Owning a car is really fascinating. Nothing is more heavenly than driving through the captivating road and highways with ultimate scenic beauty, and cool breeze kissing your face. WOW!! Snap out of your dream.
Before buying a car and mapping out route to your dream drive, get to know some valuable tips to buy a car. First time or not, buying a car is a terrifying job. You need to decide upon so many things and compare all the available options before landing onto one.
Automobile market has grown extensively in the past decade. Buyers now have wide category to choose from both new and used cars. From private sellers to car dealers to online classifieds, everyone offers diversified options. Most important things to keep in mind before buying car are clearly knowing your requirements, and being able to walk away.
Read more to find out other important car buying tips that can help making an informed decision.
Here are some tips and advice to consider before buying a car:
Car is an important asset, so doing some homework is a good idea. Making some critical decisions will help figuring out what you expect from your car
- Type of car – Depending on your needs and preferences, choose between Sedan,Hatchback and SUV. Also consider appearance, comfort, reliability, cost, resale value, engine size, and safety.
- Fuel type – The most common fuel types are Petrol, Diesel, CNG and LPG. Choose the type of fuel that gives maximum mileage according to your usage. Please note that not all cars are available in all fuel types.
- Engine capacity – Higher engine capacity will give higher power but also result in lower fuel efficiency, and vice-versa.
NEW VS USED CARS
Buying a used car is no more a stigma in current times. Market offers ample of options for buyers to choose from used and new cars. Whether buying a new car or a used car, both have their own advantages and disadvantages. So, it’s difficult to comment and provide a precise advice as there’s no right choice. It completely depends on individual’s choice and preferences.
Here are a few points to consider before coming onto one decision:
- More Choices: Buyer gets more choices to choose from in case of new cars rather than being limited to what is available in case of used cars.
- Features: New latest cars are loaded with exciting new features and specs. However, used cars offer limited features and specs.
- Cost: Cost is very important deciding factor. The similar model of a new and a used car can differ drastically in pricing. New car is much more expensive than a used version with same features.
- Rate of Depreciation: Depreciation rate is much faster in new cars verses old cars. Value of new car is depreciated by almost 11% as soon as you get on the road. If you buy a used car, its rate of depreciation is lesser because there’s no initial depreciation.
- Resale Value: Resale value of a used car is higher than the new car, as there’s less difference between buying price and selling price.
- Financing: If you are planning to finance the car, then financing rate could be better in new verse the used one.
- Know What You Buy: When you purchase a new car you know exactly what are you buying and what you will get. There’s no uncertainty about the features and you need not dig out the history of the vehicle. However, when you shop a used car you must assure all the documents are complete and original, learn about accidental history (if any), find papers of insurance or finance, check service history or any major damage, and more information.
- Insurance: Buying insurance for a brand new convertible is more expensive. Companies offer better insurance rates for a used vehicle.
Top 5 Pitfalls to Avoid
If you have decided to purchase a used car, then go through these major pitfalls, which can ruin your car buying experience. A lot of risks and question marks are welcomed when you buy a used car. Below are 5 important pitfalls to avoid:
- Clocking: Clocking is the reduction in the mileage of a vehicle to increase its potential selling price. It is the most common way of selling a vehicle at a price higher than the fair price.
- Improper Vehicle Inspection: Take help from a trustworthy mechanic and get the vehicle inspected. This will minimize chances of any unpleasant surprises after the purchase. Don't inspect the vehicle in the rain, in poor light or at night. You can even contact with vehicle inspection service provider to get a verified document regarding the condition of the car you have thought to purchase.
- Misleading Disclosures by the Seller: Seller may omit certain facts that are material and can change buyer’s view or buying decision about the vehicle, such as accident, usage of vehicle etc.
- Vehicle Cloning: Sometimes one vehicle is given the identity of another by replacing the number plates with those from an almost identical vehicle - same make, model and colour.
- 'Cut - and - Shut': When the remains of two or more vehicles, which have usually been accident–damaged and written off by insurers, are welded together, then illegally given the identity of one of the wrecks.
Things to Keep in Mind before Buying a New Car
The luxury of owning a new car is second to none for most of us! The latest innovation in automobile technology is the fundamental reason for choosing new over used.
Buying a new car is a big decision, which can’t be taken overnight. Do proper research before you invest into your next new vehicle to make it a wise financial decision. At Droom we promote buying both new or used car that fits in your requirements. If you are more inclined towards buying a new, following are a few things to keep in mind before buying a new car:
- Understand Your Purpose and Requirements: Buying a car randomly can be a bad decision. Before you make your purchase understand your requirements and purpose of buying. Decide about the brand/make, the body type, color, what all features you want, the trim, fuel type, engine, lifestyle requirements and most importantly your budget. With these decided, it be easier to narrow down the cars that fit in your requirements.
- Fix A Budget: After understanding your purpose of buying a car, fix a budget. Allocate the finances you would want to invest in buying a car.
- Fuel Efficiency: Get information about the average mileage of the car(s) you have shortlisted. The more the average mileage the better will be the fuel efficiency. Go for a car with better fuel efficiency as this will save you some money in long run.
- Resale Value/Depreciation: Make sure to consider the resale value or depreciation of the car you are planning to buy. Though this is very market dependent thing, and also depends on the then condition of the car, but brand value too determines the ability of a vehicle to retain its value. Check fair market price of your used car after 3 years (3 years used as an example here) with Orange Book Value.
- Check Affordability: Before you invest your huge portion of money in buying a new car, make sure you know what is the appropriate affordable range and budget. Use Affordability Calculator at droom.in to calculate the price range of the vehicle and EMI affordable according to your current income and expenditure. Affordability Calculator takes input of your current income and expenditure to give output of affordable price range and EMI.
- Know Total Cost of Ownership: Other than the price of the car, you must know the total cost of ownership of the vehicle you want to buy. You can use Total Cost of Ownership (TCO) tool available at droom.in. TCO allows calculating and comparing cost of ownership of up to three cars and get cost split for 5 years in terms of insurance, service, fuel, tire change and more.
- Test Drive Yourself: Test drive the car and do this yourself. Experience and judge the feel of driving the car, and don’t the just drive in your block, try driving on different roads. Test drive all the options you have narrowed before finalizing the one.
- Pre-Approved Loan: If you are planning to go for a loan option, then make sure to get the quotations from different banks or financial organizations. Carefully understand the terms and conditions, then pick the best one. Droom offers new cars with 70% pre-approved loans.
- Calculate EMI: Know what amount of money you should shell out each month on EMI. Use EMI Calculator available at droom.in to calculate your monthly EMI, sum to be repaid, total interest to be paid, and interest & principal components of each EMI for the required loan amount.
- Rating & Reviews: All the information provided by the manufacture is not true, as it is majorly used for endorsing and advertising the vehicle. Check the genuine rating and reviews available online, which are given by authentic users and experts.
- Authorized Dealer Only: Don’t fall in the trap of cheesy discounts offered by some unauthorized dealer. Make sure you buy from an authorized dealer only. Check 2-3 dealers in your locality, as they might offer different perks and discounts. Consider buying from Droom to get best price from an authorized dealer.
Buying a car is an important investment and decision. Ensure that you are fully equipped with all the details before taking the final call. Buy a new car based on how much you can afford and EMI payment you think you can pay per month, also consider the fuel efficiency, technical specifications, and other important factors. Though sometimes it makes more sense to invest in used cars, but then it’s all about personal choices. Droom offers wide range of options of both used and new cars that’s sure to fit your budget and requirements. Buy now!
EX-SHOWROOM PRICE VS ON-ROAD PRICE
A buyer generally gets confused with the various terminologies with respect to the price of the new vehicle. These terms are applicable to the new cars only. There are two types of prices a user must know that are explained as follows:
This is the price at which a dealer sells the new car to the retail customer. This price includes cost of transportation, applicable Excise Tax, dealer margin and more. Ex-showroom price may differ from state to state but it remains same for a particular state.
This is the actual price payable by the retail customer to the authorized dealer. It is even called as Invoice Value of the vehicle. This price further includes some charges like accessories costs, State Registration Charges, Insurance charges, Delivery charges (Logistic Charges), Life Time Road Tax, and any additional warranty coverage. On-Road price is the final price a buyer pays, and it may vary from dealer to dealer within the same state.
- ex-showroom price
- Transportation cost
- excise tax
- dealer Margin
- octroi charges
- on-road price
- Registration charges
- accessories costs
- life time road tax
- additional warranty coverage
- insurance charges
- delivery charges
If you are buying a new car, then you can go online and check the ex-showroom price for the particular car and model. This will help you negotiate and get some discount from the dealer.
However, when buying a used car all these charges are not levied. A user pays the one final price on which both (buyer and seller) agrees.
TYPES OF CARS
Car is a big time utilitarian and a luxurious medium of transportation. Customers have multiple options when they start searching for a car. Various cars are different in the body style and capacity. Below find out different types of car:
Hatchbacks are the basic car type designed with a passenger cabin and a cargo section. These cars usually have two rows of seats, and commonly rear seat is foldable (fold-down), making substantial space for cargo. The integrated cargo section can be accessed from the backside of the vehicle by a single, a large flip-up window or top-hinged tailgate. Hatchbacks often are three-door with two entry doors, or five-door with four entry doors. Examples: tHyundai i10, Maruti Swift, Volkswagon Polo, and others.
MUV is an abbreviation for Multi-Utility Vehicle. The shape of MUV is similar to the van, which is designed specifically for personal use. This is taller than hatchback or sedan, and designed to offer maximum interior space to occupy more occupants. MUVs are popular for long trips with friends and family. Examples: Toyota Innova, Maruti Ertiga and more.
SUV, commonly known as Sport Utility Vehicle, is a passenger car with towing and hauling capacity of a pickup truck. SUV has the passenger carrying space equivalent to a minivan along with a station wagon providing on or off-road capabilities. These utility vehicles come with a combined compartment for passengers and cargo. SUVs generally have three rows of seats with a spacious cargo section behind the last row of seats. Examples: Mahindra XUV, Tata Safari, Honda CRV and more.
Convertible cars come with a flexibly operating roof called as retractable hardtop, whether it is made of strong or rigid material as steel. These can be easily converted from coupe to convertible and vice-versa at press of a button. The collapsible section of roof is crafted of flexible canvas or vinyl or an articulated folding frame.
Coupes are smaller cars, also called as sporty version of sedans. These cars have just two doors instead of four. Coupes generally offer passenger space for two in front and two in rear.
Read to find out answers for some of the most commonly asked questions in process of buying car.
Mileage, age and appearance of the vehicle should be consistent with each other. Check for any sign like worn screws that the instruments might have been tampered with (Digital odometers can be tampered with electronically so clues like this won't exist). Check recorded mileage on service records
You need to look for hidden signs to unearth an accidental damage
- Check for any unusual looking welding.
- Check if the paint finish even across the vehicle.
- Check if the vehicle's colour has been changed.
The minimum checks you can perform while test riding are:
- Check if all warning lights operate normally.
- Check if the brakes are effective or if it takes a long time or a lot of effort to stop.
- Check for any unusual noises when you apply brakes.
- Check for engine noise and vibration.
The must-check documents list includes the following:
- Registration Certificate
- Insurance Certificate
- Owner’s Proof
- Pollution Under Control Certificate
The minimum required safety checks are
- Check for tread on tyres
- Check condition of spare wheel
- Check seatbelts operability
- Check lights, jack and other tools