The questions which I asked myself before I bought my car.
When should you buy a car?
When there is a need to commute (atleast 40 KMs a day) or for other reasons like family, prestige etc. The reason why I choose a sedan and not a hatchback was that, I take my car to my native place, which is around 650 KMs away. So didn’t want my family to feel cramped.
What would be the best option to buy a car?
If you have full cash, that is the best option available. If choosing finance, go for atmost 3 years not more than that. Look for any travel agencies their cars would be financed for not more than 3 years. That is the best value for money.
Imagine if you took 5 years finance and at the end of 4 year you are planning to upgrade to a new car. Which I did, selling my Maruti 800. You end up making a huge loss.
Market price of car during the 4year + Finance settlement charges (1 year interest rate + pre closure interest amount) = Market price of your car at the 5 year.
What are the things you should look for?
Safety, Value for money, Space, Looks – these are my terms. May differ with individual.
The moment you drive your car from the car lot, the value of the car depreciates by 20 percent. Shit man. I look for value for money than looks. Look for your ideal car.
What car to choose, Petrol or Diesel, Why?
Petrol cars – good, if you are going to use for your personal and family use and won’t cross more than 50 KMS/day.
Diesel cars – good, if you are going to travel more than 60 KMS and odd/day. That should be better choice when you look at the service point of view. That is one reason you will find most cabs and travel agencies operate Diesel cars than the petrol one.
Now let us break down the pricing details of the car you plan to purchase.
Ex Showroom price – cost that the manufacturer expects, no tax.
On Road Price -Cost of the car + Life time road tax + Annual insurance
Now let me discuss where all you can save money in the price components
- Actual car value – manufacturer price – depends on the dealer. Bargain here with the dealer
- Annual Insurance – Don’t take the policy from the dealer, talk to some private insurance agencies (Bajaj Alliance, TATA AIG, ICICI lombard), even the public players like (New India Assurance) Bargain here
- Life time Road tax – Don’t even dream about it. The Government own our ass.
- Finance (if you have100% cash that is the best option) Don’t take the options from the dealer, talk to private players like (Kotak, ICICI, ABN Amro etc) Bargain here
Sites to visit before you buy a car http://www.carwale.com
The carwale site has enough calculators for eg. the EMI calculator.
Kindly note: I would have asked you not to get leads for the Finance and the Annual insurance from the dealer. Still compare the prices individually and the comprehensive package offered by the car dealer. Check which is the best & Go for it.
compare cars of your choice before you buy, take test drives, show it to your friends and family. You will come to hear about the good and bad about the car which you are planning to own.
Here is my test drive experience on Mahindra Renault Logan
Some more post which are in continuation with Mahindra Renault Logan
- Why Mahindra Logan, Renault Logan, Dacia Logan?
- Mahindra Logan – Usability Explored
- Is your Mahindra Logan in safe hands – After sales, What service
- Mahindra Logan – Look out for the new version
- Mahindra Renault Logan free service – unveiled
- The Devil in my Mahindra Renault Logan
- Tested on animals – Mahindra Renault Logan