needs of yourself and your family. If it is a small family, you can opt for a hatchback or even a sedan depending upon your budget and preferences. If you have a large family, an MUV is a good bet and if you love bigger and rugged cars, you can opt for an SUV if you are okay with the size, higher prices and other hurdles to owning these beasts in congested cities.

There is another decision that you should make as well. You should choose between a diesel or a petrol car. New age diesel cars are more fuel efficient, high performing and clean. Petrol cars are okay if you have lower commutes and are looking primarily for driving pleasure. However, diesel is a must if you drive long distances every day and are looking for better mileage and more power. You should never neglect safety options when choosing your car. Always look for features like ABS with EBD, traction control systems and airbags. If you are buying a variant that does not come with standard safety features like these, paying a little more for optional safety features is highly recommended. These are well worth it since safety comes first on our treacherous Indian roads.

You should also keep an eye out for car models that are in their new generation. Find out whether your chosen car model is about to be phased out or discontinued. Find out whether the new generation model or face lift is about to be introduced in a few months or a year. The best option is to wait since a new generation vehicle will be a better investment and will hold considerably better resale value. If you end up buying a car model that is about to be phased out, you will face huge problems relating to finding components and other parts. Resale value will also be a big problem. Most car models get an upgrade after every 3-4 years.

Do not rely blindly on advertisements for information on vehicles. You should try and talk to as many car owners as possible along with reading up on reviews about the car you want to buy. Do not buy your vehicle from dealerships that are not authorized even if they offer amazingly low prices and other discounts. You should always buy from official dealerships for the sheer security and comfort involved in the process. You will always have access to proper service, maintenance, car care and customer service if you buy from a proper dealership. This is one mistake that most people make with very problematic implications. You should look for dry spells while buying cars instead of the festive season, Christmas and New Year. These are times when dealerships sell models in droves. If you buy your vehicle at a time when sales are not too high, you stand the chance to get better discounts and customized offers as well.

When test driving the car, focus on how you feel with regard to maneuverability and overall performance. You should not just drive a single kilometer; this will never give you a definitive idea. You should always make sure that a car connoisseur or expert driver is with you when you are taking the test drive in case you are not driving yourself. Always make sure that the promises and tasks of the dealership are jotted down in the official letterhead. This is just to ensure complete peace of mind and greater accountability from the dealership. These tips will make your car buying decision a smoother and more satisfying one.