While buying a new car, haggling for the best possible deal is a sure shot way to save some money. But while some people think haggling is the only way to get a profitable deal, there is one more important thing which can help them, and it is timing.
There are certain times of the year when you’re likely to get heavy discounts or some extra equipment thrown in for free if you buy your vehicle during that time. So let’s have a look at such ‘times’ when you can get a good deal.
1.When you are financially prepared: Buying a car and servicing the EMIs can be quite taxing. For instance, consider you decide to purchase a car worth Rs 7 lakhs and make a down payment of Rs 3 lakhs. It means you can opt for a car loan of Rs 4 lakhs, at say an annual interest rate of 12% per annum and loan period of 4 years. The EMI amount may vary between Rs 7,000 and Rs 9,000/month. If you lower the down payment and increase tenure, the EMI will shoot up. For an average person, it is a substantial flow of money on a monthly basis, not to mention the initial down payment that also has to be paid. Therefore, it is necessary to be financially prepared before you consider buying a new car. Make sure that you are financially prepared to afford the EMIs.
2. During festival time: India is a country where every festival is celebrated with zeal and passion. Car manufacturers and dealers are not far behind when it comes to enjoying the festivities by offering lucrative discounts and offers during the festival season. For example, Diwali, Dhanteras, and Navratras are the time when most of the people buy cars. In addition to reducing the price of the car, car dealers also offer freebies and other exciting offers during the festive season. Like in 2015, Honda offered free first-year car insurance on its models Amaze, Brio and Mobilio. Similarly, Renault India offered Rs 45,000 discount on its 95PS variants and 110PS variants. Further, banks also offer a lower interest rate or waive off processing and other fees on car loans during the festival time. Hence, it is a good idea to buy a car during the festive season to get exciting offers.
3. When you want to change your old car: When you already have a car, and you want to change it due to some reasons, then it is a good idea to buy a new car. Many car dealers offer car exchange programme under which they take your old car and give discounts on the new car. It usually happens during lean season when there is a need to push inventory and increase sales. It means the time to buy a new car is when your old car becomes too old for you.
4. During month end: During the month end, dealers and salespeople are under pressure to accomplish their targets. They look for various ways to increase the sale of cars. As a result, they offer discounts and offers on certain car models and variants. It might be the reason why sales numbers are high towards the month end. However, it may not be true in all circumstances. If during a month, the demand for cars is high, dealers may not offer discounts during the month-end. Still, you can push your purchase decision to the end of the month.
5. During year end: Usually car companies offer big discounts in December to clear their car inventory before they launch new models in January. As a result, there is a probability that you find new cars at a reduced price. However, it is important to note that if you buy your vehicle during the year end, they will bear the registration date, of say, December 2016 and in a few days, it will become the last year’s model. The registration date will matter if you have a plan to change your car in 3 or 4 years. A 2016 model will fetch you a lower resale value three or four years down the line. Also, if you buy last year’s model, and the new version is substantially changed or updated with latest features, you won’t have the latest technology or design. In this situation, it will be prudent to wait until January to buy a new vehicle.But if you have a plan to keep the vehicle for the next seven or eight years, you can buy it during the year-end.
Your Next Step…
While you are ‘timing’ your entry in the car market to save some money, it is equally important to take some steps to keep your newly purchased car safe and secure. After all, if you will keep your vehicle secured, you might not need to buy a new car frequently, and you can save some money also. So here are some of the measures to be taken:
- Regularly service your car. A fire can erupt due to short-circuitand damage your vehicle. Also, there might be other perils which may damage your vehicle. Therefore, it is important to service your car regularly to find out any issue before it becomes an evident problem. However, make sure you service your car from authorized centres only
- As pressure in tyre affects the fuel efficiency, therefore, regularly get your car air pressure checked by the dealer
- Avoid parking your car in direct sunlight. Use a waterproof cover to protect your car from scratches and water
- Change wiper blades every year, especially before Monsoon
- Use magnetic sunshades to protect the interior of your car
- Buy car insurance to keep your every ride safe and secured. It is a valuable tool that can save your hard-earned money in case of loss or damage to your car due to any unwanted situation.
The Bottom Line
Of course, the right time to buy a car varies from person to person but buying a car at the right time can save you thousands of rupees. A car dealer will always try to pressurize you to buy quickly, but remember, it is your money, and so is your choice! By playing the market to your advantage with a little patience, you can get the car you want at the price you want.
Research, test-drive and be smart—and when the apt time comes, get exactly what you want. Good Luck!