How to Save Money While Buying a Car in India
10 Tips to Save Money For Buying a New Car in India
Buying your dream car doesn’t have to dent your finances. Here are ten tips on how to save money for a car in India:
Set a Budget
Purchasing a car in India involves more than just the vehicle's ex-showroom price. It also includes expenses like road taxes, registration fees, and insurance. Furthermore, accessories, fuel expenses, and maintenance charges can quickly add up. Therefore, you need to determine your budget before shopping for a new car.
Higher variants and advanced features can be tempting, but always stick to your predetermined budget range.
Understand Your Needs
The golden rule while buying a car is to understand your needs. The market is full of choices, but not every car fits every lifestyle.
Ask yourself:
- Is it for daily city driving or long highway trips?
- Do you need a fuel-efficient car or something more powerful?
- Will it be used by the family or just you?
- Do you want low maintenance costs or modern features?
By clearly understanding your needs and priorities, you can avoid overspending on features or sizes you don't require.
Choose Between New vs Used Cars
Buying a car is a big decision, and choosing between a new and a used car can save you lakhs. Consider a new car if you plan to keep it for the long term or want the latest features. Otherwise, you can opt for a used car if you are budget-conscious or plan to upgrade soon. Always inspect used cars thoroughly or buy certified pre-owned cars from a trusted dealership.
You can also ask for demo cars (showroom display or test drive units) that are generally sold at a steep discount.
Selecting the Right Fuel Type
A vehicle's fuel type can significantly impact your expenses in terms of long-term ownership costs. Always select the correct fuel type based on your daily/monthly driving distance.
Look for Offers
Car manufacturers and dealers offer attractive discounts during the festive season, the calendar year-end, or the financial year-end. So, time your purchase accordingly if you're not in a hurry.
Most brands also introduce monthly offers on select models to boost sales and clear their inventory. Always check the brand's website, a newspaper, or reputable websites to find the best deals.
Pick the Right Variant
A car comes in multiple variants, so always thoroughly check the variant breakdown and choose the variant that aligns with your needs. Generally, mid-spec variants offer the best value for money. Don't get swayed by alluring features that might not be very useful in everyday life.
Compare Prices across Dealerships
Don't buy from the first dealer you visit. Instead, ask for quotes from multiple dealers and check prices in different cities or neighbouring districts. Many times, dealerships in smaller cities offer better deals and shorter waiting periods.
Save on Car Loan & Financing
If you're planning to take a car loan, compare interest rates from multiple banks and NBFCs. Don't blindly go with dealer-tied financiers.
Tips:
- Use online EMI calculators.
- Negotiate interest rates if you've got a good credit score.
- Stay away from zero-down payment schemes. Instead, try making a higher down payment to reduce the EMI burden.
- Choose the shortest tenure you can comfortably afford.
Avoid Unnecessary Add-ons
Dealers often push expensive accessories, extended warranties, paint protection coatings and roadside assistance packages. Don't fall into the trap; avoid things that aren't essential.
Don't Overpay for Insurance
Car insurance is mandatory, but overpaying isn’t! Avoid dealer insurance if it’s overpriced. You can get cheaper quotes from other insurers.
Tips:
- Negotiate on car insurance with the dealer.
- Check and compare car insurance online.
- Opt for zero depreciation or return-to-invoice policies.
- Avoid unnecessary add-ons that are already covered in your vehicle warranty.
Wrapping Up
Buying a car doesn't mean you have to strain your finances. Through thorough research, effective negotiating tactics, and informed decision-making, you can save significantly on your new car purchase.
FAQs
1. What is the best time to buy a car in India?
Festive seasons, financial year-end or during year-end clearance. Dealers offer heavy discounts and freebies.
2. How do I negotiate the best deal at a dealership?
Get quotes from multiple dealers, check for offers, and competitor models. Ask for cash benefits, corporate discounts, free accessories or extended warranty.
3. Is it compulsory to buy car insurance from the dealer only?
No, it is not compulsory to buy car insurance from the dealer. You are legally free to purchase insurance from any registered insurance provider of your choice.