6 New Car Buying Tips - Video

If you’re in the market to buy a new car, it can very quickly prove to be a complicated and tedious task when you start realizing the plethora of options the market has to offer today. Finding the car you want can be a task in itself but that’s only the first half as you now need to sort out the financials. Most new vehicle purchases are long term financial commitments which are done with the help of banks and other financial institutions. Here are some useful tips you should keep in mind when buying a car. 

Do your Homework

When you’re in the market to buy a new car, you should do your due diligence and research comprehensively. You need to understand the specific requirements of you and your family before buying a car. Many people buy a car seeing someone else have it and end up regretting it, as all cars may not suit your needs. You’ll be the one who’s going to invest money long term, so choose wisely and take your time.

Variants and Trim levels

When you’re in a dealership searching for further details on a car you want to buy, the dealer may try to direct you towards the top variant of said car. This is done because of the higher the variant, the better the margins for the dealer. If a lower variant is fulfilling your needs without any issues, then you should purchase that one even though the top variant may look attractive.

Essential Accessories Pack

This pack mainly consists of chrome garnish, floor mats, seat covers, and the likes that the dealer may try to add to your purchase. But preferably you should go for this as chrome will lose its fade over time and too much chrome sometimes detracts from the look of the car. Fabric seats are actually better for a humid country like ours, and covering them with cheap factory covers only reduces their usability. Also, things like seat covers and floor mats are easily available in the aftermarket, and it is priced much cheaper and of better quality.

Check Manufacturing Date of car

When you’re purchasing a new car, make sure to note down the VIN/chassis number and check it online to see when it was manufactured. If that particular unit has been sitting for a while, you can negotiate with the dealer for a better discount. The dealer has money invested in that unit and he’s paying interest charges to the bank, so he will be looking to sell it quickly. If you’re booking a car, then mention that you don’t want a unit that has been in stock for 4-5 months. If you do buy one old unit, then get a written agreement that you won’t be bearing the bank interest charges.

Car loan

If you’re working for an MNC, and you’re applying for a car loan, then you should keep in mind that private banks also charge a processing fee that can be very high sometimes. If you have a pre-existing relationship with the bank, i.e., a salaried account or other loans with the bank, then you can negotiate the charges. If you are lucky you may get a 100% waiver as well. 

Old car exchange

If you’re going to exchange your old car at the dealer, make sure to check the exchange bonus of the car. Keep the value of the old car and exchange discount separate to the deals you’re getting on the new car, the dealer may try to confuse you in this. Do remember the dealer will not give you the best value as he has to resell it, but negotiate hard to come to a fair middle ground.

Here's hoping that these tips help you when the time comes for you to buy a new car. Best of luck!