Buyer Guide - Car

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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


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.

New vs Used
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


If you are planning to finance the car, then financing rate could be better in new verse the used one.


New latest cars are loaded with exciting new features and specs. However, used cars offer limited features and specs.

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.

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.


Buying insurance for a brand new convertible is more expensive. Companies offer better insurance rates for a used vehicle.

Top 5 Pitfalls To Avoid

1. 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.

2. Improper Vehicle Inspection

Take help from a trustworthy, experienced 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 vehicle inspection service provider to get a verified document regarding the condition of the car you have thought to purchase.

3. 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.

4. 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

5. '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

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:

Ex-Showroom Price: 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.

On-Road Price: 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.

Cheat Sheet

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: Hyundai i10, Maruti Swift, Volkswagon Polo, and others.


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.


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.


Crossovers are the utility vehicle built with the features combining that of a SUV or a passenger car like hatchback. With a unibody structure that of a hatchback or a typical passenger car, crossovers offer perfect blend of hatchback design and SUV design attributes like independent rear suspension, fuel economy, car-like handling, high H-point seating, tall interior packaging, high ground-clearance, or all-wheel-drive capability.

Important FAQs

Read to find out answers for some of the most commonly asked questions in process of buying car.

A. 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

A. You need to look for hidden signs to unearth an accidental damage

  • Check for any unusual looking welding under the bonnet or in the boot.
  • Check if the paint finish even across the car
  • Check if the car's colour has been changed (Look under carpets and in other hidden areas in particular.)

A. The minimum checks you can perform while test driving 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 efforts to stop
  • Check if the braking is even or if the vehicle pulls to one side
  • Check for any unusual noises when you apply brake
  • Check if the handbrakes are effective
  • Check for engine noise and vibration

A. The must-check documents list includes the following:

  • Registration Certificate
  • Insurance Certificate
  • Owner’s Proof
  • Pollution Under Control Certificate
  • Car Maintenance record

A. 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

Who Provides It?

If you are looking forward to buy a new or used car there are multiple ways to choose from. Both online and offline there are different vendors who can help you get your dream car. Here we go with them:

Who Provide It

Online space is overcrowded with classified websites offering listings for used cars. You can ransack these various online portals to get a car that fits your requirements.


You can go to India’s first marketplace, to get your dream vehicle. Get enormous listings of used and new cars along with motorcycles, bicycles, and scooters. Droom is the first online transactional platform providing sellers and buyers with a plenty of other benefits.


Contact a dealer online or visit him personally to buy a used car.

Individual Seller

You can find an individual seller and contact him to crack the used car deal.

Authorized Showroom

Visit an authorized showroom to buy a new branded car. Different makers have their own dedicated showrooms that offer wide selection of latest models of cars.

How Can I Get It?

You can opt for any of the above mentioned options to buy a used or new car. Before making a final deal, make sure to search various online websites to compare prices and know the actual value of the vehicle. This will help figuring out estimated price of the car and you will be in a better position to negotiate with the seller.

It is even better to get it with some additional benefits. Companies like droom offers some hot coupons, buyer protection, genuine listing, safe platform, diversified listings, and so on as extra benefits.

Things To Remember Before Getting One

Before choosing a vehicle make sure to keep in mind the below mentioned points especially when it’s about a used car.

1. Seller Verification

The seller’s credibility should be well-established. If required ask for professional references from the seller.

2. Dealer Reviews

Get reviews of a dealer from previous customers or try finding them online if possible. This will help knowing the trustworthiness of the dealer in long run. At you can find seller reviews and know their authentication.

3. Registration Documents

All original documents like RC, insurance papers, service records and more must be available for viewing and verification.

4. Diagnostic Report

You can opt for vehicle inspection to get a professional diagnostic report mentioning about health and condition of your vehicle. Vehicle inspection is done by an automobile expert who will offer an unbiased review about the vehicle.