Tips to save money while buying a new car

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There’s much more to buying a new car than going to the dealership and making a payment. Apart from haggling with the dealer for the odd discount, there are dozens of ways to save money while buying a new car. Follow these guidelines and you’d be able to save thousands of rupees on your new car

1.    Choose an authorized dealer

An unauthorized dealer may be offering you a good discount, but you would never know if he has replaced the genuine components with spurious ones and made a killing in the process. Such practices are not uncommon in the market. To start with, make sure that you buy your car from an authorized company outlet.

2.    Buy at the right time

If you are not overly worried about depreciation, December is a great time to buy a car. Most car companies offer you discounts which you would never get during the rest of the year. Apart from year end, months when car sales take a hit, like the month with Shraadhs offer great opportunity to get added discount for companies and for those who are not superstitious.
3.    Bargain hard for final price

Before you try getting any other discounts or free accessories, you should haggle hard with your dealer for the least on-the-road price of the car. Mind that this need not include the insurance. Make sure that you have done your homework well, by finding out price for the car of your choice from multiple dealerships. Quote the least price you got, and then bargain some more.
4.    Don’t buy insurance from the dealer

Car dealerships get fat commissions for insurance companies. It’s not necessary that you buy your car insurance from them only. Call insurance agents from various companies, and buy an insurance which works out the cheapest for you. You can easily save anywhere from Rs 2 – 4 thousand by following this simple step. Buy insurance from the dealer only if he manages to match the price you are getting from outside

5.    Bargain hard for goodies

Once you are done bargaining for the car’s price, it’s time to bargain for free goodies such as accessories, film coating, anti-rust treatment, car cover and the like. Remember, you don’t have to be nice to the dealer. He gets a very good amount of money as his margin. You should try your best to minimize his cut to your advantage.
6.    Never pay anything till everything is decided

Don’t sign on the dotted line, and don’t hand that cheque to the dealer before every single detail of the deal has been finalized. Make sure that you get whatever the dealer is promising in the written form over a company letterhead before you make any payment. This will make sure that you could arm-twist him by threatening to buy the car from elsewhere if his terms are not very favorable.


7.    Exchange precaution

If you are exchanging you old car for a new one, don’t mention it to the dealer. Make sure that you finalize the price of the new car, and all the other details before you present your old car for a sale. This will save you the hassle of bargaining on two fronts at the same time.

8.    Go for extended warranties

Extended warranties are always a good deal. They may pinch slightly at the time of buying a new car, but they are always a better deal in the long run. Even the best cars can break down. Not having a warranty will make you pay a much higher price for repairs.
9.    Get your car accessories from the after market

Dealers make a lot of money on accessories. Accessory prices at dealers are much higher than the aftermarket. Make sure that you find out and compare the prices of the accessories you want to buy from the outside market, before getting it done from the dealer.

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