If you are on the lookout to buy a car, you have landed on the right page. Before you go about it, there are certain factors that you must be careful of to make an informed decision.
- Allocate your budget first:
This would be the first step after you have decided to buy a car. You can buy only for as much as you can afford. So your affordability decides your budget. When you buy a car, you should not only see the initial cost of the car but also the other expenditure that will accompany it, as the fuel cost, maintenance expenses, insurance, taxes, etc. Depending on your income and regular expenses, you will be able to arrive at the budget for which you can buy. This is the same even if you are going to pay by EMIs.
- The choice between new and used cars:
You can either purchase a brand new car or go for used cars too. This also depends majorly on your spending capacity. You have to look into the details and assess the merits of each before you decide on which one to buy. Obviously, the cost of a used car will be lesser than that of a new one.
- The type of car you need:
The main purpose of your buying will also help decide the type of car. There are both diesel and petrol variants of cars available. Choose one after assessing the pros and cons of each. Based on your budget and preferences prepare a list of available models. From this, you can make a final decision on the type of car you want.
- Finance options:
You have to research the finance options even before you visit the car dealer. There are many in-house car financing specialists available. It is very clear that you will not be purchasing your car by outright payment. To decide on the loan you have to research through the many banks and institutions for deciding the favorable rate of interest. Compare the interest rates between different banks and financial institutions. Decide on the EMI based on your monthly income capacity.
- Check the resale value:
Checking on the resale value of the car is very important as you are not going to cling to the same vehicle lifelong. It is common for vehicles to have high maintenance and repair needs. So availability of proper service centers will also be a deciding factor for the resale value.