5 minsMay 28, 2019
This year has already seen several exciting new car launches, with many more in the pipeline. If you are in the market to buy a new car, here are some factors you should consider before making your buying decision.
Also remember that Axis Bank offers New Car Loans at attractive interest rates and flexible tenure.
1. Consider your average usage
All of us would love to own that muscular looking SUV with off-roading capabilities. After all, who hasn’t dreamed – as they show in all those advertisements – of driving off
into the sunset over tough terrains with our significant other by the side!
While that is great as the stuff of dreams, when making a buying decision, be a little more practical. Ask yourself a simple question. Where are you going to drive your car most? Is it in the city or on dirt tracks? If the answer is a daily commute
to work, then do you really need that 4x4 powered SUV?
Of course, for most people, a car is not just about utility but also about self-expression, a way of showcasing your identity. That is perfectly understandable and if you want to spend a little more for this, that is fine too. But think about
issues like the cost of ownership, cost of operations and parking hassles, among other things, before you take the final decision.
2. Automatic or Manual?
Increasingly, cars with automatic transmission are becoming popular with Indians. Auto transmission cars are great if you drive yourself, have a long commute and often get stuck in traffic jams. However,
auto transmission variants cost more and give a lower mileage. Take all these factors into account before making a choice.
3. Petrol, diesel or CNG?
Generally speaking, petrol versions of cars are cheaper and peppier, though, of course, petrol is more expensive than diesel. As a result of this cost difference, the operating cost of a diesel car
may be lower. However, be aware that diesel variants, generally speaking, need higher maintenance.
CNG is eco-friendlier than either petrol or diesel, besides being cheaper than both. But you need to figure out if there are enough CNG outlets in your city. Otherwise fueling up could be a hassle.
4. Sell or Trade-in?
Auto dealers often offer to exchange your old vehicle when you are buying a new one. While saving you the hassle of finding a buyer for your used car, this may not be a good idea financially. Often the
price offered in such exchanges is lower than what you get if you sell your car independently. Do some research, online as well as offline, and then decide.
5. No Claim Bonus
Do you know that if you are eligible for a ‘No Claim Bonus’ on your auto insurance, you can transfer it to your new vehicle? You will have to do some additional paperwork, but the savings in
the cost of insuring the new car could be significant. So, check with your dealer.
6. Budget and Financing
While it is alright to aspire for the bigger and better cars, you need to ensure that the cost of financing should not become a burden on you. As a thumb rule, the cost of your car should not exceed
about 60% of your annual take-home pay and the EMI should not exceed 15% of your post-tax monthly income.
When it comes to financing, what better option than an Axis Bank New Car Loan? Axis Bank finances up to 100% of the car’s on-road value with attractive interest rates on car loan starting
at 9.25% and tenure lasting up to eight years.
Disclaimer: This article has been authored by The Source, a Mumbai-based content creation and curation firm. Axis Bank does not influence views of the author in any way. Axis Bank and The Source shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.