How to buy a car without burning your pocket
Car prices in India have been increasing multifold every year. In 2022 alone, several automakers such as Tata Motors, Maruti Suzuki, Hyundai, Kia, Toyota, and MG Motor have announced price hikes for their respective products. Besides the increasing vehicle prices, consumers are also facing bottlenecks like surging interest rates, high fuel prices etc. In such a situation, many potential car buyers are reassessing their plan to buy a new model.
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Car buying is always a pricey affair, as it is a big-ticket purchase. Hence, one should plan and assess multiple factors properly before buying a car. With the right preparation, one can buy a car without making the whole process a burden. Here is how to buy a car without burning your pocket.
Calculate and secure a car loan
The first step before buying a car should be calculating the total loan amount and how much the buyer can afford. It is advised that the monthly EMI amount shouldn't exceed 10 per cent of the buyer's take-home salary. Also, the loan repayment tenure should be within 60 months. In the case of a used car, the loan repayment tenure shouldn't exceed 36 months. After the calculation is done, find a lender that is offering a car loan at an affordable interest rate. Getting a pre-approved car loan will allow you a better-negotiating position with a dealer.
Calculate cost of ownership
A car not only comes with an upfront cost but lifelong operational costs as well. While choosing the vehicle, one should take the cost factors like maintenance, fuel, insurance, registration and taxes that all add to the cost of ownership along with the sticker price. This is the key to setting a budget for the car. The monthly cost of ownership of the car, including the loan repayment, shouldn’t exceed 20 per cent of the buyer's take-home salary.
Select the right car
A car should be selected based on the need, considering practicality. Many customers feel the urge to buy a luxury car just because of its appeal, without assessing the cost of ownership and practicality. Hence, choose the car carefully depending on your daily requirement and practicality. Consider factors like transmission, fuel option etc. Also, don't try to imitate someone, as everyone has different preferences.
Take test drive
After selecting the preferred car, take a test drive of the vehicle. One test drive may not help you to understand it better. In that case, take multiple test drives. Check all the aspects of the car while taking the test drive. Try to take your family as well, because their opinion matters. After feeling satisfied with the test drive, proceed for buying the vehicle.
Calculate and secure a car loan
Calculate cost of ownership
Select the right car
Take test drive
