After a home, the next most expensive investment an individual makes in his life is a car. Definitely everyone thinks a lot before buying a car and every aspect is given a keen thought and an own little research. Let us bring to your attention some not so obvious thoughts you might miss out on.

Here are few tips you should know when you are planning to buy a Car

Need or Comfort: Ask this question before deciding the car type which is you are going to purchase. If it's for your temporary need then go for used cars which you will get easily with extra discounts at low price rates. In case you are saving for a long to fulfill your dream of having brand new car, then definitely this is going to be a good guide to know passbook.epfindia.gov.in UAN Login to check PF Balance without UAN number

Budget: Don’t get lured by the discounts on advertisement and end up making a purchase you really cannot afford. The thumb rule when buying a new car is you shouldn’t exceed your budget beyond 60% of your annual take-home income.

For instance if your monthly take-home salary is Rs 50,000 then don’t go for a car costing you beyond Rs 3.6 lakh, that is 60% of annual income (Rs 6.0 Lakh). Another rule you shouldn’t break is of the EMI not exceeding 15% of your post tax monthly income. Follow these rules rightly and you will not regret the decision.

Keep in mind the expenses other than capital cost of Car, which includes Insurance Premium, maintenance costs, fuel costs etc.

Petrol or Diesel: It's always a dilemma between Petrol and diesel variant. But you need to look at the fact that diesel is cheaper than petrol but a diesel variant is expensive by 75000 or a lakh than a petrol variant. Diesel cars also call for high maintenance. New age diesels are lightning fast, super efficient and offer better drivability than petrols, but there is a price premium to pay. Some diesels can work out cheaper if you view them from an EMI's perspective (EMI + monthly running cost). The distance travelled everyday should also be given a thought before take a call on any of the variants.

Best time: Periods like Shraad are slack seasons for dealerships; many buyers stay away for superstitious reasons making it a good time for a discount. Unless you are buying a car in your company’s name and must buy at a certain time for depreciation benefits, shop around during these dry spells. Even so, you should avoid buying a car in December; by waiting less than a month your car will be a year newer on paper, for resell value and other documentation.

Finalize the Paperwork: While finalizing the car deal, make sure it covers all the documents including car’s registration, car purchase invoice, state taxes, road taxes, and other sundry taxes, service book. Also, make sure that your car dealer is providing an insurance policy. Otherwise, you need to buy one separately.

Buying a car for the first time can be difficult. You have to check quotes, car loans estimates, and many other factors, before entering into the deal.

Published by Joseph Nicholls