Tips for Buying a New Car

Buying a new car may appear to be a simple thing. Select the one that strikes a chord with looks, offers a decent mileage, and fits your budget. Although followed by most, the criteria may not be the correct one. It is better to have a comprehensive examination of your requirements vis-à-vis the car before finalizing the one.

Tips for buying a new car, we explained here, would be useful for you. The subject points can be used to guide your friends or relatives who are planning to buy a new vehicle.

The Budget You Have

Don’t go for a car that is beyond your budgetary calculations. It will create unwarranted chaos in your life, with the EMIs going overboard. You may dream of a pricey sedan that offers advanced features. It is ideal to plan the purchase in that case. So that you will have some amount in hand for a down payment and the loan amount will be less. The higher the loan the higher the amount you pay as interest. Subsequently, you may have to limit other familial requirements just to pay the EMI.

Also read: Top 5 Maruti Suzuki Cars under 5 Lakh

Obtaining a Car Loan

Unfortunately, car loan interest rates in India are on the higher side. Normally it is 12% and up. As is the case, you will be paying an exorbitant amount as interest. You can use other loan options like a gold loan, to meet the financial requirements. And keep the car loan amount as low as possible. Gold loans offer flexible repayment options. The lender can choose the type of repayment he or she wants to make. The loan can be repaid in lump sum as well. On the other hand, early repayment of other types of loans can invite a prepayment penalty. We consider it better to get a loan from nationalized banks, rather than private banks. The private banks may charge a fine if you pay the loan before the scheduled period. Moreover, there might be hidden charges that would not be informed to you during the processing stage.

On-road Price of the Car

The on-road price of the car will include road tax, insurance, and other levies. Calculate the total price by taking the ex-showroom price as the yardstick. The all-inclusive price will differ depending on the state since each state has different tax regimes. Having a proper price calculation would be helpful in arranging additional money if required. In addition to helping you avoid money shortage and last-minute hurry-burry to get the funds.

Also Read: Factors to Consider While Buying a New Car in India

Type and Segment of Car

The type, segment, and style of the car might depend on the age of the person buying. A family man would normally go for a comfortable, maintenance-friendly, car that offers good mileage. On the other hand, a youngster, full of energy, would want a powerful vehicle that has off-roading capabilities. He or she would look for more power, wherein fuel efficiency would take a backseat. Big families may want 7-seater MUVs that are within a specific price range. These all should be determined prior to commencing the search for the car model.

Test-drive the Car

Test-driving the car is necessary for two things. Firstly to check the on-road performance. Secondly, to ascertain whether the vehicle suits your taste or not. You must handpick your choice of models and test-drive each one thoroughly before reaching a decision. Don’t feel obliged to buy a particular model after test-driving. It would be the customer’s choice to choose the car he or she likes. Don’t have any dilemma when you ask for a test drive of the car. Schedule it as convenient to you.

How to Register Your New Car?

Most of the dealers complete the registration formalities before handing over the car to the buyer. The customer doesn’t have to go to RTO for this purpose. The experienced team at the dealership would process everything on the buyer’s behalf. You can hand over the requisite documents and relax, while the executives undertake the registration formalities.

The documents required for registration are:

• Identity proof of the buyer
• Address proof of the buyer
• Latest passport size photographs
• Certificate of Inspection of Vehicle (Form 20)
• Sale Certificate from the Dealer (Form 21)
• Certificate of Compliance of Pollution Standards (Form 22)
• Application for Making Entry of Purchase or Hire (Form 34)

What All Documents One Must Possess While Driving a Car?

The documents related to the vehicle and the driving license are to be carried whenever you are driving the car. The RTO officials can check the documents for correctness whenever they want. Failing to provide the documents can invite a fine.

• Original License
• Attested copies or originals of
  • Car Insurance
  • Pollution Under Control Certificate (PUC)
  • Registration Documents

Maintenance of the New Car

New cars will have servicing schedules at frequent intervals. Therefore, the maintenance of a new car will not be an issue. Although you can approach any of the dealerships, of the particular brand, for the periodic servicing, it is better to hand it over to the same dealer from where you bought the car.