Car buying guide for the festive season

New car buying Guide

New or Used?

•     Brand new is always good. You get an untouched, non-tampered, factory- quality assured machine of your choice – the one that will most probably be hassle-free to use for a long time if you maintain it properly. Nothing beats the smell of a new car, but, it comes at a price - depreciation. You can virtually write off 20 per cent of the purchase price the moment you drive away from the dealer because it is then a used car. Cars depreciate faster in the first two or three years of their life and the new car buyer has to bear that for the pleasure of being the first owner.
When you buy a used car, you have avoided the heaviest depreciation. Cars will still depreciate in the years that follow, but at a slower rate. New car buyers can choose the engine, transmission, colour of the paint, interior trims and accessories, but, a used car buyer will have to choose from what is available.
•      New car buyers have the reassuring backup of a new car warranty so they know that if anything is wrong or goes wrong they won't have to suffer the consequences of a big repair bill. Nowadays, extended warranty has made it even better for car owners to get their expenses insured from component failures.
A used car buyer, generally, will get a car outside the blanket of warranty. Nowadays many used car dealers have ‘certified’ cars and they offer warranty on the same, but, since there is no standardisation for these certifications, unsuspecting used car buyers may be taken for a ride with cars that have inherent issues and are not in their prime. Also, you or your trusted consulting mechanic may not be able to figure out some issues with the used car in a short spin for a test ride which may crop up later.
•      When you opt to buy a used car, it is possible to get a much bigger car for the same amount of money you spend – ‘a bigger bang for your buck’. You could land a Honda City for the price of a Wagon R or a Mercedes for the price of a Corolla. But then, there is the maintenance part of owning a car that has to be taken into account!

The new car - old car dilemma is quite complex where on one hand you get a brand new machine that you may not have to worry about at all as against a much swankier bigger used car that may burn a hole in your pocket with its maintenance.  But then it is the car that you have always dreamed of owning. Unless you are very sure about the maintenance and usage history of a car and you can afford the maintenance costs of the bigger car, it is always safe to buy a new car.

Petrol or Diesel?

Petrol as well as diesel engines have their own advantages and disadvantages. The gap between them is narrowing by the day making it slightly difficult to choose amongst the two. Add CNG to the mix and it gets even more difficult.
Petrol engines have always been smooth and refined, having minimal noise-vibrations and harshness (NVH). But these days petrol prices are almost 25 per cent more than diesel on an average (except in states like Goa). But, petrol engines are better to drive and cleaner for the environment. Also, petrol engine cars are quite cheap as compared to their diesel variants, by about one lakh rupees at least. Performance enthusiasts prefer petrol cars for their overall performance.
Diesel engines used to be slow, crude and noisy. The latest advancements in diesel engine technology has countered the ‘slow’ and ‘crude’ part and are now as refined as petrol ones. The current generation of diesel engines is mostly turbocharged giving it the missing performance boost. With inherent higher torque, the diesel engines are core economical than their petrol counterparts. Diesel prices being still regulated, it is quite cheaper than petrol, bringing the per kilometre running cost of diesel almost to about half of the per kilometre running cost of a petrol car.
Taking into consideration the running costs per kilometre of petrol and diesel cars, the initial costs of buying these cars and their maintenance costs - buying a diesel car makes financial sense only if your monthly running is more than 1,000 – 1,200 km a month. If the monthly running of your car is less than that, you can opt blindly for a petrol car.

Used car Buying Guide

TEST DRIVE

Now, if you have made up your mind to buy a new car, you will have to first find the cars that fit your set of requirements – the set you have already prepared in the previous section. Once you have shortlisted the cars, you have to go to the dealerships to see and feel how each car is to be in and to drive.
If you chose to buy a used car, ask for the car's maintenance record from the owner, dealer, or repair shop. Test drive the car on hills, highways, and in stop-and-go traffic. Have the car inspected by a mechanic you hire. Find out as much as you can about the dealer from local consumer protection officials. If you buy a car "as is," you'll have to pay for anything that goes wrong after the sale. Examine the car's repair record, maintenance costs, safety and mileage ratings in consumer magazines or online. Make sure all oral promises are written into the Buyer's Guide. You have the right to see a copy of the dealer's warranty before you make your purchase. Warranties are included in the price of the product; service contracts cost extra and are sold separately.
When you finally decide on the car that you would want to buy, here are a few tips that will help you with the actual buying process.

Negotiating with dealers:

It is always a buyer’s market which means you can bargain with dealers for a better deal, but you need to be prepared for the battle.
•    Do some homework on market price before you go shopping so you know the value of the car you're buying and the value of your trade-in. That way you'll be better placed to barter with the dealer.
•    Do some research for any offers provided by the manufacturer and/or the dealer. Also, some research about competitor cars, their prices and discounts would help.
•    For used cars, do not settle on the first car you inspect. Visit a number of dealers and compare deals before making a commitment.
•    Look for a dealer well stocked with the car you want and he'll be more prepared to deal with you.
•    Shop towards the end of the month when dealers are looking to get their quotas up.
•    Get as many freebies as you can from the dealer.

Financing your wheels:

Few of us are able to hand over a wad of cash to pay for the car; we all need finance for the purchase.
•    Before you start, work out how much you can afford to pay, and how much you can afford to repay.
•    Have your finance arranged before you go shopping, but don't tell the dealer. Dealers will often cut the price of a car believing they'll make money on the finance.
•    Finance through dealers is the most expensive, dealers are on-selling the finance to you and they are making a profit on the deal, so cut out the middle man and go straight to the source of the finance.
•    Independent finance companies specialising in car finance often have the lowest interest rate, and some offer fast approvals with an online service.

Where to Buy

•    In case of a new car, buying from a local dealer or an authorized dealer does not make much of a difference as long as you are getting a better price quote.
•    In case of used cars, if you are buying it from a dealer, it is better to research a bit upon his credibility before going to him. Any references of previous customers would help.
•    Dealers also have to guarantee ownership of the vehicle, that there is no outstanding finance on it which might complicate matters later. They also have to guarantee the odometer reading.

In a nutshell

In a nutshell

1.    Decide how much you want to spend on the car.
2.    Decide what exactly you need from the car.
3.    Decide new or used, petrol or diesel car.
4.    Decide on which car to buy after due diligence and research.
5.    Negotiate hard with the dealer for the best price using your homework.

We at CarWale wish you a very happy and prosperous festive season with a new car resting in your garage!