Rise in middle class income and young population have resulted in strong growth for automobile Industry in India and all over the globe. The amount of new launches coming every year on new car models and deals on car purchases, it is more tempting than ever to make a purchase on vehicles.
The advice in this blog is based on my accumulated experience of working in Automobile Industry for a decade(Indian Market), which can help you to save the unexpected money in your new car purchase.
Before we start
I Appreciate You Putting Faith In My Work By Reading My Blog. I Don’t Take That For Granted.
In writing this blog, I did my best to cover topics that will help you get the most out of your time, money and efforts on your new car purchase and help you beyond merely planning.
Car Inventories
The Car which is stacked down for more than 60 days in the showroom is considered to be a vintage stock and a opportunity for you to negotiate and save up to 10% on the Ex-showroom Value. Dealerships get their inventory in “credit “ from the manufacturer. This credit includes interest. The longer a car sits on a lot, the less the dealership makes on that unit. To avoid further loses due to interest charged by the Banks or manufacturer’s, dealers are ready to liquidate those inventories at lesser price. All you need to do is just ask them the manufacturing month of the car and if the car is over 60 days old, you have a chance to negotiate
New Car Insurance
Its not necessary to buy your new car insurance from the showroom. The manufacturer will always promote their Insurance. The sales executives get commission for selling In-house insurance and they tent to influence the consumers. There are many other insurance companies in the market who are offerring a product with similar feature of 1 year comprehensive and 3 year third party Insurance with Engine protection cover and Return To Invoice in the car Insurance. All you need to do is check for the other Insurance companies in the Market. There is a company called Policy bazaar which is an Indian insurance aggregator and a global financial technology startup, where you can compare insurance policies offered by various insurers in India & buy insurance policy online and save upto Rs.20,000/-
In the market we have few Insurance companies Acko, Godigit, who are offerring up to 70% discount on the new car insurance.
Best Months to Purchase New Car
When to buy a car will really be your call. But if your plan is to use the car for long term, you could look at making use of the December discounts. December has the year’s highest discounts and best incentives. You can save approximately up to 20% on the Ex-showroom value.
Festive months- The manufacturers and dealerships rolls out attractive schemes to maximise there sales. It is considered to be auspicious and majority of people shop during this period.
Month ends- In the beginning of the month dealerships may not disclose their complete offers. Every dealership’s have their monthly targets and to full-fill those desired numbers they tent to give more discount in the end of the month to avoid loosing any sales.
Charging 2% Extra On Card Payments
Many dealerships have resumed charging unlawfully a premium from customers who pay with cards, undermining the government’s efforts to promote digital payments. The agreement retailers sign with banks for card-swipe devices — technically called point-of-sale (POS) terminals — contains a clause forbidding them from charging customers for the facility.
As per RBI Norms Merchants cannot charge any extra charges on Debit/Credit Card Payment. Such fees are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments. You have all rights to say no to such charges and to stop this malpractice growing
Mandatory and Non Mandatory Prices
While purchasing a new a car you have a to be careful with Mandatory and Non Mandatory prices. In some dealership’s you may experience a false statement given by the sales executive for the below parameters which are considered to be mandatory and thats not true. Its your choice to exclude those non mandatory fields which can save some money
Accessories
A dealer added option is any accessory that a car dealer installs on a vehicle after they receive it from the manufacturer. Dealers add these items because they have high profit margins up to 50% and most people don’t try to negotiate them. Here is a chance for you to ask for the discount with no hesitations.
What other ideas can you add to this list that I may have not mentioned?
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Thank you for reading and good luck with your new car purchase!
