Your Guide to Buying a New or Used Car This Diwali
Diwali—the festival of lights—is one of the widely celebrated festivals in the country
This auspicious festival is an ideal occasion for new beginnings and purchases, especially cars. That’s the reason why people prefer to bring home a new car during this time.
But is it a good idea to buy a car during Diwali?
Read on as we address this question in the sections below. We’ll also clear any doubts you may have
The Benefits of Buying a New Car During the Diwali Season
Buying a new car during the Diwali season offers the following advantages:
● Discounts and offers from premium car brands
● Cashback and gift options
● Free access to many car accessories
● A good time to exchange your old car at competitive discounts
● Attractive interest rates on car loans
● Auspicious time to bring a new car home
● New car options in the automobile market
Here's a Quick Guide for Buying a New or Used Car This Diwali
Now that you know the benefits of buying a car during Diwali, let us walk you through the process of buying one. We’ll also guide you through each step.
1. Set a budget for the car you want to bring home
First things first. Set a budget for your car.
Determine how much you're willing to spend on your new or used (pre-owned) car. When calculating a budget, consider not only the purchase price but also expenses like insurance, registration, fuel, oil, and spare parts.
2. Decide between buying a new or pre-owned car
You need to choose whether you want to buy a brand-new car or a used (pre-owned) one. You need to compare the pros and cons of both options keeping in mind your budget and requirements.
New cars come with warranties and assurance but are more expensive. Used cars are more affordable but may have more wear and tear and are less reliable.
3. Research car models and options
Search for car models that fit your preferences, needs, and budget.
You need to consider factors such as engine power, battery, fuel efficiency, safety features, looks, and reliability.
Nowadays, you can watch reviews of different car models by experts. You can also check their ratings and features.
4. Negotiate the final on-road price of the car after Diwali discounts
Whether you're buying a new or used car, negotiating the price to get the best deal is important.
Many car dealers give discounts and run other lucrative offers, especially during festive seasons like Diwali. That’s why buying a car during this time can help you save some extra cash.
5. Explore car financing options
When evaluating financing options for your car loan, compare interest rates and repayment terms offered by different banks and lenders such as NBFCs.
You should look for financial solution providers that ask for minimal documentation and offer faster loan processing at competitive interest rates.
What if you’re not eligible for bank loans or don’t have that much time to go through their endless procedures?
You can turn to Naye Bharat ki Finance Company - SK Finance.
Mr. Surinder Singh from Mohali, Punjab wanted to buy a car for his taxi business. We helped him with our car loan with minimal eligibility criteria. He was very pleased with the support and welcoming behavior of our staff.
6. Observe vehicle features and condition
Take a test drive of the car before making a decision. You need to see its comfort, handling, and whether it meets your requirements
You should be even more cautious of the working condition and wear and tear report of the vehicle when buying a used car. You should obtain its history report using the VIN to learn about any past accidents, title issues, and previous owners.
7. Take care of other essentials like warranty and insurance
You should also look for warranty and maintenance terms. Most automobile companies offer a three-year warranty coverage for new cars. You can also consider purchasing an extended warranty, if available.
For used cars, consider an aftermarket warranty.
Ensure that all necessary paperwork is in order, including the bill of sale, title transfer (for used car purchase), and insurance. Get insurance coverage before driving your new or used car.
Remember that buying a car is a significant investment, so take your time, do your research, and make an informed decision.
Things to Consider Before Taking a Car Loan
When researching car financing options, you should consider the following points.
1. Processing fee: This is usually a small amount for the administrative costs of processing and sanctioning your loan. You can get discounts on processing fees during the festive season of Diwali.
2. Loan amount: Try to make a downpayment of 10%-20% of the total purchase value of the car so that your loan amount is not burdensome. You should consider your income and existing EMIs and expenses before taking a loan.
3. Loan tenure: If you can afford to pay a higher EMI every month, consider keeping the loan tenure shorter. If you opt for a longer loan tenure, you’ll need to pay more interest. However, the EMIs could be smaller.
4. Car loan eligibility: The general eligibility criteria followed by banks and financial institutions for a car loan is that you’re between 18-60 years of age and have employment stability of two or more years
At SK Finance, we not only offer car loans to salaried and self-employed individuals but also to farmers. We have minimal eligibility criteria and we offer both new and used car loans with up to 60 months of loan tenure.
5. Loan repayment terms: You should also enquire about loan repayment options and pre-payment fees. Some lenders allow you to pre-pay only a specific percentage of the remaining loan amount and only a fixed number of times.
Buy a Car This Diwali for the Best Rates and Offers
You can make the most out of Diwali offers and discounts by automobile companies as well as banks and financial institutions.
Research everything from the car model and features to warranty and insurance terms and car loan tenure, interest rates, and repayment schedules. These may vary from car to car and lender to lender.
You need to be aware and confirm all points mentioned above with the lender before applying for a car loan. More importantly, please read all the terms and conditions thoroughly to protect your financial interests.
