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Tata Capital > Blog > Loan for Vehicle > How to Buy a New Car in Just 10 Steps?

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How to Buy a New Car in Just 10 Steps?

How to Buy a New Car in Just 10 Steps?

A new car is on your mind. And you want to make a smart purchase. Buying a brand new car involves tons of decisions and questions to answer. But Mr. Sinha wasn’t too concerned about doing research before buying a car. He simply saw an advertisement, went to the showroom, believed in the salesman’s words, applied for a car loan and drove home a new car. Here started the real trouble for him. His car wasn’t giving even half of the mileage promised by the salesman, and within months of buying, it required a lot of maintenance. So, if you want to be on a safer side, here’s a checklist of ten points that can help you in buying the right car.

•  Know your Means

It becomes very important to narrow your search by deciding on a budget range. You know your household income the best. Calculate all spends and how much you are comfortable in paying as EMI every month, if opting for a car loan. Remember, a big car will come with an even bigger discount. Plan according to your necessities and income.

•  Pick the Right Car

Analyzing your needs before buying a car in India is very important. For example, you shouldn’t consider buying Innova or Safari when you are a family of two. You need to keep in mind your lifestyle when deciding on the car type and model. If you have children, you will need a spacious car and so on. Make your own checklist- the number of seats, number of doors, color, the size, performance, comfort, and storage (luggage) capacity.

•  Get Multiple Insurance Quotes

Another smart move before buying a car is getting insurance quotes from different vendors for the car model; you are interested in buying. This will help you know the value of that particular model.

•  Do some Internet Research

Read reviews about the model from people who have already bought it, talk to the experts and read about the price and performance. On the internet, you can even get an idea about the level of negotiation on the car price.

•  Search the Best Financing Option

As buying a car is a big investment, it is imperative that you may opt for a car loan. Check for a bank or financial institution that offers the lowest car loan interest rate and easy terms and conditions. Also, don’t forget to check out their hidden charges, if any.

•  Check Out the Local Dealers for the Best Price

You shouldn’t rush to the dealer that advertised your dream model in the newspaper. Instead, you must call up all the local dealers in your city and know about the best-offered price and then reach out to the one that quoted the lowest price. Remember, you can still negotiate on the price.

•  Test- drive the Car

Test driving the car before paying for it gives you the actual look and feel. You can find out how comfortable you are in driving that specific model. You will get to know about the details like driver seat’s position and engine responsiveness. You should take the car in real traffic or on the hills and the open road.

•  Ask Questions

Don’t forget to ask the dealer about the safety equipment like an air bag in the car, how well the car is equipped for emergence conditions, like an accident, quality, and availability of the spare parts, servicing rules, etc.  We understand that accident is something, you won’t like to talk about when you are buying a new car, but your life is more important than your luck.

• Read Carefully trough the Buyer’s Order

Don’t just blindly sign the deal and concentrate on the sweets, offered by the dealer. Read word by word, go through every minute detail, ask questions and then sign the deal.

•  Avoid Buying too many Extra Accessories

After you have taken the keys, the salesman will try to raise his incentive amount by showing you attractive and bright car accessories. Be smart, buy what is actually necessary.

Per Rishi Mehra, Co-founder,, “You should never buy accessories from the car dealer since the price at a dealer is often significantly higher. Buying it from a good accessory shop outside the car.”(source -

And once you are done with all, you are ready to drive home your dream car. Congratulations!