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
First, fix a budget and also look for motorcars in that price range. A general rule is that the price of the bus should not exceed 60 of your gross periodic income. So, if your periodic income is Rs8.4 lakh, the bus price should not go beyond Rs 5 lakh. Remember, still, that purchase price is not the only amount you will be spending if you plan to take a loan.
Do the computation on the factual cost of power it will include the EMI amount that will go from your monthly budget and the total interest outstanding, monthly energy cost, registration and road impositions, insurance decoration and conservationcosts.However, making a down payment is a good option to lower your EMI, If you are taking a loan. Check whether you will be suitable to take the burden of the fresh financial outgo.
Financing options
Still, the coming big question is, how to finance it, If you ’ve decided on the bus. You have three options. One, you can pay for it fully if it’s a low-priced vehicle and you have sufficient resources. In fact, financial journal Pankaaj Maalde is against taking a loan for a bus. “ 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 bus in three times, you can start investing Rs every month via Drafts in a balanced fund and, at 12 return, you will have the askedamount.However, of course, you want the vehicle sooner rather than subsequently, If. Should you take it from your bank or the dealer? “ First try to get it from your bank as you are 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 is not further than 15 of yourpost- duty monthly income, with all the loan EMIs not 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 amount from the loan expended to the dealer. The advance EMI helps reduce the top loan amount.
In the ultimate, there is no advance EMI paid to the bank and the entire loan amount 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're n’t allowed to give abatements beyond the sanctioned OEM ( original outfit manufacturer) figure, talking to at least three dealers will allow you to push and get a better deal. Also, negotiate with the dealer singly, with and without the loan. Truly constantly, 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 enterprises the bus 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 manual 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 hinder parking sensors. A good concession is to pick amid- position model rather of a fully 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 perquisite on the being bus 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 bus’s price. Time your purchase by buying during the festive 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 bus since it will be considered a time aged compared with a January or March model. You could also get better deals for motorcars that are not on the waiting list or of an unpopular colour, or indeed specific variants. As you go through the list of top motorcars in three orders in the following runners, keep these cost- cutting measures in mind to make the season indeed more festive.
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
