Thursday, August 28, 2014

Don't Make Mistakes When You Buying a Car..

Now a days the most people, a car is a necessity. We often depend on our vehicles to get us to and from work every day, transport children to events, and even for pleasure. Because they are such an important aspect of your life, you want a vehicle that is reliable, comfortable, and maybe even a bit stylish. The vehicle choices are almost endless, so finding the right combination of wants and needs with an affordable price tag can be challenging.
Here are the 5 biggest mistakes you should avoid when purchasing your next vehicle:
  1. Thinking in terms of monthly payment. Not very many people walk into a car dealership and plan on writing a check or paying cash for their vehicle, and the salespeople know this. That is why the negotiation almost always revolves around how much you can afford to pay for the car each month. This is the easiest way to spend too much on your next vehicle.
  2. When negotiating a price, the dealer can do a number of things to make almost any vehicle fit your budget. They can do this by adjusting interest the interest rate, offer you a longer term on the loan, or restructure the financing in a way that creates a payment that fits in your budget.
    It may not seem like a big deal, but even a few extra percentage points or an additional year on the loan can add thousands of dollars to the total cost of the vehicle.
  3. Buying new versus used. A vehicle is not an investment. Vehicles depreciate in value quickly, so when you buy a new vehicle, you can expect it to continuously decrease in value. In fact, a new car typically decreases in value by 25%-40% in the first two years. The best thing you can do is to let someone else take the initial 40% hit and buy a slightly used vehicle that is a year or two old.
    Years ago, there was a good reason to buy new, and that was for the warranty. Today, most vehicles have longer warranties that can still be in effect even if you buy a car that is a few years old. In addition, you can often opt to purchase an extended warranty which is typically far cheaper than the value the car lost in the first year or two.
  4. Choosing the wrong vehicle. Are you are single person who needs a vehicle just to get you to and from work every day? Then you probably don’t need that Rs 4,50,000 SUV that seats eight and can tow Rs 5,00,000. You want a vehicle that meets your specific needs. Sure, there are a lot of cars and trucks out there that will turn heads, but keep in mind that this will come at a premium.
  5. Not taking into consideration other costs. The actual cost of the vehicle is important, but what is often overlooked are all of the hidden long-term maintenance and insurance costs that go along with a vehicle. Keep in mind that car insurance premiums typically increase with the value of a vehicle, so buying a more expensive vehicle will increase your annual insurance costs. This can amount to ten thousands, if not a ten  thousand  or more per year.
    In addition to insurance, you have to take into account all of the maintenance costs. Vehicles need oil changes, new brakes, air filters, tires, and much more. Luxury or performance models are generally going to require higher end replacement parts that can cost much more than their standard counterpart.
    Finally, you need to consider gas consumption. The average person will drive between 10,000 and 15,000 miles per year. A vehicle that gets an average of 30 miles per gallon with today’s gas prices, you can expect to spend between Rs 10,000 and Rs 15,000 per year on gas alone. Now, consider a vehicle that only gets about 20 kilometer per liter. Now you’re spending Rs 20,000 and Rs 30,000 each year.
    When you think about it, by the time you factor in gas, oil changes, insurance and regular maintenance, you can expect to spend 10,000 to 50,000 in addition to your monthly car payment each year!
Putting Rs 0 down. There are a lot of incentives when it comes to buying a car, and you can often put yourself in a brand new vehicle of your choice with no money down. Sounds great, right? Not so fast. Remember, vehicles depreciate rapidly, so if you finance the full purchase price, you often find yourself upside down on the loan immediately.

Being upside down simply means that you owe more than the car is worth. Remember, there are taxes and other fees that go into a new car purchase, and they are typically rolled into the loan if you don’t put anything down. That means as soon as you drive it off the lot, you owe more money to the bank or dealership than the vehicle is actually worth.

This is a very bad idea if you intend on selling or trading the car in before the loan is paid off. If after three years you need to get a new vehicle and you owe Rs 1,00,000 while the car is only worth Rs 8,00,000, you will have to either pay Rs 2,00,000 out of your pocket, or finance that into your new loan. It may feel good to walk out of the dealership with a brand new car without having to fork over a dime up front, but it will cost you.

If you buy a Used a Old Car Following Tips to be Followed..

Used car market in India is growing rapidly with the growth of the new car market. At the present time, most car owners, particularly among young drivers drive a particular vehicle for about three minutes five years ago and then exchange their used car for a new car. This has not only given a boom on the new car market, but has also promoted the used car market in the country.
When it comes to buying a used car in India, there are many options open to buyers, both in terms of used cars and used car sellers. There are lots of used cars for sale in India and many traders that the best used cars available on a cost-effective price. If someone wants to buy used car in India, then there are certain things you should know which one to create a perfect pre-owned car.

Here are top tips to buy used car in India:
  • You must decide which car you want and what exactly the price you pay for it. The choice of car depends on your needs and requirements. If you have a family with two then a small car like Alto and Spark is best for you, but if you have a huge family of 7 or 8 people then as a MUV Toyota Innova is a good option for you. Analyze your needs before you update your used.
  • You have a market research on the used car you do decide to buy. You should be well aware of his market value, their resale value, and their reliability and their demand on the market.
  • You have to verify the source through which you can buy the used car market with ease need. There are higher chances fleeced when buying a used car and therefore you should be careful and select a source you can trust. You can use the Internet, where many Indian car portals provide a good opportunity to find to buy used car in India with a hassle free process.
  • You have a number of authorized dealers and personal recommendations. Many major brands such as Maruti, Toyota, Honda, Hyundai and have their used car sales, which guarantee you, car finance, car insurance, service and quality used cars. You can judge for them what the best option for you is.
  • You need if you are able, the entire payment shall be made or whether you think the drive for used car loan car. There are many companies, the financing so you need to check the rate they offer and choose the best for themselves. Once some of the best sources for used cars check they can have contact and a test drive of some of the selected car models. There are lots of used cars in India and you can not all obviously test drive. To select some of the models you wish to possess. During the test, and the review of the vehicle to check the entire history of the automobile and also assess the condition, mileage and performance. Never for the purchase of a modified car or drive had a car painted over.
  • Check all the documents of the car that you decide to buy. Check the RTO tax receipt, original registration certificate, insurance papers, original invoice and the service bills the car. Remember to mention not tally the chassis number of the car with the registration certification. This will help to check whether the car and the seller is binding. In the Indian car market there are opportunities to be deceived so cautious and not end up buying a stolen car. Most of the cars that are stolen in India is usually the odometer has been tampered with. It is a very common fault in the used car market. Check the date of the tire manufacturer and the service records to ensure that the odometer is not manipulated. If you do not know much about cars then you ask a mechanic to do. Have a trusted mechanic look at the car and check the general condition of the car. If you are satisfied with their working conditions and the condition of the car to finalize the deal with the seller.
  • Negotiate to your best, get the best offer and then fill out all paper work and legal formalities.

While searching for a suitable loan, you should also see that the bank or the company is not charging prepayment penalties or charges minimum amount. With no or less prepayment penalties, you have the advantage of getting rid of the loan early whenever you are able to do so or you can shift the existing car loan to another lender for the benefit of lowering the interest rate.

You should also be prepared to pay processing fee on the car loans. The fee varies from bank to bank and has to be paid up front. The lender will give you a loan amount minus the fee. So the fee will reduce the actual amount you receive in your hands.

It is crucial for the borrowers that they search for ideal car loans in India. Study various banks' rates and other terms-conditions, keeping your requirements and circumstances in mind to find a suitable deal.

Always Compare the Finance Companies and Banks For Best Deals in Car Loan Interest Rates.

Prepared & collection by : M.Ajmal Khan.

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