Buying car this festive season? Here's what you must consider
During the festive season of Dussehra and Diwali, many people in India look forward to buying a new car as it is considered an auspicious period. However, to alleviate the financial strain of acquiring a new vehicle, it is crucial to take into account various aspects such as budget, loan eligibility, insurance rates, and fuel options before going ahead. Here are some critical factors to consider that can help you make a well-informed choice.
Setting budget and checking financing options
Before taking the plunge and purchasing a car, it is vital to establish your budget and assess your loan eligibility. If you decide on a car loan, make sure the bank offers a flexible repayment period and up to 100% financing. However, keep in mind that opting for a car loan entails paying more than the car's actual price due to interest, processing fees, and GST. Furthermore, you will be responsible for EMI payments throughout the loan's duration.
Finding right insurance policy is crucial
Insurance expenses can considerably affect a car's overall cost, making it essential to include them in your decision-making process. Some vehicles come with higher insurance premiums because of their elevated resale value or susceptibility to theft. Additionally, you should steer clear of purchasing unnecessary add-ons that sales representatives might promote to boost their commission. Instead, you should concentrate on minimizing extra costs and finding the right insurance policy.
Deciding fuel type and checking warranty coverage is also essential
Selecting the fuel type, whether petrol, diesel, CNG, or electric, will influence your car's operating expenses. Furthermore, it is best to avoid purchasing an extended warranty with your car since they tend to be costly and offer limited coverage. Rather, ensure that your new vehicle comes with a manufacturer's warranty or set aside funds for potential repair and maintenance costs. Finally, carry out thorough research and refrain from making hasty decisions when investing in such a significant asset.
