To buy a new car is one of the biggest moments in a person’s life. But the effort required to make the right decision and get the best deal, makes it a painstaking process. Thus, to help you in your new car buying journey, we have put together a checklist covering all the points to consider when buying a new car.
Planning To Buy A New Car?
#1) Analyzing the purpose
The first essential step you need to follow is understanding the purpose of your next new car purchase. In other words, you need to know why you are buying the car in the first place, is it for daily commute to work or for leisure trips over the weekend? Will this be your primary car or is it an addition to your existing collection? It further depends upon factors like who will be using the car, the amount of daily running, how many people will generally be seated and more. These factors can heavily influence your decision making.
For example, if you have a large family that goes on road trips frequently, then an MPV/SUV with three rows of seating is the perfect choice for you. And the first car that one can suggest in this segment is the Toyota Innova Crysta.
However, to buy a new car is not that easy. Several other factors play a pivotal role in your decision making which is discussed in the next point.
#2) Decide upon filters - ‘Wants’ and ‘Needs’
The second step when you buy a new car is to differentiate between your ‘wants’ and ‘needs’. A car buying process includes a battle between your heart and head. To explain it in layman's terms, let us revisit the example stated above. Although the Innova Crysta seems to be a perfect choice in the above case, it may not appeal to a particular audience. Many attributes of a vehicle like design and features are subjective. These attributes come under the category ‘wants.’
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Moving to ‘needs’, this list will consist of things that would be an absolute must when you decide to buy a car. Going back to the example, a family of 7 buying a secondary car with less running can settle down with a petrol MPV/SUV which will be their ‘need’.
#3) Deciding a budget
Once you have understood the purpose of the new car and your needs from it, the next logical step would be to select a budget and stick with it. There are various ways in which you can select your budget. A commonly accepted rule is to set about half of your total income (not salary drawn or profits) as the maximum cost of the vehicle. For example, an individual earning Rs 15 lakh per annum should stick with a car budget of around Rs 7.5 lakh.
And if you are going to finance your new car, then follow the 20/4/10 rule. In this, a down payment of at least 20 percent should be ensured and the loan tenure should be set for 4 years at an interest rate less than 10 percent. This rule will help you narrow down your choices.
#4) Check the value for money proposition
The value-for-money aspect of a car is defined as the amount of car you get for the price you pay (an undefined ratio). Once you have selected the car and fixed your budget, the next step would be to compare variants and get the one that offers the best deal. Most of the time, the mid variants are the most value for money. The ideal variant consists of the right balance of features, safety, and more importantly, supports your fuel and transmission type choice.
#5) Narrowing down options
The last step to buying a new car is the simplest and the most complicated. It is always a tossup between various models in the same price bracket. Typically, you should follow the car that appeals to you the most, even if it has shortcomings here and there - because no car is perfect!
Read Also: How to Buy a New Car and Get a Great Deal
So here is your complete guide to buying a new car. For more insightful tips and updates, follow our blog page!
