| Buying your dream car |
Thinking of buying a car? Aren't we all? Those who don't have it want it-those who have it want to upgrade to a better and bigger one. So what should you keep in mind while picking up a car? You'll save money, avoid, headaches and get the car you want if you pay attention to buying advice from auto-industry insiders and consumer-credit experts.
First, decide what kind of vehicle you need. What you choose is entirely up to you, but a little red sports car is probably unwise if you drive clients around or ferry four kids to school. Similarly, think hard before you pay extra for a four-wheel drive sports utility vehicle if your only off-road driving is in shopping mall parking lots. Consider too, whether a late-model used car, costing thousands of rupees less than a new vehicle, would meet your needs. Normally the car market is divided into segments like the 2-3.5 lakh range, including the Santros, Maruti 800's, etc. Then comes the Rs 4 to Rs 5 lakh range, followed by the Rs 5-8 lakh range. Then of course is the super premium Rs 8 lakh plus segment. So choose the vehicle based on utility and price, which will serve your routine the best.
At the very start you will need ammunition in your search for the best buy. Knowledge — especially here — is power, so learn everything you can about the vehicles you're considering. Do your research before you even talk to a sales person. Check Consumer Reports for the lowdown on a model's value (or lack of value) and the auto magazines for technical and performance data. Check the maintenance guide section of Auto magazines or websites - that shows the repair history on cars. Talk to people who own the cars you're thinking about so you'll get a ground-level view of the good and bad points. If you are on the Internet, use a search engine like Alta Vista or Yahoo! to find what information is available on the World Wide Web. See whether there's a Usenet news group dedicated to discussions of the vehicles you're considering.
Next determine the vehicle value-determine how much money your car of choice - with the options you want - is fetching on the local market. When you get to the auto showroom, you'll probably find good deals and, perhaps, rebates on slow sellers. But expect high prices and little bargaining room on fast-sellers. The first step to getting a good deal on a new car is to be informed. New car cost guides are available in bookstores, libraries and on the World Wide Web. These will help you find the factory invoice price and the cost of various options. When you are negotiating price with the dealer, remember the invoice price does not represent the actual cost of the car. The dealer receives a rebate from the manufacturer for each car he or she sells. Depending on the time of year and the demand for the car, that rebate may be enough profit for the dealer to sell the car "at invoice."
Also get the figure of how much the car will cost you on the road, i.e.- with road tax, insurance and any other taxes. You'll want to visit a few dealers - once to look and another, separate time, to negotiate. Check if there is any provision or deal through which you could Trade-In your old number, if you want convenience, trade in the car you own now. Also if you are interested in selling your car then look at newspaper classified and dealer ads and go to used-carlots and ask how much they'd offer you to get a firm idea of how much your trade-in is worth. The figure printed in a blue book or black book doesn't matter. You have to know the real street price. If the dealer can match that, or come close, snap it up. Normally this trend of trade has not come to India but see if the car dealer or auto finance company can arrange a deal to sell your old car. Also probably you will get more cash if you clean it up and sell it.
Then comes the financing bit. If you are thinking about financing the new car, you may do so through an auto loan or home equity loan. Be sure to get the shortest payback time you can comfortably handle. A shorter-term loan with larger payment amounts will save money in the long run. The beware of the zero interest loans which are just hoaxes and work out to the what is going out of your pocket and when.
You've probably decided that auto leasing is not for you. There can be pluses to leasing mainly for business people, like low down payments, convenience, and accounting advantages for businesses. But it is almost impossible, over the long run, to lease a car for less than it costs to buy. One of the biggest cost in owning a new car is a hidden one-depreciation, with some new cars dropping in value by as much as 20% in the first year on the road. This happens because of many things, wear and tear, government norms on permitted depreciation and the value of the car in the second hand market. The famous cliché in American car showrooms "The minute the car leaves the showroom it depreciates by close to 30-40%" is true for the Indian environment today also.
If you are planning to pick up a second hand car then there are three places from where one can start from - dealers who sell both new and used cars(very few do this in India, but one can take leads from them as to where to go).-- a dealer who deals in only used cars.-- individual owners.
New Car Dealers : With the market of new cars seeing a steady climb down, these dealers increasingly try to make up their profits through this segment. The advantages on offer are that they are thoroughly inspected, give a larger choice, and also service and maintenance warranties. You can insist on confirmation to tax and pollution laws. The condition of these cars is generally better than those offered by others.
Second Hand Car Dealers condition of the cars offered by these dealers is a shade worse because they operate on low profit margins. Most of these cars are in bad shape, with shady workmanship to gloss over the defects. Never buy these until your mechanic vouches for their veracity. pleasant
Individual Owners: Classified advertisements or our Free Classifieds section is as good a place to look out for individual sellers as any. The price they ask for will generally tend to be lower than that demanded by dealers. Double check for the ownership of the car. Have the car checked by your mechanic because these cars are sold on 'as is where is basis'. You have a chance of getting a cool bargain if you persist long enough on this route.
Also in case of a second hand car get the mechanic to check - Engine: The best is an untouched engine. If you do not get this, buy a car with a single reboring and a clean Rs.-10,000 - 20,000 lowers the value of the car. Then comes the Chassis: It is very important to check the undercarriage. The bodyline will tell you if the car has been in an accident or not. Open the bonnet and look at the paintwork. Here you can actually make out if the car has been repainted or not. If you don't get a good set of radial tyres, try to decrease the price by Rs.2,500/- per bald tyre. Look at the wear and tear. If it is not even, then keep a Rs1000/- aside for the alignment that needs to be done. If the battery is not new, decrease the price of the car by Rs.2,500/- for a new battery, which you will have to buy to run the car. Check to see if the battery is reconditioned or not. Check the following papers: - Blue book – Registration Certificate. Check if it is a duplicate. Check with the RTO for further authentication. Insurance certificate - Costs Rs.500-600. For minimum 3rd party liability insurance. Pollution Under Control certificate. - This is a must for transfer of name. It usually costs Rs.50/- to get it, provided the car meets the norms. Once you've done the security check, then you are cruising and can enjoy your new pair of wheels.
Aru Srivastava