Six Steps In Buying A Car: Step-By-Step Procedure Explained

Car ownership is no longer what it used to be in the past. It is no longer a luxury but has become a necessity. People buy cars sometimes as a status symbol but most times because of the many benefits that come with them.

Owning a car brings with it perks like safety and privacy during trips. Ownership of a car also allows one to go anywhere they want to, at any time without any hassle. It is also extremely beneficial to own a car, especially in times of an emergency as the car provides transportation without any delay.

The list of benefits of car ownership goes on, however, buying a car requires a large investment. The most affordable cars cost a few lakh rupees and the more expensive ones even go into crores of rupees. Other factors like maintenance and the daily upkeep of the car require additional funds too.

With these financial factors in mind, here are six steps you need to take in order to buy the car you desire.

1. Know Your Needs

Traditionally, there were a few types of automobiles made by manufacturers — Hatchbacks, Sedans, MUVs & SUVs. Now though, things have changed in the automotive industry, specifically in the Indian market. Segmentation has increased, giving rise to sub-segments like Sub-Compact SUVs, Compact SUVs, Mid-Size SUVs, Compact Sedans, Mid-Size Sedans, Entry-Level Hatchbacks, etc.

It is quite clear that there are lots of vehicles to choose from and the first step to take while buying a car is assessing your needs. What would the car be used for? Where will it be driven? How many people would be driven in the car? Are there any specific features you need? How many years do you intend to keep it for?

These are some of the questions you need to ask yourself to know exactly what you need. Buying a car would be of no use if it doesn't serve the purpose, and it is your needs that dictate the purpose.

2. Financial Budget & Expenditure Plan

Assessing your needs is a relatively easier task than planning your expenses. There is no doubt that buying a car is an expensive affair. Most buyers cannot afford to make a payment in cash and will opt for the vehicle to be financed. However, there is a downpayment needed for the loan, and then comes the EMI that you will need to pay every month.

In addition, there are running costs like fuel, maintenance, insurance, repairs, etc. This aspect is often overlooked by many. Planning the finances just for the purchase of the car isn't enough, but there needs to be a budget for the running and everyday usage expenses too.

3. Explore Options & Take Multiple Test Drives

Indian buyers are often spoilt for choice in most four-wheeler segments and that is exactly why this step is extremely important in your car buying process. Take a trip to the nearest car dealerships to explore the cars and the exact variant that fits into your financial plan or budget. A few brands might offer multiple models that fit your budget while others might have just one option.

Take a good look at all the features the cars have to offer and make a note of the best offer from each dealer. Also, make sure to compare prices for the same model at different dealerships. Take advice from reviewers and friends and family who are familiar with the subject. Lastly, do take multiple test drives of different models to get a good feel of what the car really is like to live with.

4. Price Negotiations

Most dealerships in India offer a certain discount on certain models without much of a hassle. However, after this discount, most dealerships wouldn't be willing to budge. This is where prior research helps. Knowing the best price offered by other dealerships is a huge advantage and will help reduce prices even further as dealerships would want to compete with each other.

Another thing to keep in mind is that the price you have received from the dealership must include other costs such as insurance, road tax, registration fees, etc. Most dealerships would add a handling fee to the on-road price of the car. You can bargain on the handling fee or ask for it to be waived completely. Insurance prices to vary between each service provider and if a cheaper option exists in the market, you must go for it.

5. Know Your Rights

As a buyer, you have some rights and it is the legal responsibility of the dealership to fulfill your rights. To make the best of this, you must be aware of your rights as a consumer. While the list of rights is lengthy, a few important ones are listed below:

- The car must be of satisfactory quality. The dealership must provide a car that must be in the best condition, should function reliably, and must be roadworthy in every aspect.

- No information must be withheld. As the buyer of the car, all information regarding your car must be conveyed to you. Misinformation or false information is illegal.

- If the vehicle is not of satisfactory quality, you do have the right to reject it. The dealership personnel will try their best to convince you that you cannot do so, but it is a possibility.

- You have the right to carry out a pre-delivery inspection and no dealership can forbid you from doing so.

6. Arrange The Required Finances

Financing your vehicle in the right manner is an essential part of the purchase process. A car loan can be obtained from a lending co-operative or from a bank to cover the cost of the vehicle. While the loan helps cover the cost of the vehicle, there will still be a need to pay off the loan and this is where an additional income would help greatly.

An additional source of income to help with the maintenance, repairs, and fuel expenses would be of great help. Online trading, for example, is a great source of additional income. The Binomo platform is a great source of additional income to help you finance your dream car.

Binomo is a well-known trading platform that is available in over 130 countries. Thousands of traders from India too rely on Binomo for their trading activity as it is reliable and the trading is genuine. Investing in Binomo will let you trade different assets including stocks, currency pairs, commodities, metals, etc.

In order to help first-time traders, Binomo also provides excellent training solutions. The demo account is a safe environment where beginners can try their hands at trading without the risk of burning their hands. Basically, in the demo account, you are not required to make an investment. Whenever ready, the real trading world on Binomo awaits you.

Any income earned on Binomo can be used to finance the car of your choice or the maintenance thereof. It does seem like the perfect platform to get some extra income.

Useful Financial Tip

Budgeting and setting aside enough finances to buy and maintain a new car can be a tough job. However, knowing that you possess enough money for the same task can be a huge relief. This is exactly where Binomo will be of great help as it will provide you with an additional income. However, any financial activity involves the risk of losing funds. If you take the risk though, you can earn money as well. Now it is time to take that step towards your dream car.