Buying a car
When you decide to buy a car the first question that comes to your mind is: Should you buy a new car or a used car? New cars may be a big burden on your budget - but you can expect them to run trouble-free for atleast 5-7 years. On the other hand, although used cars cost less you always have your doubts. The following sections help you decide which car buying option (new car or an used car) is the best one for you.
Buying a New Car
Every Indian dreams of owning a car. In the 1980's purchasing a new car meant you had to stand in a queue to buy a Fiat or a Maruti 800. Today, things are very much different. Today you have a good choice of cars to choose from - Maruti 800, Santro and Indica among others. The Indian auto industry is flooded with new car makers and the every increasing list of new car models. Moreover, today finance for new cars is easily available than ever before. If you are going to buy a new car then here is our step-by-step approach to buying a new car:
Step 1: - Determine your budget
a) How much can you spend on a car?
b) How much can you pay as down payment?
c) How much can you afford to pay per month?
You should also take into account other factors such as the cost of fuel, license, registration and insurance.
Step 2: - selecting a car
Next, compile information on the cars you are interested in. Go ahead and make a chart comparing standard equipment (engine size, horsepower, number of cylinders, curb weight), total price, gas mileage, colours, etc.
Next, compare the cars and prepare a list a 2-3 cars that really interest you. We suggest you compare the cars using the following as a guide:
Price
Choose cars that fit your budget. There is no point wasting time comparing vehicles you cannot afford.
Space
If you have a large family and need more seating capacity and luggage space go in for a car that provides it. On the other hand, if you need a car only for the purpose of commuting to work you can go in for a small car that saves you a few thousand rupees.
Petrol / Diesel
The choice between petrol and diesel is again an important one. With the price of diesel around 75% that of petrol, the diesel options look attractive. Diesel vehicles are however expensive to maintain even though now the technology used for diesel cars is far better then what it used to be.
Cost of Spares
This is one of the most important aspects for buying a new car. Here you should look at the cost of maintenance and easy availability of spare parts.
Resale Value The last but not the least is the resale value you are going to get if and when you decide to sell your car after a period of time.
Step 3: - choosing cars at CarTradeIndia.com
Simply visit the website CarTradeIndia.com. On this website you can easily make a comparison between all cars of your choice. You can easily compare all extra features on cars and the prices of cars. Shopping through CarTradeIndia.com saves you a lot of time because you can easily choose the car that best suits your preferences from behind your computer instead of visiting all different dealers!
Step 4: - Make Payment Now its time to make the payment. If you need a loan you can simply contact the companies who offer loans at CarTradeIndia.com Those companies have lots of experience with car loans and are happy to assist you. Next, make the payment, register your car with RTO (Regional Transport Authority) and get an auto insurance (also offered at CarTradeIndia.com) for your new car. Congratulations! You are now the proud owner of a brand new car.
Buying an Used Car
The Indian auto market is flooded with used cars. Buying a used car is a difficult task - used cars cost less but you always have your doubts. We suggest you use the following as a guide when purchasing an used car:
Step 1: - External Car Inspection
This will give you an idea about the condition and maintenance of the car. Take your time (it doesn't cost a rupee) and inspect the car from all possible angles to check the following:
Car Balance
The car shouldn't sag or lean in any direction. Scan the car from a distance of say 15-20 feet to get an idea.
Shock absorbers
Press hard on a corner of the car and release your grip. If the car keeps rocking up and down, the shockers need replacement.
Tyres
If worn out unevenly, it could be due to under inflation or poor wheel alignment. It could also indicate that shocks, struts, or a part in the suspension system needs to be replaced. Check the condition of the spare tyre as well.
Doors
Look for a close fit and ease of opening and closing. A door that needs to be slammed shut or yanked open indicates that the car was involved in a collision. Slide the windows up and down to check that they operate properly. Check levers such as glass window winder, door opener and safety lock.
Windshield
Check for cracks in the windshield and the window glass.
Trunk
Is the trunk voluminous enough? Check for any rust at the bottom of the trunk and whether it contains a good spare tyre and a jack.
Body
A good scan of the body can reveal past accidents and future rust sites. Check the bottoms of fenders, around lights and bumpers, on splash panels, under doors, in the wheel wells, and under trunk carpeting. Small blisters indicate future rust sites. Also check for paint that does not quite match, gritty surfaces, and paint oversprays. These are signs of a new paint job/ masking body problems. Cracks, large dents, and loose bumpers are warning signs of a past accident.
Bonnet
Check the bonnet's fastening bolts. If bonnet has been readjusted from its original position it's been through an accident.
Paint
This is very important! It is difficult to paint some replaced or damaged part (fender, door, hood, etc.) in exactly the same colour as the rest of the car.
Step-2: - Internal Inspection
Having gone through the exterior of the vehicle, its time to turn the magnifying lens on the interiors of the car. Just like the innards of any animal have a tale to tell about its health, so does a car's interiors.
Odometer
A car with low mileage, but with a lot of wear on the driver's seat or on the brake and accelerator pedal, may indicate tampering with the odometer. A musty smell inside could indicate seepage of rain water through cracks into the car.
Lights and mechanical parts
Make sure all headlights, tail lights, brake lights, back-up lights, and direction signals work properly. Test the radio, heater, air-conditioner, and windshield wipers.
Cabin
Look if the upholstery has gone through major wear and tear. Examine and fasten the seat belts and make sure they are comfortable and snug. Make sure the seat is comfortable and that adjusts to your needs.
Cooling system
Unbolt the radiator cap and peek inside. The coolant level should be almost full and there should be no oil or foreign material floating inside. The coolant should be clear light green, but do not panic if it is a little cloudy — it may just need to be replaced.
Oil pressure
Check oil pressure on a cold engine. Now start the engine and look at the low oil pressure warning lamp or oil pressure gauge on the instrument panel. The longer the time between the engine start and oil pressure indication (ideal time is 1-2 second), the worse the condition of the engine.
Oil level and leaks
A "min." oil level sign on the dipstick, could mean that that the engine consumes more oil than required. Drain some oil from the sump and rub it against your fingers. The presence of any gritty metallic substance points toward the erosion of moving engine parts. Check for leaks and stains under the car, on the underside of the engine and on the engine head. The more the leaks, the worse the engine.
Air filter Remove the air filter cover and look inside. If you notice the presence of heavy dirt, chances are that the previous driver cared little about maintenance.
Instrument panel Warning lights such as those indicating low oil pressure, low oil level, overheating, should go off after the engine has been started.
Rubber beading Look for any cracks in the rubber beading close to the windshield, outside of glass windows, inside trims and along the roof linings.
Step 3: - Test Drive Inspection
After the internal and external inspection, take a test drive of the vehicle and watch out for the following:
Engine and smoke
Check the exhaust smoke. Strong black smoke means the engine is flooded with petrol because of a fuel system defect or faulty spark plugs. Blue or white-blue smoke means burning of oil because of internal engine defects like broken pistons or piston rings. White smoke (steam) means that the coolant has penetrated the cylinders. It could also mean some gasket defect.
Suspension Drive and Noise
After the car has warmed up, listen for engine noise as you drive. Unusual sounds may be the signs of major trouble. Drive over rough road surfaces, watch for unusual vibrations, noises or odours. Make several stops and starts, at varying, but safe, rates of speed on a clear, level road surface.
On-road performance
The car should accelerate smoothly and should brake without grabbing, vibrating, or pulling to one side. When you step firmly on the brake pedal, it should feel firm, not spongy. Try turning at various speeds. Too much sway or stiffness can mean bad shockers and/or front--rear problems. Turn the wheel all the way from one side to the other; power steering should feel smooth, with little or no squealing. In case of worn-out wheel bearings, you can hear a humming sound which betrays this defect. Also, the noise of the distorted steering bushings will cause excessive steering column vibration.
Step 4: - Paper Work Inspection
Once you have carried out the intensive inspection to your satisfaction, check whether the papers of the vehicle are in order. A good buy may be fraught with danger if the papers aren't up to the mark. All the required legal documents such as Registration Certificate (RC Book), Insurance Certificate, Pollution Under Control (PUC) Certificate and Service Book must be in order. The one-time RTO (road tax) tax should have been paid and get the papers changed to your name.
Registration certificate
The name of the state should be mentioned in the registration paper. This RC book contains information about the engine number, chassis number, manufacturing dateand the like. You can also know from this document whether the car is a cancelled taxi or not.
Insurance certificate
Check whether the car is covered under third party insurance or comprehensive insurance. The premium should have been paid at regular intervals. Get the insurance certificate transferred in your name before the purchase of the car.
Informing the authority
You should inform the RTO or the insurance company all the details about the car such as its registration number, engine and chassis numbers as well as the name and address of its previous owner to ascertain whether the car was stolen or involved in any illegal activity.
Finalising the deal
Get a second opinion by bringing along a mechanic or a technician whom you trust. A used car may have major mechanical or structural problems. Replacements of important parts may be costly and hard to find. The seller/dealer may misrepresent the car's mileage or condition; and warranty coverage may not be available. After completing these formalities, comes the toughest part of negotiating the price. Never let yourself be pressurized into a deal. Many sellers - especially dealers - will try to convince you that the car you are looking at is the "ideal car". But more than this, you should be sure that the car is worth the asking price. If you are firm on your decision, chances are that you will win the negotiation battle.
When To Buy A Car
It does matter in which month of the year you buy a car. If bought before March, you get a 10% depreciation benefit. But if bought before September you can claim 20%. The depreciation can be claimed on the ex-showroom price of the car and not on the on-road price. This would mean that insurance and taxes would not be taken into account. Apart from depreciation, buying at the beginning of the year is better. A car bought in Dec ’98 is less valuable in the second hand market than another bought in Jan ’99 ("1998 model vis a vis 1999") .