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!