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Buying a house and making it your home, was, is and will be the most important aspect of investment! Similarly, buying a car comes in luxury spending but is the probably the second biggest spend that a person does, in his lifetime!
Changing Scenarios in Automotive Industry
There was a time, we used to see Contessa, Ambassador, Mahindra Jeep, Premier Padmini and Maruti 800 in abundance, on the streets. Then came a wave of small cars and to break the momentum that Maruti 800 had created, Hyundai launched the Santro model, that was more robust and took the market by storm! Today, we are in a situation where every month, a car is launched (either facelift or Indian-version launch of a global model) by the biggies of the automotive industry in India.
Due to this continuous process of launch, relaunch, and facelift; the buyers are in a constant state of confusion! With the ever-increasing competition, automobile manufacturers, keep coming up with new, lucrative offers to lure the customers; thus, adding to the woes of the buyer.
Assuming we are clear about all the segments in which passenger cars are divided into, the search process lasts for more than two months unless and until the person is very particular and has a good database!
Today buying a car is not only about the social stature but also a necessity! With roads getting better and the economy improving, everyone wants to increase their living standard and to some extent buying a car justifies that!
Taking into consideration the aforementioned points, it is very imperative to say that with so many options available, a potential buyer may get confused. But there are certain characteristics which are very important to be checked before buying a car! Apart from budget, there are some key attributes to be kept in mind before buying!
Buying a Car on Loan?
With so many options in terms of different banks offering the loan, a prospective buyer must also be able to envisage how much loan amount can he afford and how much down payment he is able to pay. While buying a new car, one has many options whereas buying a used car gives fewer options. Usually, not many banks offer loan on old cars more than 6 years, hence it becomes very vital for the buyer to check out models which are not older than 6 years, in order to avail loan. Once, you have checked the details of the model, it is better to apply used car loan to check all documentation that is required, in order to acquire the loan.
Age of the Car
The most important part of buying a used car is the age of the car. Apart from the loan point, the other reason is if the car is too old, then it’s spares may not be available or would be available at very-high prices.
The size of the engine which is measured in liters. It certainly doesn’t mean how much capacity of fuel can the vehicle hold! In India, the options that are available start from 624cc that means 0.6 liters. The bigger the engine, higher will be power generated by the car. It is very important for a buyer to understand his requirement. If a simple correlation can be made, then smaller the engine size lower will be the price of the car.
Type of Fuel
In India, petrol, diesel and CNG are the known options of available fuel. Operating cost of a vehicle includes every incurred cost to run a car for a kilometer. As we are very much concerned on how many kilometers per liter will the car run (mileage), our choice should favor better mileage options! It is important to keep in mind that an equivalent engine size catering to diesel as a fuel, gives a better mileage but at the same time it is priced higher also.
ABS and Tyres
Another important point to consider while buying a used car is to get the brake shoe checked from your acquainted mechanic. Also, it is important to note if the said car has ABS (anti-lock braking system) or not! As a general thumb rule, Indian cars with in-built ABS are priced higher than the ones without them. On the other hand, tyres are also an important checklist point. A known fact is that a new set of tyres costs a lot. Before zeroing down on a particular used car, it is important to check the condition of the tyres.
Once you are fully satisfied about the condition of the car and the features inclusive in the said price, keep all the documents handy while applying for the used car loan.
Policies, Codes & Other Documents