7 Things To Consider While Purchasing A New Car

Are you thinking of purchasing a new car? If yes, then here is the complete guide which will help you make an informed and wise decision. Unlike other items, the purchase of a car involves a relatively higher investment and thus, it should be done after a proper research. Following are the 7 points which you must consider before buying a new car to make a good decision.

7 Things To Consider While Purchasing A New Car

Before zeroing your dream car, some basic questions might pop in your head. We know its a crucial decision, and hence the points discussed below will further eliminate the air of doubts hovering in your mind.

1. Purpose
2. Finance
3. Insurance
4. Resale Value
5. Safety Features
6. After-sales Services
7. Test Drive

Let’s discuss all these points in detail:

1. Purpose

Before purchasing a car, you need to do some underlying homework regarding the type of car you want to buy. Well, there are no stringent parameters but deciding on the purpose and need give you some clarity regarding the type of the vehicle. While hatchbacks come with a cosy seating capacity of four, sedans or sports utility vehicle (SUV) feature a larger accommodation capacity of five to eight.

2. Finance

It is a crucial factor in sorting out the model and type of car you wish to have. If you have adequate funds, then you can easily go for the down payment and purchase your dream car. However, in case if you are slightly out of budget, then there is no need to compromise. Finance can be managed easily through different banks and NBFCs that are ready to offer you affordable car loans. To ease the financial loads, these loans are equipped with features like equated monthly payments (EMIs). This facility empowers the debtors, to repay the amounts every month in small chunks within the loan tenure.

3. Insurance

In India, it is mandatory to have car insurance as per the Indian Motor Tariff, 2002. This aspect is often neglected by many people as they are ignorant regarding the importance of it. There is no need to get car insurance from the car dealer just because you are purchasing your car from that showroom. Besides, there are two types of car insurance, third party/liability only insurance policy and comprehensive insurance policy. Suffice to say; third party insurance doesn’t give you full coverage compared to a comprehensive car insurance policy. With a maximum coverage under a single umbrella, it is more beneficial to get a comprehensive policy and protect your car from various types of damages. Before purchasing the car, you can also compare several plans to get an idea of which policy you require. For this, you can refer to our platform InsuranceDekho where you can get everything in a few clicks.

4. Resale Value

There are two universal facts that revolve around the car, and this absolutely needs to be taken into analysis before any purchase. Firstly, all cars are depreciating assets, and secondly, after a few years, their features get upgraded. These two factors accompanied by the brand you select helps to establish a genuine resale value to make the purchase in a smarter way. Though, there is no concrete phenomenon that can give you the exact figures of the resale value of a car. Research in detail about the brand of the car and will surely strike a hint for average resale value.

5. Safety Features

The Indian Government has been continuously bringing amendments in the law to make the roads safer for riders and travellers. There are several such factors that car owners must double-check before purchasing a car. After October 2019, it is mandatory for the car to be facilitated with safety features like Anti-locking Braking System (ABS), Reverse Parking Sensor, and dual airbags as a part of standard accessories. Among other safety concerns, you can also check the Autonomous Emergency Braking, electronic stability control, steering, etc.

6. After-Sales Services

If you are wondering that after-sales services in the car only provides support in maintenance and repairs, then you need to update your knowledge. Apart from these, there are a host of services which comprises of towing facilities, roadside assistance insurance and others. Thus, enquire about all the services from your car dealer before making the final settlement.

7. Test Drive

Finally, after analysing all the factors, this is the last step you must follow so that there is no room for regrets after you close the deal. Don’t just simply get swayed away by the sugar-coated words of the salesman as it might cost you later. Request for a test drive to check your comfort zone with the car you are willing to purchase. See how smoothly you can drive the wheels, see the roads ahead, etc. The inner response will ultimately have a greater impact on your final decision to purchase the car.

So these are some of the vital decisions every vigilant car-purchaser must assess before the purchase of a new car. In addition to this, there is always scope for customisation and revamping according to one’s own personal preferences.

For further reading:

What Factors Should You Consider Before Purchasing Car Insurance Policy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Source: Acko General Insurance, The Hindu