If you are planning to buy a new car, here’s everything you will need to know.
Buying a new car is a special feeling – the smell of fresh paint, the feature-loaded interiors, and the roar of the engine. But, imagine taking the car out on a bright sunny day and watching in silence as some careless auto-driver rams into its trunk. Ouch!
So, should you dump the idea of buying a car altogether? Not really.
If you are all set to shift gears, here’s a ready list of things which will get you up to speed before you buy a new car:
Do A Thorough Research
Buying a new car is an expensive affair. Before you plunge in, make sure to do thorough research on the dealers. Find out if the offered price is competitive and whether the dealers have positive reviews in the market. There are hundreds of car dealers out there. Some are fair, some are not. A proper groundwork will help you save money and protect you from running into potential trouble in the future.
Pick The Right Time To Buy Your New Car
Every car dealer has their respective targets to meet. Generally, the end of the year is when you are likely to get the maximum discount as this is when the dealers face trouble in meeting their sales targets. Also, manufacturers tend to phase out older models at the end of the year which gives you ample scope to secure a sweet deal in your favour.
Take A Test Drive Before You Say Yes
You have got hundreds of miles ahead of you, so make sure you don’t settle for something you are not absolutely sure about. Before you are ready to sign the papers, check for scratches, dents, or any signs of physical damage and get the engine inspected by a trusted mechanic. Even if the car looks great on the outside, there might be potential trouble brewing inside.
Don’t Ignore Your Credit Score
Your Credit Score will come in handy the minute you start looking for offers on Car Loans. If you have a great Credit Score, you will be surprised to see the number of eligible offers at your disposal. Plus, you will also get the benefit of getting your loan at a lower rate of interest along with a much flexible tenure of payment. Get a copy of your credit report and check whether it has any error or inconsistency before reaching out to a lender.
Get The Finances Right
If you have made up your mind about getting a Car Loan, there is a lot that you can choose from. However, not every offer out there is perfectly suited to meet your needs. While picking a Car Loan, check out the terms and conditions and find out whether you are eligible for it. Also, be extra careful while selecting your loan type. You’d probably want to go for a fixed rate loan if you are on a tight budget and buying a new car. You could pick a variable loan rate if you are opting for an old model and you plan to pay the loan back ahead of schedule.
Additional Reading: Car Loan: Top 5 Frequently Answered Questions
Consider Opting For Used Cars
Young working professionals are increasingly opting for used cars. Used cars are hassle-free and they don’t burn a hole in the pocket. On top of that, you need not really worry about its depreciating value nor do you have the burden of a huge insurance cost to bear.
Additional Reading: Popular Used Car Loans In India
Pick The Right Car Insurance
When you are shopping for Car Insurance, don’t just blindly go out and pick the one that’s cheapest. Instead, explore the various insurance covers available in the market, weigh your options and buy the one that’s offering maximum coverage.
Additional Reading: Car Insurance FAQs
Third-Party Insurance Vs Comprehensive Insurance
Third-party insurance is a basic Car Insurance that covers the damages caused to a third-party in the event of a car accident. The government has made it mandatory for all vehicles plying on Indian roads to have a third-party insurance cover.
Whereas, a comprehensive Car Insurance policy covers third-party liabilities as well as damages caused to you and your car. This type of insurance will also provide you with financial protection against liabilities arising from natural disasters, theft, and accidents.
If you are buying a new car, the choice before you is simple. While basic third-party insurance is useful in case of an accident, it is not good enough to be the only insurance cover for your car. Try opting for a comprehensive Car Insurance policy. It may seem a little expensive now, but in the long run, it will help you take your mind off worries when you take your car out for a ride.
Ready To Hit The Road?
Buying a new car can be a tedious affair if you are not armed with the right tools. At Bankbazaar, you’ll find it all: from the best Car Loan offers in town to customised insurance plans at lower premium rates to even tips on servicing and maintaining your new car. Check them out before you hit the road.