7 Ways To Save Money While Purchasing A New Car
Buying a new car can be a daunting experience. From choosing the right model variant to choosing the accessories and features that fit your budget and need, From getting the best finance plan to scoring the best discounts and freebies. But if you walk in as an informed, empowered the consumer, you can avoid common — and expensive — mistakes.
There’s much more to acquire a new car than going to the dealership and making a payment. Apart from bargaining with the dealer for the odd discount, there are several other ways to save money while buying a new car.
Follow these guidelines and you’d be able to save thousands of rupees on your next car. You can thank us later.
Know your Budget:
One of the most important decisions prior to buying a car is to know your budget and narrow down your options based on that. The sales people have a tendency to upsell and lure customers to purchase more expensive variants, which will only frustrate you and waste your time. A good understanding of the desired features beforehand can be useful.
Have a Good Finance Plan:
Several sources talk about few common financing mistakes that consumers make while buying a car. It is always recommended to do a good comparison of interest rates offered by different banks on Car Loans. There is no hard and fast rule of getting a loan from the bank you have an account with. Mentioned below are some more mistakes that people make before securing the best deal.
The first is not knowing their CIBIL score to get the best rates on a car loan and to counter any dealers who might lie about a CIBIL score to increase financing rates.
The second mistake is not getting a pre-approved car loan. Knowing you are pre-approved will keep their rates competitive.
Third, shoppers may not realize but when they end up paying more on the vehicle than it’s worth because of the long EMI duration. Better avoid this situation: put at least 20 percent down on the car and finance for not more than 48 months
Get in Touch with an Authorized Dealership:
Always buy your car from the Authorized Dealership. An unauthorized car dealer may offer greater discounts on the car you purchase, however, may not provide a comprehensive warranty on car parts.
An Authorized dealership can give you various types of discounts such as:
- Dealer Discount
- Discount on Finance
- Loyalty Bonus
- Corporate Discounts
- Discount on the Insurance Premium
- Festive Discounts
- End of the Financial year Discounts
Availing these discounts can help you save more than 10% on the car price.
Avoid Car Insurance from the Dealership:
Not taking insurance from the dealer can actually save a lot of your money because the insurance companies offer heavy commissions to the car dealers for the sale of insurance.
It’s not necessary that you buy your car insurance from the dealer only. You can call the insurance agents from various companies, and buy an insurance, which suits you the best. You can easily save anywhere around INR 2K – 4K by following this simple trick. You can also search online and compare different insurance schemes across companies.
Get your Car Serviced through Multi brands Service provider or Doorstep solutions such as Automen:
Every car comes with a 2-year maintenance warranty. It is recommended that you avail the services from the dealership during the warranty period. After the warranty period is over, you are free to get your car serviced from anywhere.
It is possible to get your car serviced with genuine spares and oils at a cheaper price than the dealership. There are many 3rd party solutions that enable car servicing. One such option is Automen, which is a doorstep servicing solution that services all brands of cars within 90 minutes at your home or office. You can find more information about them from their website www.automen.in
Extended Warranty Trap:
Extended warranties are a trap to make the customers keep coming back to the service stations. Most modern cars are engineered with high precision and hardly have any major breakdowns. All they require is regular maintenance and service which can be done at any independent service station.
Buy Accessories from Independent Retailers:
Dealers make a lot of money on accessories. Accessory prices at the dealership are much higher than the aftermarket. Make sure that you find out and compare the prices of the accessories from independent retailers and online stores before making your purchase.
Keep these points in mind to save BIG bucks before your next Car purchase.