When buying a new car...

The first car ran on Indian roads in 1897. As early in 1900’s it was only a maharaja of a princely state or a business tycoon who owned a car. The scenario has changed now. It’s a buyers market out there and the ball is in our court. Gone are the days of the Premier Padmini and the Hindustan Ambassador being your only choices for a new car. With most major international brands available in a showroom near you, it’s never been a better time to buy a car. 

Here I would like to list some recommendations that you should take to get the best out of your new car purchase.

Mercedes Benz - B Class: Cheapest ride from merc's stable. Estimated price: 18-22 lakhs. Expcted Launch: Late 2012.

First things first

• Budget: The price is of paramount importance when it comes to the purchase of a new car. One must have proper arrangements for finance. First and foremost decide on the price range you would like to look upon.

• The right car: After deciding on your price range you should outline what sort of car best meets your needs. If you are a family of two there isn’t a need of a large MUV. In the present scenario, a wide range of makes and models would fit your budget.

• Proper Research: Research a car’s future depreciation by looking at used car values in your city and make a point of finding information on fuel efficiency, service costs and insurance premiums. 

• Diesel or petrol: There was a time when diesel engines were considered to be a curse, those days are gone. Common-rail technology has brought diesels to a level of performance and reliability that is at least equal to that of petrol cars. New age diesels are lightning fast, super efficient and offer better drivability than petrols, but there is a price premium to pay. But if you look at it from an EMI perspective( EMI+Monthly running cost) the diesels would be cheaper. 

• Safety Options: I would thoroughly recommend safety options such as ABS, airbags and traction control systems in cars. Consider cars that offer these options. 

• Go for a test drive: Never buy a car based solely on someone else’s opinion, even if it is that of a world-renowned automotive expert. What is right for someone else may not be right for you; think about details like the comfort of the driving position and engine responsiveness.

• The best time: You should avoid buying a car in December; by waiting less than a month your car will be a year newer on paper. Always wait for discount seasons, there are times when people stay away from buying due to superstitions. That’s when you gotta grab your piece of cake. 

Mahindra Ssangyong-Korando: This will be the second model from mahindra ssangyong tie up. Pricing will be competitive with an expected base price of Rs 15 lakhs when the car goes on sale in late-2012.

Other points

• Exchange: If you want to exchange your old car, don’t tell the salesperson until the deal is on. This will prevent dealers from buying your old car at the lowest price and selling your new car at the highest. Dealerships make a lot of money on used car sales. 

• Buy insurance yourself: Dealerships profit from fat commissions on every insurance policy sold. Don't buy insurance coverage from the showroom; instead, shop around and take quotes from 3 - 4 insurance companies / agents. You stand to save anywhere between 20 - 40% on insurance by shopping yourself and bypassing the dealer here!

• No Claim Bonus (NCB): Simply put, the NCB lets you transfer the insurance premium benefits of your old car to your new one if you have made no damage claims. Your old car must be sold or transferred to make this possible, but the NCB alone will save thousands on the purchase cost of your car! 

• Extended warranties: Extended coverage for your new car is always a good idea. Even the most reliable cars have occasional defects and parts for modern cars can be tremendously expensive to replace. 

• Accessories: Never go for any accessory from the showroom! Some authorized dealerships charge as much as Rs.4,000 for sun film on a hatchback, while an after-market option costs only Rs.1,200. Dealerships make a lot of money on accessories.

• Never buy any model which is running in the market for past 4-5 years. The company can discontinue(permanently/remodel) the model within that span of time. This will sorely reduce the resale value. (Read the note*)

• Never trust an ad or a salesman: Advertisements and salesmen can be misleading sources of information and their claims should always be taken with a pinch of salt. Verify important points with car owners.

Note* : Fiat has upgraded its models in the year 2012. The company is still left with old stock (2011). The most expensive model of Linea, T-Jet(Petrol) which was priced around 11 lakhs initially is now available at 6-7 lakhs rupees! Highly recommended for enthusiasts. Go to your nearest dealer right away! 

Ford Ecosport: A Mini-SUV from ford priced b/w 6-7.5 lakhs. Expected launch: Early 2013.