It is indeed a dream of almost every individual to buy his/her own car. But, in urgency, people often fall into the trap without the proper analysation of things. It would turn into a headache later, so this post is purely dedicated to all those individuals to craft the things out properly as a heads-up.
Below are the sequential ways in which an individual plan to buy a new car:
- . Planning the range:The first thing an individual should plan is to decide the amount that he/she can invest in it. Buying a car out of the bracket, would not make any sense. There should be a proper net take home in your salary that should not affect your monthy expenses, rent and other normal things. So, plan accordingly.
- New vs used car:Once the budget is fixed, plan on deciding whether you want to buy a brand new car or fine with the used car as well. Sit with the family internally and decide what exactly are you looking for, and it should always pass the first point. It should be affordable and manageable, it should cost you more than 15-20 % of your monthly income at all.
- Choosing the car: Now comes the important step. Choose the car in your budget, which suites your taste, lifestyle and comfort. Family might ask for a roof-top, petrol vs diesel type and what not? So, list out the specifications and narrow down to one or two cars.
- Resale value of the car: It is indeed a true fact that people often get bored with things that they love too. Buying a car is just like bathing in a cold water for the first time. Once you are done, you get used to it. So, you should plan on buying a car which has a better resaleable value if you plan on replacing your car. Cars with powerful engine, chasis, brandname, service centres availiblility will have higher resalable value. So, considering this point is equally important
- Thorough Liability research: Many banks and NBFCs finance the loan for buying a car. But the interest offered may be different. Don’t fall for the trap of higher interest cause they are funding you to buy one. Check the interest rate, the repayment capacity after your take home and decide.
- Checking at different dealers: Compare the vehicle price with the different dealers in and around. Dealers may always keep high amount. withhout checking the amount from different dealers, you may end up in soup. You will not be able to help or save yourself back later.
- Test- Driving: Going a test drive is a very important task. Though the car may have all the features that you and your family needs, it should also feel smooth and quiet when you drive. DO not buy any cars without going on a test drive.
- Negotiation: Do not hesitate to negotiate the amount of car. Many dealers do not inform you totally, but they will have the buffer or the bracket to bring the price down. Unless the customer is not willing to buy, they would never negotiate the price, so it is always better to go ahead with the negotiation without any second thoughts.
- Car insurance: premiums in the total cost Insurance costs have a huge impact on the total price of the car, therefore it is important that you consider it along with the car’s price during a purchase. While sports cars usually have more expensive insurance premiums than other cars, there are a number of cars which have a high premium amount due to separate reasons. For example, Honda Civic, Toyota Camry, and Honda Accord have a high resale value and, hence, are more prone to theft. Therefore, they might have a higher insurance cost compared to the other cars in the same segment.
- Beware of Cross selling trap: Avoid purchasing any add-on Since salesmen earn commissions based on a percentage of the sales price, they might try to rope you into purchasing add-ons to increase the cost of the car. Try to keep the additional costs to a minimum by avoiding add-ons such as heated seats, rust proofing, rear camera, VIN etching, and dealership maintenance plan. You can also buy a GPS unit at a much cheaper price online, instead of buying the expensive built-in system.
These are the checkpoints that an individual must consider when they are planning to buy a car of their own. It does not matter if its a second hand or a new car, please consider the points. Insurance and test drive is must, do not ignore these as a handful of people ignore these in the beginning and regret later for not considering it.