With shutters rising and the route to normalcy getting clearer, the commute has begun in full swing. Owned cars have now become a go-to option for safe travel. Is 2021 the year for your dream car? Hold the thought, and avoid the following 5 most common mistakes while purchasing your next car.
1.Inadequate research
A quintessential part of buying a car is the research that comes with it. Most dealers get the same supply of vehicles from the manufacturers at a similar price. Thus, it is totally up to the dealership to decide the price they would want to sell to you.
Comparing across various dealerships gives you an edge to negotiate, along with an idea of the demand for the vehicle you’re looking at.
Do not hold back from visiting multiple dealers, test-driving similar vehicles, and even hunting for the best terms to get your car loan, if any. To compare your payment cycle and the effect of various tenures and rates, refer to the car loan calculator and play around with the numbers to fit your budget.
2.Too much focus on price
Purchasing a car is a decision we do not make too often, and hence it is a natural tendency to mull over whether we got the best deal. However, more important than getting the right deal is to check whether you’re getting the right car.
Do consider the options of other models, an older make, and similar performing vehicles if they are likely to save you a fortune.
3.Overlooking finance terms
Often, amidst the hunt for the best price of the car, your financing terms might go unnoticed. Car dealers have tie-ups with lenders to finance your car, all in one place. While this might seem a convenient way of doing things, it might not be an optimal one. While looking for the right lender, use the car loan eligibility calculator to check the terms’ feasibility and affordability on the table.
4.Overshooting your budget in the race towards a ‘popular’ car
The most popular car is the one your salesperson would want to push you to buy. This is because the in-demand vehicles often come with a premium and a longer-than-usual waitlist. Whether this car fits your checklist is a decision you must make objectively. To avoid paying this premium, a way to avoid paying this premium is to wait out a few months and then book the vehicle.
5.Underestimating ownership expenses
Often, most of us don’t factor in the added expenses that come with owning a car. Some unavoidable expenses of fuel, maintenance, insurance repairs, and depreciation come with a car purchase. So, the next time you decide you’re okay with paying a little more for that one top-end model, do think about these incremental expenses that it might bring along.
While purchasing a car is a decision you must make very diligently, what you must remember is that the math doesn’t have to be all that confusing. Plan well with a car loan EMI calculator, and go for the one that meets your needs, one you can afford and will enjoy driving!
