Choosing a car is an important decision that merits careful planning

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Choosing a car is an important decision that merits careful planning

  1. 1. Choosing a car is an important decision that merits careful planning. Before buying a car, most buyers arefaced with an equation that goes such: "What is it going to cost me? Will that equal what Im about toacquire?" Think about how you plan to use the car before you shop for one, whether you intend to use thecar for daily commuting, recreation, weekends and evenings out, driving in the city or on highways. Alsokeep other factors in mind such as fuel efficiency, service network, safety, size of your family, seatingcapacity etc.Ask yourself What kind of a car suits my lifestyle? What is my Budget? What would be my EMI in case I’m taking a loan? What are the available cars in this segment? Am I looking for a compact car, a sedan, or a sports utility vehicle (SUV)? What are the features I would like to have in my car? What is the right insurance option?With answers to the above, you would have done ample research to find the type of car that suits you best.Information available on Carazoo will help you narrow down your choices to the brands that interest youmost.Here are a few car buying tips to keep in mind while buying a new carIdentify the car you want to buy Calculate the amount you will pay for your new vehicle. Read market surveys to choose the right car. Confirm the prices and locate the dealers.Go in for the right deal Choose cars with attractive incentives and rebates. Be careful of hidden incentives. Calculate the amount you will need, in case you are taking a loan and also how much you will be paying as interest.Check the features and quality of any car Check for the features offered and the additional optional fittings because different cars come with different packages. Check for factors that are important to you such as mileage, service network, and safety.Gather expert reviews Read expert reviews and comments on the vehicle you are buying. Do a comparative study with other vehicles to check for added benefits. Analyze the engine power, seating capacity, mileage, and other technical specifications.Financing, Warranties and Insurance Opt for the lowest interest car loan. Ask for incentives the manufacturer is offering. Enquire about extended warranty or service contract. Automobile insurance is a must, review insurance policies from various insurance companies to make the right choice. Check with insurance companies before you buy your new vehicle; compare these insurance rates to make the right choice.Test drive the vehicle Analyze and be sure that the vehicle has characteristics that you are looking for. Inspect and feel the interiors and exteriors for unsightly gaps. Check for ride comfort, noise, power/acceleration, braking and handling Check your vehicle thoroughly before driving it home.
  2. 2. Now is a good time to buy a new car. The struggles facing the auto industry are unprecedented and so are thedeals available to buyers. Car dealers need to sell cars in order to stay in business, which makes this a strongbuyers’ market. Rebates, financing, and trade-in values are the best they’ve been in a long time.But that doesn’t mean it’s an easy time to buy a car, and it doesn’t mean dealers are going to lie down andgive the cars away. A savvy buyer must always be ready, and the preparation should start before you ever setfoot in a showroom.Know the Invoice PriceOnce you’ve settled on what car is right for you, look up the invoice price for that car in our Buyer’sGuide. Invoice price is what the dealer pays the manufacturer for the car; the manufacturer’s suggested retailprice (MSRP, or “sticker price”) includes hundreds—usually thousands—of dollars of profit for the dealer.With the exception of all-new or very popular models, you should be able to get a new car for closer toinvoice than MSRP. Knowing the invoice price of your car will tell the dealer that you mean business andexpect a good deal. Don’t walk into the dealership without this information.Check the Manufacturer’s Website for RebatesMany buyers will qualify for multiple rebates, some of which may not even be made public. You might belongto organizations or receive coupons in the mail that entitle you to additional rebates. Be aware of all rebatesfor which you qualify and make sure you receive them. Dealers are known for not giving buyers every rebateavailable to them, instead keeping one or two as additional profit.Research the DealersBuying from a cooperative and fair dealer will save you money and headaches. There are a number ofwebsites that allow people to post reviews of dealerships, but their coverage is spotty and incomplete. If youcan’t find online reviews of the dealer you are considering, just talk to people. Your friends and neighborspurchase cars and should be honest with you about whether they were happy with their car or dealer.Check Your Credit HistoryMost people who shop for cars will need a loan. How much that loan costs will depend on your credit history,and knowing your credit history will give you a better idea what to expect from lenders. The Fair andAccurate Credit Transaction Act of 2003 (FACTA) allows every consumer to get a free copy of his or hercredit report once a year from each of the three major credit-reporting agencies (TransUnion, Experian, andEquifax). Get a copy of your credit report, and check it for accuracy. Pay the extra few dollars to get yourcredit score as well, as it is one of the major factors that banks use to determine your creditworthiness.Get Your Own FinancingThe biggest profit center for a car dealership is its finance department. Dealers contract with banks to get thebest rates available but might not actually give you those rates. They might get you a car loan for 4.9 percentAPR but draw up your finance contract at 5.9 percent. That one-percent markup is strictly profit for thedealer. You can often get a better interest rate from your local bank or credit union, or you can present therates you were offered elsewhere to your salesman and challenge him to match or beat them. That being said,promotional rates from manufacturers—sometimes as low as zero percent—can be tough to beat.Time Your PurchaseDealers run on a month-to-month basis. At the end of the month, many will accept lower offers to reach theirgoals and qualify for manufacturer bonuses. If you’re not picky about having the latest and greatest, the endof a model year is a great time to get good deals on remaining inventory. And December—particularly thelast week before the new year—is a slow time for car sales, so if you can hack some time out of your holiday-shopping schedule, it’s a wise time to buy.
  3. 3. Also, most dealerships are busier on weekends. The weekdays are generally slow, especially in the morning. If you come into the dealership on a midweek morning when business is slow, the salespeople are more likely to make a good deal as well. They need sales and they want to look busy, which keeps them motivated to give you a better deal and earn your business. Do Not Buy a Car on Your First Visit Use the first visit to look at and test-drive the car(s) you are interested in. Gather your information and then leave, and be adamant that you will not be buying a car today. This will communicate to the dealer that you are not going to be bullied. Watch what you say to the salespeople—especially if they ask you how much you are prepared to pay monthly—because whatever you say will be used as a starting point from which the dealer will go up when negotiations eventually start. Get Internet Quotes from Several Dealers CARandDRIVER.com offers free online pricing quotes from your local dealers. Get quotes from multiple dealers before you ever visit any of them. If dealers know they are being pitted against other stores, it will be easier for you to get their best offer right off the bat, and waltzing into a dealership with a first offer already in hand gives you an advantage in negotiations. Make an Appointment with the Sales Manager Once your research is done and you are ready to head to the dealership to purchase a new car, call ahead and make an appointment. By calling a sales manager to make your appointment, you communicate that you are serious about this transaction and know what you are doing. You will still be paired with a salesman when you arrive, but your chances improve of getting a straight shooter who knows you won’t be easy fodder. There is no guarantee you will get a good deal on a new-car purchase, nor is there a set price to negotiate toward with any car; pricing always varies with content, age, supply, and demand. But following these rules will start you in the right direction to get the best deal possible on your new car. Brian Munroe is the author of Car Buying Revealed. You can find out about Munroe and his book at his website, www.CarBuyingRevealed.com.Eight questions to ask when buying a new carA few tips to ensure you get the best deal on a new car.February 10, 2011, by Liz MetcalfeGiven cash-back incentives that can run $1,000 to $3,000 (depending on the car) and hiddenrebates you can ask for, right now some new cars can be as good a deal as a gently usedrecent model.This is a good time of year—and a great year—to buy a new car. Dealers like to get rid of inventory and boost theirsales numbers at the end of the year. And the recession tightened so many purse strings that manufacturers areoffering incentives that are making 2010 a banner year for sales.
  4. 4. According to a Scotia Economics report released in September, sales of both new and used vehicles in Canada areexpected to reach an annual high of 4.4 million by the end of the year. Sales of new cars and trucks were up 8percent in the first eight months, almost erasing a 9-percent drop during the economic crisis of 2009. Given cash-back incentives that can run $1,000 to $3,000 (depending on the car) and hidden rebates you can ask for, right nowsome new cars can be as good a deal as a gently used recent model.To take advantage, here‘s what to ask when buying a new car. Knowing ahead of time what the answers are will helpyou get the best deal, so do any homework described before heading out for your test drive.1. Can I see the dealer’s invoice? Negotiating up from the factory price will get you a better deal than negotiatingdown from the manufacturer‘s suggested retail price (MSRP), notes Alayne Crawford, manager of public affairs forthe Canadian Automobile Association. With the help of the Internet, an intrepid shopper can now hunt that numberdown, so some dealers will answer this question, she said. They might hedge, though, so come prepared.2. What factory-to-consumer incentives are available on this car? These are rebates offered by the manufacturerdirectly to the consumer, and may be posted on the manufacturer‘s website. You might save time by having a lookat Car Cost Canada. It tracks incentives by manufacturer and province and includes incentives available for certainmemberships such as Costco. They don‘t guarantee all incentives listed are current, though, since registeredmembers of the site can post incentives they‘ve found. Note: factory-to-consumer cash incentives are applied aftertax.3. What factory-to-dealer incentives did the dealer get? Also called trading dollars, invoice credits, marketingcredits, factory cash, dealer cash or dealer bonuses, these are hidden rebates manufacturers give to dealers andmany dealers will factor them in when negotiating with you in order to sell the car. So, it doesn‘t hurt to ask how muchthey are. There‘s no guarantee they‘ll get passed to you, but you can‘t get if you don‘t ask.4. Is there a delivery allowance for this car? There have been cash delivery allowances as large $11,000 for somevehicles. If the salesperson mentions another car with a delivery allowance that big, don‘t let that warp yourjudgement: the biggest allowances are on cars with a sticker price four times the size of the allowance. But it‘s worthasking whether one is available for the car you want to buy.5. What kind of financing can you offer me? ―There are always stars (telling to you read the fine print) after ‗zeropercent financing‘ for a reason,‖ said Crawford, the CAA‘s spokesperson. Unless your credit record is stellar (you gota copy of your credit report before starting to shop, right?), you may not qualify and be offered a rate from the dealer‘sfinance officer. Be prepared to counter that. You found out what rate your bank would give you before heading to thedealer, too, right? Salespeople may ask how much you can afford to pay each month, and tailor the length of the loanterm to fit. This will cost a LOT more in interest, so, don‘t answer that question. Instead, ask what their annualpercentage rate (APR) is, because that‘s how much you‘ll pay in interest over a year and how much interest you‘ll payin five years (news flash: you can‘t afford the car if you can‘t pay for it in five years).6. Can I get zero percent (or special rate) financing and other rebates? Dealers offering discounts and zeropercent financing may be able to offer one or the other, but not both. But ask. You may hit the golden combo.
  5. 5. 7. Are there any fees beyond the price we’ve agreed upon for the car? Ask for an itemized list. The ―dealer fee‖or dealer documentation fee‖ varies widely and pays for overhead so it‘s usually not negotiable. Ask for dealer prepfees, market adjustment fees and destination fees (not to be confused with freight charges) to be waived. Questionfreight charges: Lemon-Aid author and consumer advocate Phil Edmonston calls them charges ―pure profit.‖Ostensibly the cost of getting your car from the manufacturer to the dealer, freight charges rarely reflect the real costof that transport. While it‘s doubtful you can freight charges dropped altogether, ask if you can be met half-way on it.8. What will you give me as trade-in on my car? Save this for last. If asked whether you want to trade in your carearlier in the game, indicate that you have other plans for it. Which you should – you‘ll get a lot more for it if you sell ityourself privately. But even if you don‘t want the hassle of selling it, find out what it‘s going for on kijiji, craigslistand AutoTrader. That will come in handy when you inquire at the end of your negotiation, out of curiosity, what thedealer would give you for it.Note: It pays to know what you can afford before you shop. Narrow down your choices by finding the MSRP for thecars you‘re considering here on Sympatico Autos, along with their fuel consumption. Write that down in a notepad,along with insurance quotes from your insurer and the breakdown of monthly payments you got from your bank. Onceyou chase down the factory price and incentives, take that notepad to the dealer. It contains everything you need tonegotiate.Tip: if you want to save yourself time and don‘t mind investing $40, you can get a report on the factory price for fivecars (and on all factory-installed option combinations) from CarCostCanada.com. It will include a list of consumerincentives.Last: Never sign a contract the same day you look at the car. Ask to take it home (along with the financing details),so you can go through all the fine print at your leisure. If the deal still looks good in the morning, go for it!We all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buyinga car is a big investment but it can be rewarding too if proper homework is done.Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundworkand must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on thedecision.Dont buy a car with a preconceived notion: Dont buy car in a huff. Before buying a car gather all the relevantinformation such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads ofreliable information available you should first go for a virtual car shopping. This will help you in taking an informedbuying decision.Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trapand go for buying a car with an open mind after considering all the pros and cons of the car.
  6. 6. Decide your priorities: Different cars come with different plus points. Some have great pick up, some give highmileage, some have additional safety features, some are economical to maintain and so on. Before buying any caryou should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage.Also keep other factors in your mind such as the size of your family and the seating capacity of the car.Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximumlimit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what isthe maximum EMI that you can afford on your present income. Buying a car also involves hidden costs likeinsurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income whiledeciding on the amount of EMI.Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As comparedto petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the needfor gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations andnoise under acceleration.On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines.Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine.Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.So give a considered thought to all these factors before deciding to buy a petrol or diesel car.Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options beforeyou. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money tobuy a new car. Both the options have their pros and cons.You may receive a higher price if you go for private sale but it would require additional work as you will have to do thepaperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all therequisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer wouldalso keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car isin rough condition you should opt for trade-in.Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop aroundbefore entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quitepossible that some dealers may have a special offer on the model you desire.If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that onlythen go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, sothat they can factor it into the deal, hence try to keep it out of the equation as long as you can.Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you arecomfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not tooheavy et al.Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal formsshould be filled in completely and submitted to the right authorities. You have to register the car with the RegionalTransport Office. Following documents are required to be submitted to the RTO: Application for new car registration or Form 20 Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address. Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt
  7. 7. Pollution Under Control Certificate from the manufacturer or Form No 22 Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34 Your PAN number Imprint of your cars Chassis NumberWe all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buyinga car is a big investment but it can be rewarding too if proper homework is done.Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundworkand must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on thedecision.Dont buy a car with a preconceived notion: Dont buy car in a huff. Before buying a car gather all the relevantinformation such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads ofreliable information available you should first go for a virtual car shopping. This will help you in taking an informedbuying decision.Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trapand go for buying a car with an open mind after considering all the pros and cons of the car.Decide your priorities: Different cars come with different plus points. Some have great pick up, some give highmileage, some have additional safety features, some are economical to maintain and so on. Before buying any caryou should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage.Also keep other factors in your mind such as the size of your family and the seating capacity of the car.Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximumlimit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what isthe maximum EMI that you can afford on your present income. Buying a car also involves hidden costs likeinsurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income whiledeciding on the amount of EMI.Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As comparedto petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the needfor gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations andnoise under acceleration.On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines.Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine.Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.So give a considered thought to all these factors before deciding to buy a petrol or diesel car.Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options beforeyou. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money to
  8. 8. buy a new car. Both the options have their pros and cons.You may receive a higher price if you go for private sale but it would require additional work as you will have to do thepaperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all therequisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer wouldalso keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car isin rough condition you should opt for trade-in.Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop aroundbefore entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quitepossible that some dealers may have a special offer on the model you desire.If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that onlythen go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, sothat they can factor it into the deal, hence try to keep it out of the equation as long as you can.Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you arecomfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not tooheavy et al.Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal formsshould be filled in completely and submitted to the right authorities. You have to register the car with the RegionalTransport Office. Following documents are required to be submitted to the RTO: Application for new car registration or Form 20 Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address. Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt Pollution Under Control Certificate from the manufacturer or Form No 22 Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34 Your PAN number Imprint of your cars Chassis NumberWe all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buyinga car is a big investment but it can be rewarding too if proper homework is done.Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundworkand must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on thedecision.Dont buy a car with a preconceived notion: Dont buy car in a huff. Before buying a car gather all the relevantinformation such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads ofreliable information available you should first go for a virtual car shopping. This will help you in taking an informedbuying decision.
  9. 9. Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trapand go for buying a car with an open mind after considering all the pros and cons of the car.Decide your priorities: Different cars come with different plus points. Some have great pick up, some give highmileage, some have additional safety features, some are economical to maintain and so on. Before buying any caryou should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage.Also keep other factors in your mind such as the size of your family and the seating capacity of the car.Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximumlimit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what isthe maximum EMI that you can afford on your present income. Buying a car also involves hidden costs likeinsurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income whiledeciding on the amount of EMI.Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As comparedto petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the needfor gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations andnoise under acceleration.On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines.Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine.Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.So give a considered thought to all these factors before deciding to buy a petrol or diesel car.Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options beforeyou. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money tobuy a new car. Both the options have their pros and cons.You may receive a higher price if you go for private sale but it would require additional work as you will have to do thepaperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all therequisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer wouldalso keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car isin rough condition you should opt for trade-in.Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop aroundbefore entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quitepossible that some dealers may have a special offer on the model you desire.If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that onlythen go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, sothat they can factor it into the deal, hence try to keep it out of the equation as long as you can.Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you arecomfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not tooheavy et al.Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal formsshould be filled in completely and submitted to the right authorities. You have to register the car with the RegionalTransport Office. Following documents are required to be submitted to the RTO: Application for new car registration or Form 20
  10. 10. Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address. Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt Pollution Under Control Certificate from the manufacturer or Form No 22 Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34 Your PAN number Imprint of your cars Chassis NumberWe all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buyinga car is a big investment but it can be rewarding too if proper homework is done.Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundworkand must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on thedecision.Dont buy a car with a preconceived notion: Dont buy car in a huff. Before buying a car gather all the relevantinformation such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads ofreliable information available you should first go for a virtual car shopping. This will help you in taking an informedbuying decision.Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trapand go for buying a car with an open mind after considering all the pros and cons of the car.Decide your priorities: Different cars come with different plus points. Some have great pick up, some give highmileage, some have additional safety features, some are economical to maintain and so on. Before buying any caryou should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage.Also keep other factors in your mind such as the size of your family and the seating capacity of the car.Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximumlimit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what isthe maximum EMI that you can afford on your present income. Buying a car also involves hidden costs likeinsurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income whiledeciding on the amount of EMI.Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As comparedto petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the needfor gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations andnoise under acceleration.On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines.Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine.Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.So give a considered thought to all these factors before deciding to buy a petrol or diesel car.
  11. 11. Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options beforeyou. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money tobuy a new car. Both the options have their pros and cons.You may receive a higher price if you go for private sale but it would require additional work as you will have to do thepaperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all therequisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer wouldalso keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car isin rough condition you should opt for trade-in.Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop aroundbefore entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quitepossible that some dealers may have a special offer on the model you desire.If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that onlythen go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, sothat they can factor it into the deal, hence try to keep it out of the equation as long as you can.Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you arecomfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not tooheavy et al.Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal formsshould be filled in completely and submitted to the right authorities. You have to register the car with the RegionalTransport Office. Following documents are required to be submitted to the RTO: Application for new car registration or Form 20 Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address. Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt Pollution Under Control Certificate from the manufacturer or Form No 22 Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34 Your PAN number Imprint of your cars Chassis NumberWe all dream to own a car someday. Now that you have decided to buy a new car, naturally you are excited. Buyinga car is a big investment but it can be rewarding too if proper homework is done.Your endeavor should be to get a fair deal-right car at right price. To ensure this you must do thorough groundworkand must be crystal clear about certain things in your mind. Our car buying tips will facilitate you to reach on thedecision.Dont buy a car with a preconceived notion: Dont buy car in a huff. Before buying a car gather all the relevantinformation such as technical specifications, mileage etc. from various sources-Internet and/or dealers. With loads ofreliable information available you should first go for a virtual car shopping. This will help you in taking an informedbuying decision.
  12. 12. Many people go for buying a car with a preconceived notion for or against a particular car. Avoid falling into this trapand go for buying a car with an open mind after considering all the pros and cons of the car.Decide your priorities: Different cars come with different plus points. Some have great pick up, some give highmileage, some have additional safety features, some are economical to maintain and so on. Before buying any caryou should be very clear about your priorities regarding the car i.e. whether you want great pick up or high mileage.Also keep other factors in your mind such as the size of your family and the seating capacity of the car.Decide your budget: The foremost factor in deciding which car you buy is your budget. Decide what is the maximumlimit that you can afford to spend on buying a car. If you are buying a car by availing a car loan then decide what isthe maximum EMI that you can afford on your present income. Buying a car also involves hidden costs likeinsurance, registration, fuel and maintenance. So also factor in these expenditure in your monthly income whiledeciding on the amount of EMI.Petrol car v/s Diesel car: Both petrol and diesel cars have their own advantages and disadvantages. As comparedto petrol engines, diesel engines are more economical; and have better pull in the gears thereby reducing the needfor gear changing. But diesel engines have slower pick up; high maintenance cost; and result in extra vibrations andnoise under acceleration.On the other hand petrol engines are quieter, have greater pick up and cheaper to service than diesel engines.Recent advances in technology have enabled diesel and petrol engines to overcome most of their drawbacks. Turbo-diesel, modern direct injection, and common rail systems have greatly enhanced the performance of diesel engine.Petrol engine technology too has made impressive advancements with improvements in torque, bhp and mileage.So give a considered thought to all these factors before deciding to buy a petrol or diesel car.Trade-in v/s private sale of old car: If you are buying your new car in lieu of old car, there are two options beforeyou. Either you can trade-in your old car for a new car or you can sell your old car on your own and use that money tobuy a new car. Both the options have their pros and cons.You may receive a higher price if you go for private sale but it would require additional work as you will have to do thepaperwork and title transfers on your own. On the other hand trade-ins are easy because the dealers do all therequisite paperwork but it would fetch you 10-20 percent less price than if you were to sell it privately as dealer wouldalso keep his cut. Generally speaking if your car is in good condition it is better to go for private sale and if your car isin rough condition you should opt for trade-in.Negotiate the price: Once you have zeroed on the car you want to buy, it is time to negotiate the price. Shop aroundbefore entering final negotiations. Carry out a survey of different dealers to see if you can get a better price. It is quitepossible that some dealers may have a special offer on the model you desire.If you are going for a trade-in always negotiate the on-the-road price of the car first. Once you have settled that onlythen go for discussing the possibility of trading in your old car. Salesmen will always ask about the trade-in first, sothat they can factor it into the deal, hence try to keep it out of the equation as long as you can.Take a test drive: Before finalizing the deal always take a test drive to get the feel of the car. Make sure that you arecomfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not tooheavy et al.Finalising the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal formsshould be filled in completely and submitted to the right authorities. You have to register the car with the RegionalTransport Office. Following documents are required to be submitted to the RTO:
  13. 13. Application for new car registration or Form 20Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address.Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi ReceiptPollution Under Control Certificate from the manufacturer or Form No 22Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO askingthem to endorse their lien on your car registration certificate book or Form No 34Your PAN numberImprint of your cars Chassis Number
  14. 14. Report typ
  15. 15. Report typ

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