The Indian automobile market is the fourth-largest in the world. We have a healthy mix of Indian and foreign companies operating in the industry offering a number of options for car buyers. Similarly, the used car market is also an influential segment in the auto industry having significant participation from both organized and unorganized players. Now whether you are in the market to buy or sell a car, there are some common things that you have to keep in mind to make a good decision. Here’s the list:
1) Analyze your needs: The fundamental question you have to ask yourself is about the specific need that you want to fulfill with the vehicle. Whether you want to buy a car for individual use or the vehicle will be utilized for ferrying the extended family. There are others who want to buy a car for off-roading and want to explore their adventurous side while for some; the vehicle serves the purpose of identity and their status. All these requirements are different, and hence require adopting a significantly different decision approach. In sum, more clarity about your need is likely to result in better decision making.
2) Fix the budget: Once you get clarity about need, the next step is to plan your budget. This is fundamentally important as most of the people only look at the retail price of the car to make an estimate of the cost. Remember, the retail price is only one component and you need to consider other important dimensions of ownership cost too. Some of these important dimensions include insurance cost, service and repair cost, and fuel cost. While deciding on the budget, you can take help of some of the thumb rules popular in the industry – the price of the car must not greater than 40% of your total annual income, or EMI amount on the car should not exceed 20% of your monthly income. All these measures are going to help you reach a correct figure and then taking an informed purchase decision.
3) Select the Car: Once you are clear with your needs and budget, it becomes quite easy to select a car fulfilling both these expectations. However, the selection of a car is not an easy process as we have a range of options in almost all categories - whether it is a budget car segment or ultra-luxurious category. Some Individuals tend to make the decision based purely on discounts and freebies offered by car manufacturers which is not an intelligent way of deciding things. You should rank the cars on the basis of their reliability, fuel efficiency, after-sales service network, and warranties offered by the brands. Also, pay special emphasis on needs that you have identified in the very first step and then select a vehicle which is the best fit. In addition, make sure that the car you have selected must be in your budget so that you won’t end up stressing your financials in the long term.
4) Examine offers carefully: Many car companies or their dealers come out with some attractive freebies at different times of the year. While it is good practice not to look the gift horse in the mouth, it is necessary that you should carefully analyze what freebies you are getting. First of all, pay close attention to the free accessories prices of which are usually inflated by dealerships to make you realize that you are getting a big discount from their side. Do not fall prey to this practice and if possible, go for the option of cash discount which will translate into a handsome saving in the end.
5) Avoid Trading-in your car: Many dealerships offer a trading-in facility whereby you can exchange your old car while buying a new car. It feels like a convenient feature at a first glance though you end up getting the far lower value of your car. Dealerships will buy your old car below than its actual market value and hence you should avoid trading in your car. Rather, the best method is to sell your car on portals such as https://www.gaadi.com/ which provides the best value for your old car and that too in a single visit.
6) Petrol or diesel or CNG: The fuel cost is one of the major components of the total cost of ownership. The cost of petrol is the highest of all fuels although the retail price of petrol cars are the lowest. Diesel cars are costlier at least by 75k-100k when compared to their petrol counterparts though diesel is cheaper by Rs 6/liter than petrol in terms of fuel cost. Before you make a purchase decision, calculate your travel requirement per day. If you travel more than 80 km /day, it makes sense for you to purchase a diesel car as you will able to recover the extra money spent on the initial purchase within 2-3 years. However, this recovery period could be elongated if you have financed your purchase. The option of a CNG car can also be considered although CNG supply constraint is major reason why customers are holding back. The CNG cylinder fitted in the boot eats up most of the luggage space which is also a turn-off for many in the market.
7) Checking the documentation: If you are planning to buy a used car, you need to first ensure that documentation is complete in every sense of the word. Check the status of the registration certificate (RC) and carefully examine the name and details of the seller. Any kind of discrepancy in the RC could land you in the trouble in future and it is advisable not to go for the deal where you are not sure about the authenticity of the documents. Similarly, the insurance and pollution under control should have the same credentials as on the RC of a car.
8) Where to purchase: The decision is especially crucial in case you are buying a used car. You can purchase a vehicle from either certified dealerships or private sellers. Used car dealers which sell certified used cars are genuine and before selling vehicles, they comprehensively test the quality of these used cars on a number of parameters. As a result, the chances of you getting a defective car are minimized. You can also opt to buy from a private seller; however, there are many risks involved in the process. You might get a deal from a private seller at a low cost but then you are never sure about the quality of the vehicle you are going to get.
9) Evaluate the car’s value: Irrespective of whether you are a buyer or seller, you should have a rough idea of the value of the car you intends to sell or purchase. One of the easiest ways to do that is to visit CarDekho Gaadi website, enter the details such as registration year, model, and the variant of the car, and you’ll instantly get the estimated value of the car. This value will help you to negotiate confidently during the deal negotiations.
10) Inspecting the car: If you are planning to buy a used car, you should devote a considerable amount of time and effort to inspect the model you intend to buy. Look beyond the obvious points and pay special attention to engine, transmission, and suspension of the car. Most of the sellers will keep their cars up to date from outside and inside but the real worth of the car is under the hood. You can also accompany some trained mechanic who will help you to determine the actual condition of mechanical parts of the car.
11) Take a test drive: You must take a test drive before buying a car (whether used or new). Test drives provide you a true picture of the reality and help you to make the right purchase decision. Many times you find a car very attractive in terms of looks but when you test drive it, you find a number of anomalies - driving positioning is not accurate, gearbox is hard, engine refinement is not up to the mark, road noise filter in and quite obtrusive, and so forth. You need to remember that cars are not only about the looks and the way they drive and handle is more important than their aesthetics. This makes the test drive an important component of the purchase decision.
12) Transfer the ownership: If you are selling your used car, make sure you transfer the ownership to the new buyer as soon as possible. Be aware that you will continue to be held liable for damages till the time RC of the vehicle is in your name even if you have sold your car and the new owner has its possession. This calls for quick transfer of ownership and CarDekho Gaadi can be of great help here. If you sell your car on Gaadi portal, you’ll avail free RC transfer service from the portal which is a great thing to have.
To sum up, the decision related to car buying or selling is one of the important decisions of our life. The decision requires comprehensive deliberation and analysis and one must resist the temptation of haste while going through this process. Additionally, you can check out the blog section of CarDekho Gaddi at https://www.gaadi.com/blog which will help you to make an informed decision related to buying/selling of cars.
Also Read:- 10 Steps to Selling Your Car