How to spot the best deals when buying a car in india
Buying a car? Here's how to get the best deal and the real cost of ownership
This is besides the new buses like Tata Tiago, Toyota Innova Crysta, Hyundai Elantra and Maruti Vitara Brezza that have formerly been launched this time. Dispensable to say, people are perking up to make their big- ticket auto purchase, helped by the perpetration of the Seventh Pay Commission and lifting of ban on diesel vehicles around Delhi.
The only stumbling block which auto should you buy? To help you make the right choice that suits your budget and requirements, ET Wealth tied up withCarDekho.com and linked the top five options in three price orders below Rs 5 lakh, Rs 5-10 lakh and Rs 10-15 lakh. To go through their specifications and prices before zeroing in on one click then Plan to buy a auto this gleeful season? Then are the stylish for different budgets
While price is a pivotal determinant, you also need to consider several other factors that can help you save while buying a car.
Calculate real cost of power
First, fix a budget and also look for buses in that price range. A general rule is that the price of the auto shouldn't exceed 60 of your gross periodic income. So, if your periodic income is Rs8.4 lakh, the auto price shouldn't go beyond Rs 5 lakh. Remember, still, that purchase price isn't the only quantum you'll be spending if you plan to take a loan.
Do the calculation on the factual cost of power it'll include the EMI quantum that will go from your yearly budget and the total interest outstanding, yearly energy cost, enrollment and road levies, insurance decoration and conservation costs.However, making a down payment is a good option to lower your EMI, If you're taking a loan. Check whether you'll be suitable to take the burden of the fresh fiscal outgo.
Financing options
Still, the coming big question is, how to finance it, If you ’ve decided on the auto. You have three options. One, you can pay for it completely if it’s a low-priced vehicle and you have sufficient coffers. In fact, fiscal diary Pankaaj Maalde is against taking a loan for a auto. “ One should n’t take a loan for a depreciating asset and can use the EMI to invest for some other important thing,” he says. You could, of course, save and invest for it if you plan the purch.
For case, if you want to buy a Rs 4 lakh auto in three times, you can start investing Rs every month via Drafts in a balanced fund and, at 12 return, you'll have the asked amount.However, of course, you want the vehicle sooner rather than latterly, If. Should you take it from your bank or the dealer? “ First try to get it from your bank as you're likely to get a cheaper loan and better rates,” says Umang Kumar, President, CarDekho. com and CEO &Co-founder,Gaadi.com.
Once you ’ve decided on the loan, try to make a down payment of at least 20 so that your EMI is lower. Also, make sure that the EMI isn't further than 15 of yourpost-tax yearly income, with all the loan EMIsn't exceeding 35 of the income. While the loan term is generally five times, try to reduce it to 3-4 times and repay at the foremost since it does n’t offer any duty benefits. Another dilemma is whether you should conclude for‘EMI in advance’or‘EMI in arrears’. In the case of former, you pay one EMI in advance to the bank, which deducts this quantum from the loan expended to the dealer. The advance EMI helps reduce the top loan quantum.
In the ultimate, there's no advance EMI paid to the bank and the entire loan quantum is expended to the dealer. The former is a good option since it helps cut your EMI. Search for a good dealer Savings also depend on how good your dealer is. So spend some time looking for one. “ Talk to at least 2-3 dealers.
Though they are n’t allowed to give abatements beyond the sanctioned OEM (original equipment manufacturer) figure, talking to at least three dealers will allow you to push and get a better deal. Also, negotiate with the dealer independently, with and without the loan. Veritably frequently, you can get a better deal with a loan as the dealer gets an income on it, but crosscheck with your bank too,” says Kumar.
Features to look for
The coming decision concerns the auto itself should you buy the base interpretation or the top- end bone? “ You should go for a advanced interpretation because there are several useful features that you just ca n’t upgrade. For case, you ca n’t go from homemade to automatic transmission,” says Kumar. “ But do n’t conclude for all the features blindly.
You can do down with the navigation point since utmost mobile phones allow you to do that,” he adds. One should, of course, give preference to safety features like airbags, as well as rear parking detectors. A good concession is to pick amid-level model rather of a completely loaded one and upgrade with features you want on your own.
Insurance
While there are no abatements on insurance, you can bring down the decoration if you transfer your noclaim perk on the being auto to the new vehicle. For case, a Rs decoration can be cut to Rs with a 50 NCB. There are other ways you can cut the auto’s price. Time your purchase by buying during the gleeful season or in specific months like December or March, when there are big abatements.
But remember that a December purchase will cut the resale value of your auto since it'll be considered a time aged compared with a January or March model. You could also get better deals for buses that aren't on the waiting list or of an unpopular colour, or indeed specific variants. As you go through the list of top buses in three orders in the following runners, keep these cost- cutting measures in mind to make the season indeed more gleeful.
What's the real cost of retaining a auto?
The price at which you buy a auto isn't the only cost you dodge. Over a period of five times, then’s the factual quantum you'll spend after considering the loan interest, energy cost, conservation, insurance and enrollment charges for a Maruti Suzuki Alto 800.
COST OF Power (For Maruti Suzuki Alto 800 Std)
Purchase price
Price of auto Rs2.49 lakh
Loan cost
EMI Rs
Rs 1.99 lakh (80 loan@10.5 for five times)
Total interest Rs 55,411
Total price of auto Rs3.04 lakh
Fuel cost
Cost of petrol Rs64.05 per litre (Delhi)
Avail 20.3 km/ l
Distance covered in 5 times km
Total energy cost Rs1.89 lakh
Registration/ Road levies (approx)
Registration charge Rs 10,000
Road levies for 5 times Rs 20,000
Total Rs 30,000
Maintenance
Average Periodic cost Rs 10,000
Total cost in 5 times Rs 50,000
Insurance cost
Average periodic insurance cost Rs 7,718 (PolicyBazaar)
Total cost for 5 times Rs 38,590
Total cost of ownership
Rs3.04 lakh + Rs 1.89 lakh + Rs 30,000 + Rs 50,000 + Rs 38,590 = Rs 6.11 lakh
