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Guide to Buying a Car: Purchasing Your First Car? Here’s Some Tips

Buying a car is a big decision in a person’s life, and buying their first car is even bigger. There are many steps involved in purchasing a car that a buyer needs to be aware of and many choices that can be made to get the best deal possible on the new car. We have compiled a list of tips that everyone looking to buy a car should know. This guide to buying a car will help you select the best option for your needs and save money.  

Car Selection Guide: Tips for Buying a New Car

  • Decide the Make and Model

The first decision while planning to buy a car is to decide the type of car you need to buy. This will mainly depend on the purpose that the car is going to be used for. There are many different types of cars that all serve different functions. For instance, SUVs are robust cars meant for off-roading, whereas MPVs (Multi-Purpose Vehicles) are large cars that can seat many people. The decision to buy the type of car will depend on your intended use.

  • Finalise Your Budget and Financing Options

One of the most important aspects of buying a car is the budget. You need to set a fixed budget that you can afford to pay. Many people buying a car opt for car loans for the choice of small payments in instalments over a period of time. When considering a car loan, you must choose an affordable one. Availability of a higher amount loan does not mean you should choose to go for it. It is a good idea to take a lower amount loan with a lower repayment period, which will save you a lot of money.

  • Research the car

Nowadays, the internet has made it very easy to research and find information on any subject. There are tons of websites that offer you all the information you need on the car you are interested in. Read about customer reviews, car specifications, and long-term maintenance costs to get a good idea of the car you are looking to buy.

  • Visit Dealerships

Once you have decided on the car you want to buy, you can visit various car dealerships in your city and compare the costs and benefits each provides. You can even get car dealerships to match the discount prices for the best deal possible. Car dealerships often include free accessories, so make sure you get those as well.

  • Consider Buying a Second-Hand Car

Buying a brand new car can be very expensive, especially if you are looking to purchase a luxury car. However, the second-hand car market in India has grown rapidly in the past few years. You can get significantly lower prices when buying a second-hand car that has only been used for a few months or had little usage.

  • Trade Your Old Car to Save Costs

If you have an old car and you are looking to upgrade, you can trade in your old car at the car dealership. You will get a sale quote for your old car from any reputed second-hand car agency. The new price can then be deducted from the final amount.

How to Maximise Benefits From a Car Dealer?

  • Free Car Accessories: Many car dealerships offer free car accessories when you purchase a new car from them. You can ask the dealer to include accessories such as floor mats and seat covers, alloy wheels, a car toolkit, among other things. Most car dealers will be happy to supply these for free.

  • Compare Prices: As mentioned above, you can check the car prices at various dealerships before you make the decision to buy a car. Once you have the quotes from various car dealerships, compare them, and even ask to reduce the price or match other offers. This will ensure that you get the best possible price.

  • Check for Financing Options: Many car dealerships offer their own car loans or car financing options. While it is generally a good idea to get a car loan from a reputed bank or lending agency, you may also get a good financing deal with lower interest at the dealership. However, it is important to thoroughly read the terms and conditions before you sign any contracts.

  • Look for Free Maintenance and Servicing: Car maintenance can be expensive. Most car dealerships offer limited free servicing and maintenance of typically up to a year. Make sure you avail these services as they could save you a lot of expenses.

  • Get Warranties for Parts: Car dealerships also offer warranties on various car parts when you buy a new car from them. Ask your dealer about the warranties and get them for as many car parts as you can.

  • Negotiate the Final Price: Apart from comparing prices at different dealerships, you can also negotiate with your car dealer to reduce the price of the new car you want to buy. With effective negotiation, you may be able to save some money.

Top-Selling New Cars in India

Here is a list of the top-selling cars in India in 2021. You may choose to buy one of the cars from the list or a different option entirely. As you can see below, Maruti Suzuki WagonR, Swift, and Baleno lead the charts so far in 2021.

  1. Maruti Suzuki WagonR

  2. Maruti Suzuki Swift

  3. Maruti Suzuki Baleno

  4. Maruti Suzuki Vitara Brezza

  5. Maruti Suzuki Dzire

  6. Maruti Suzuki Alto

  7. Hyundai Creta

  8. Maruti Suzuki Ertiga

  9. Hyundai Grand i10

Conclusion

Besides buying a car, it is also important to have a good car insurance policy. A comprehensive car insurance plan that covers all bases will help you recover financial costs in the event of an unexpected mishap. The Motor Vehicles Act, 1988, makes it mandatory for all vehicles to be covered under an appropriate insurance policy. You can take a look at all the available Car Insurance options at Finserv MARKETS online. Get a quote, today!

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FAQs on Car Buying Tips

  • ✔️How much should I put as a down payment (DP) on the car?

    You can put anywhere from 5% to 20% of the sale price as a down payment. However, different car dealerships or car loan providers may have different rules for down payment.  

  • ✔️Will car dealerships lower prices for cash?

    Paying cash for your car purchase will ensure that you do not have to pay any interest on a car loan or worry about monthly EMI payments. However, paying in cash does not mean you may get a discount on the final price of the car.  

  • ✔️How do you negotiate with a car dealer?

    You can negotiate with the car dealer to bring down prices by comparing other car dealers’ prices and asking them to match offers and provide freebies.

  • ✔️What is the best time to buy a car?

    The best time to buy a car is at the end of the year, when moat car dealerships look to fulfil their yearly quota. You can also get discounts or attractive offers during this time.  

  • ✔️What is a good credit score for a car loan?

    A CIBIL score of 750 or higher is considered to be an excellent credit score to apply for a loan or credit. A score over 750 will allow you to negotiate the terms of the loan with the lender and demand a better offering.

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