QUICK NEW CAR BUYING TIPS.

Once you have decided to buy a car, there is one question that keeps on nagging you-besides your budget- is whether to buy a used car or go for a new car.Buying a new car can be a confusing, frustrating and unpleasant experience.While the truth of the matter is that you might be attracted to buy yourself a brand new car, the money you would have to put on it, might be enough to make you re-think.You need to realize that there is no shame in buying a used car for, at the end of the day, it is a good option.Here's the list of Pros and Cons for your overall view:

PROS OF BUYING A NEW CAR-

• There is no joy than buying a new shining car from the Showroom and calling it your own.
• You don't have to worry about matters like Insurance,RTO Registration,etc all these formalities are taken care by the dealer.
• You don't have to worry about the history of accidents,etc
• You can get the latest feature-packed edition of your choice.
• You can choose your favourite color.

CONS OF BUYING A NEW CAR-

• The cost of the new car will leave a deep vacuum in your pocket.
• A new car starts to depreciate from the time it leaves the showroom.
• The insurance premium you pay on a new car is higher than that on a used car.
• You will have to pay a lumpsum amount as Life-time road tax.
• You have to pay the dealer's handling charges. 
• You have to pay for the RTO registration, New number plate,etc.

Ask yourself once you makeup your mind to buy a new car-

What kind of a car suits my lifestyle?

What is my Budget?

What would be my EMI in case I'm taking a loan?

Am I looking for a compact car, a sedan, or a sports utility vehicle (SUV)?

What are the available cars in this segment?

What are the features I would like to have in my car?

What is the right insurance option?

1- Read the market surveys to choose the right car.Decide what kind of vehicle best suits your needs and budget.Research and be informed. Use internet and read car magazines, to research vehicle types, variants, options, features, and prices.Choose the car with attractive incentives and rebates.Confirm the prices and locate the dealer.It's always good to have two or three vehicles on your wishlist.When you go to the showroom always take a friend with you who has more knowledge about vehicle, just for an second opinion.

2- Decide your budget.The maximum amount of money that you can afford to spend on buying a car.If it is by loan, then decide what EMI  you can afford on your present income.

3- Consider fuel economy.A vehicle that gets more mileage is good for your pocket.For this first you have to decide whether you want Petrol or Diesel car.Petrol cars are cheaper to buy but they don't match up to a diesel vehicle's economy.While a diesel car cost more than petrol and the maintenance expenses are higher.If you have to drive a long distance everyday then diesel will suit otherwise petrol makes sense.

4- Take a test drive for a min of 20 minutes..Drive at different speeds and check for smooth right and left turns.On a straight stretch, make sure the vehicle doesnot pull to one side.Analyse and be sure that the vehicle has characteristics that you are looking for.Inspect and feel the interiors and exteriors.Check for ride comfort,noise, power, braking and handling. Try parking it and reparking it in a parking lot.

5-Vehicle financing-Opt for the lowest interest car loan. Ask the dealer for incentives the manufacturers is offering.Inquire about extended warranty or service contract.Negotiate the price.Most of us know that the sticker price is just a starting for negotiation.And we mayeven know to research the invoice price.But most of us don't  realize that even when we buy a car "at invoice" the dealer has plenty of other ways to make a small profit.One of those ways is something called "dealer holdback".You may think- what is the profit that a dealer makes from selling a car? Well the truth is that- for example:

Take a Rs. 10 lac on road car, and the breakup works out---broadly--
6.00 lacs the company gets.
2.00 lacs are the excise/st/vat/other levies
2.00 lacs dealer margins/registration/octroi/publicity/transportation/insurance

10.00 lacs COMPLETE.
now out of  this 6.00  that  the company  gets, companies like Maruti/ Tata/ Hyundai make  rs 50,000 or 7 to 8%. give or take 15 to 20% of this. while the not so successful sometimes put in upto 50000 from their pockets!!
dealer margins vary and are not constant, from 1.5% to 5%.
exact figures only an analyist can frame

6- Best time to buy a car?  Well it's always towards the end of every month you might be able to get a better deal.This is because a salesman could be closer to hitting his sales target and might be more motivated to work for your deal.Sales people earn their commission based on the percentage of the profit of a car sale.The commission increases when they sell more cars.Also during the months of December you will get more incentives as the manufacturer will be trying to remove old stocks.

HAPPY  PURCHASING!