Buying your first car is a big step. You need to do all the due diligence to make a flawless decision. Follow these tips.
Buying your first car can be an overwhelming experience. Especially in India, where a lot of sentiments are involved behind the purchase of the first car. However, you can make the first car buying experience less cumbersome with a little knowledge and planning. From selecting the right trim to getting the best deal; always follow these tips before booking your first car.
1. Budget and financing
Always zero-in on a budget to easily narrow down the available car options. It will also help you identify a car that offers a good value for your money. Ideally, you should buy your first car in full cash. However, it is not possible for everyone and you might need to finance your car. If you are planning to take a auto loan, factor in the interest cost and loan processing charges into the final cost of the vehicle.
To make a feasible budget, add up your fixed monthly expenses including utility bills, groceries, health insurance, and more. After calculating the budget, you can decide how much you can cut down on expenses for the car payment.
2. Identify transportation needs
Evaluate your daily commuting needs carefully like daily kilometers and how often you need to travel. For instance, if you plan to travel to office within the city then hatchback is the best option. However, if you plan to do long road trips or off roading then go for a SUV. For people who like to be chauffeur driven at the back, sedan offers the best bang for bucks.
Go online to research and compare car prices against their features within your budget. Look at safety features, interiors comforts, mileage, and service costs to narrow down the best option.
4. Financing and Purchasing Options
Before taking an auto loan, bargain for interest rate and processing charges. Also, find out pre-payment charges. It would come in handy, if you want to pre-close your car loan in the future. Get quotes from top lenders to identify the best deal.
If you have a good credit score, you can secure auto loan a cheaper interest rate. Avoid looking for loan if your credit score is not in the green zone.
5. Buy used car
Going for a used car is a better deal if you are on a budget. Used car dealers offer good prices on a five to three-year-old models. These cars are in good in condition and offer all the safety features that you want. You can easily get a used car at 40% to 60% cost of the new car.
7. Take a test drive
Take a test drive to check out the feel and performance of the car. Take multiple test drives of different car models to compare them thoroughly before making the final purchase.
8. Negotiate the Price
Saving a few extra bucks is never bad. Car buyers all over the world bargain hard with dealers to cut down the final price. Negotiate the price and try to get accessories like doormat, seat cover, speakers, and more free of cost. Read all the terms and conditions of warranty and finance agreements carefully.
9. Get the Car Inspected
If you are buying a used car, it is a good idea to get the car inspected from a trusted mechanic. An end-to-end inspection of the car before the purchase can help you identify any major faults with the engine and electronics of the car. You can buy pre-purchase inspection service to get your car checked thoroughly.
Hope, these tips will make your first car buying process a hassle-free affair.