Do’s and Don’ts After Purchasing a New Car: Protecting Your Wallet
Buying a new car can be an emotionally and financially rewarding experience. However, it is all too common for people to overlook certain details during this process, sometimes resulting in unexpected extra costs. This article provides a comprehensive guide to help you navigate the complexities of buying a new car, focusing on strategies for protecting your wallet from common dealer tactics.
The Excitement of New Car Ownership
The joy of welcoming a new car into your life is undeniable. It can be a symbol of hard work and success. Nevertheless, it is crucial to approach the purchase with a clear mind and awareness of the financial aspects involved. Car dealers often employ various strategies to add costs that can be quite significant, ranging from hundreds to thousands, potentially even climbing to lakhs.
Avoiding Extra Costs: Identifying Hidden Charges
The key to successful car shopping lies in understanding what the ‘On Road Price’ (ORP) encompasses and beware of dealers adding non-essential charges under fancy names like 'convenience fee,' 'transportation fees,' 'handling charges,' and more. Below is a breakdown of the components that make up the ORP:
On Road Price (ORP) Equation:
ORP Ex-Showroom Price RTA Taxes Registration Fee (by government) Insurance
Important to note, the calculation can vary from state to state. For accurate charges, refer to the respective state transport website.
Strategic Negotiation and Understanding Extra Fees
Negotiate Early and Often:
Dealers often offer cash discounts of around 10% on the ex-showroom price. They may inflate insurance premiums initially, then later offer it as a discount. Ensure you keep a close eye on the insurance quotes and compare them with online portals like PolicyBazaar for a better deal.
Market Competitors:
Don’t hesitate to mention your interest in competitors’ models. For instance, if looking at the Tata Tiago, inquire about the pricing and deals for models like the Hyundai Grand i10 or the Maruti Suzuki Nios. Car dealers may offer you the best deal out of fear of losing a potential customer.
Beyond Booking Amount:
When making a booking payment (~11k) do not fall for promises of free accessories. Ensure that all promises are put into a written agreement. Pay the full amount or disburse the loan only after the Pre-Delivery Inspection (PDI).
Proactive Measures to Stay Informed
Insist on Written Promises:
Once the booking amount is paid, avoid getting into verbal agreements. Ensure that any promises of freebies or additional benefits are documented in writing. For instance, salesman may verbally offer a steering cover or mats, but insist on getting this in a written form.
Verify Insurance Quotes:
Always verify the insurance quotes from online portals or directly from insurers. This helps in making an informed decision and securing the best possible deal.
Partial Payment and Going Forward:
Wait to pay the full amount or disburse the loan until after the Pre-Delivery Inspection (PDI). This is a crucial stage where the car undergoes a final check, and any issues can be addressed before the purchase is finalized.
Conclusion
Following these guidelines will help you navigate the complex world of car dealerships and protect your wallet from unnecessary extra charges. Remember, the key to a successful car purchase is to approach the process with knowledge and caution. Happy car shopping!
Recommended Links
How to Negotiate Your Car’s Price
Top Online Portals for Insurance Quotes
Guide to Pre-Delivery Inspection (PDI)
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