The Complete Guide to Buying a New Car in India

The Complete Guide to Buying a New Car in India

Planning to buy a new car? Better to understand various steps involved in the process and factors which cause the difference between the ex-showroom and on road price of your car.


The feeling of buying a new car and taking it down from ramp of dealership is ecstatic. Not only the aroma of a new car is mesmerizing but returning home with a valuable asset that is incredibly designed and packed with the latest technology is euphoric too. With easy EMI on loans, promotional offers by the car companies, amazing discount deals and a plethora of other lucrative schemes woo the new customers and make the process of buying a new car like a walk in the park.

New cars are always a delight to own. Their lifespan is more with lesser chances of problems in the initial years. Even if any issue pops up, the warranty of the car covers every possible issue. With other amazing features such as motion detecting rear cameras, anti-lock braking system, etc, it is hard to find a bigger bang for your buck than it is in the case of a new car.

But behind the scenes of a new car i.e. research, finalizing one that suits you, settling on one car model, looking for a car insurance, etc are easier to say than getting done. Thus, we have come up with a guide that is sure to make your car buying experience an exulting one.



One of the four pillars of buying a new car, groundwork or research is indispensable. Consider below points under this head. 

How much are you willing to pay? – Car price is just the tip of the iceberg. The addition of accessories, insurance premium, taxes etc may all sour the merry experience of buying a new car. Therefore, finalize a budget before initiating your search.

The Perfect Car to Cater your Needs: Once the budget has been decided, the next step is decide the kind of vehicle you need. Whether a hatchback will be a perfect option or you need a sedan to cater to your needs? Whether an MUV will go with your style or an SUV will be an icon of attitude for you? Do you have joint family or a nuclear one? Buy car after answering the above questions to make the process easy.

Decide the Variant: A majority of car companies offer its customers two engine options - Petrol and Diesel. Diesel cars are much more torquier, returns better mileage but they come with extra bucks. Petrol cars, on the hand, cost less offer more power but loses on mileage front. Before choosing the one, make sure to consider daily average running. If you have to drive more than 50 kms a day then go for diesel engine else petrol is best suited for you. Apart from that, petrol cars are low on maintainece but diesel cars can be beneficial if you have more running.  

Don’t buy a car that is “on-the-verge-of-extinction”: There are certain car models in the market that are about to discontinue. Don’t buy such vehicles as finding their spares could be a problem in future. More so, the resale value of such cars will make you resistant to sell. 

Just wait for the moment: India is a land of festivals. During festival days, sellers offer discount, deals, cashbacks, etc. to the buyers to increase their sale. So, if any festival or celebration is around, wait for it to rejoice great deals and discount.

Have a Seat

Perhaps you are now exhausted after so much of groundwork and research to buy a car. But before you flip the pages of car price guide and look for the features and functionality of your selected new cars, “Have a Seat”. We are not asking you to relax on a recliner but visit the showroom of these car companies to try your hands on your selected models with a test drive.

Zoom the automobile on your own:  Because a renowned anchor gave his/her review and feedback on your favorite car, it should not make you walk to the showroom, pay the cheque and drive home with the asset. What is comfortable for someone may not have the same effect on you. Thus it is advised to take a test drive on your own before making a final call. If you are still not sure after a mile ride, ask the seller for a comprehensive test drive for it allows you to explore more of your new car.

Now ask your ally: Ask your friend, relative or an acquaintance with a good know-how of cars. Handover the steering wheel to your friend and take his/her second opinion on your chosen new cars. After all, a friend to help you in buying a new car is surely a rockstar.

It’s a Drive of Wisdom: A test drive does not mean hopping from one car vendor to another just to try your hands on new models and zoom the new cars on the road along with a sales representative sitting beside. Rather all the technical doubts, features clarifications, price guide, the delivery time of the car should be clarified with the sales person sitting by your side.

Be Subtle with Gizmos: You make-up your mind during the test drive to buy a car that you are driving. Don't be desperate in asking about the gizmos and gadgets that you get with the car. There are oodles of gadgets that come with a car and with up selling of the sales representative, you might baffle on your final decision. Above all, including unnecessary gadgets might give the final price a very high jump.

Make the dealer sign on the dotted lines: Sometimes it so happens that during the test drive phase, the car companies promise a lucrative discount, quick delivery, complementary car services, etc. to the individual who is out to buy a car. But on delivery day, the car companies just turn off the promises. It is, therefore, necessary to take their words in writing if you are booking a car with them.

Close the DEAL

Congratulations! After so much of homework, efforts and groundwork, you are finally going to buy a new car. Do keep in mind the following points for a ride as smooth as silk.

Look for the best loan facility: We know how deeply you are plunged into the merriment of buying a new car. But if you are making a purchase on loan basis then take time to compare various loan policies of banks and financial institutions. Also, negotiate the interest rate, take a look at manufacturer finance deals, and try to source automobile loan from a nationalized bank.

See if an exchange offer is there: If you are looking forward to selling your old car, ask your car company if there is any exchange programme going on. The old car may help shed the burden on your pocket.

Purchase Car Insurance on your own: The car companies earn huge commission from you when they sell you insurance. In order save yourself from paying that amount, look for a car insurance yourself.

Extend your “SAVINGS”: Warranties can save you from any defect or damage. It is always advised to make a purchase of extended warranty as it always benefits the users of new cars.

Go for Safety Features: Blessing new cars with robust music systems, decorating them with wheel lights, etc. throws the necessary safety features out of the mind. Buy a car and invest on essential safety features such as airbags, anti-lock braking system, electronic brakeforce distribution system, etc.



You are about to start the engine and zoom home in your new car. But make sure to undertake an inspection before leaving the car showroom.

Ensure everything works: Ask the dealer or the salesperson to give you a demo of every feature and functionality of your new car. This way you can ensure that everything works fine.

Visually Inspect: Check the mileage for zero or almost close to zero for you don’t want to buy a car that was used to give test drive to potential customers. Open bonnet and check the battery for corrosion, check windows and doors, get in the car and check the floor mat, blow the horn once, have a good look around before cranking up the engine.

Inspect the paperwork: Just don’t sign anywhere blindly because you have to show your new car to everyone back home. Take your time to read the paperwork before signing on the dotted lines.

Collect your free goodies: Don’t leave the free goodies (if any) or accessories that you get while buying a new car. Collect them all before leaving the showroom.

Documentation: Make sure you bid adieu to the process of buying a new car with the necessary documents. These documents are Payment Receipts, Sales Certificates, Owner’s Manual, Warranty Documents, Car Service Booklets, Registration Book, Warranty Card of Battery, etc.


Epilogue of the Car Buying Guide

Buying a new car perhaps is one such incident of your life that you would cherish forever. A plethora of middle-class family in India buy a car with lots of enthusiasm and invite their near and dear ones to catch a good peek of their new asset.

But in order to keep any purchasing complications at bay, it is very much necessary to gear up with the knowledge of buying a car.

To summarize, “Buy cautiously and drive carefully your newly purchased car. Happy Driving!”

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