The car market in India is red-hot right now. Every brand worth their manufacturing chops is putting their best products forward in a bid to garner the most of the buyer’s financial pie. Add to it a relaxed borrowing climate, where lenders are ensuring that they make the financing process as easy & seamless as possible, and you’ve got a situation where getting your dream car is easily within reach. Here’s a few tips on how to make smart financial decisions when buying a car:
- The first thing to keep in mind when buying a new car is to weigh carefully, if you can afford your purchase. By this, we mean, not just in terms of the actual purchase cost, but in the overall scheme of things. You see, bringing your dream car home is relatively easy. Once it is yours though, you’re going to have to spend on maintaining it, ensuring that it stays in the best of condition for as long as you have it. So choose smartly.
- The easy availability of car finance these days have made a lot of buyers complacent. Some fall for the old, *low interest rate game & end up paying dearly for handling & other upfront charges. Others go in for a longer loan duration, just to get their hands on the next segment car, only to realize later that they miscalculated their financial capabilities.
- Buyers who make smart car financial decisions always weigh their options. They leverage existing relationships with lenders, shop around for the best deal, not just in terms of the lowest EMI, but in terms of the lowest outgoing overall. They look closely at the fine-print, poring over every single detail, before committing towards the deal.
- A critical aspect that most new car buyers tend to overlook is to check on the discounts available.. Often, these depend on specific variants or even across dealers. It is therefore important to cross-shop across all available options in the city, before locking down on a deal.
- Another secret to making smart car financial decisions is arming oneself on the finer aspects of the buying experience. For example, most buyers remain oblivious to the fact that they can easily save up-to 40% on their new car insurance buy shopping direct, instead of going through a dealer.
- Accessory sales are another money spinner for dealers & buyers are often misled into opting for them when buying a new car. Buying these through a trusted after-market vendor can easily save anywhere between 20-80% off the original cost.
Lastly, most 3-5 year old cars tend to have a lot of life left in them. Often, these can be restored at a fraction of the cost of a new car & can be enjoyed for a few years more. So holding on to the older one can be an option. In the end, it all comes down to individual needs & one should always decide accordingly.
