Auto InsuranceFinancial Plan

Guide for New Car Buyers

Are you looking to hit the road on your brand new car anytime soon? If yes, you may consider going through some of the prerequisites related to buying a car before you sign the deal. Your excitement levels must be brimming to the top, but you should not overlook the importance of getting a sound knowledge on car purchase so as to ensure you are not duped or caught up in any trouble during or after your purchase. Imagine! You buy a brand new car and some irresponsible auto-driver ramming into your vehicle! Bearing costs of such unnecessary damages on your car would be hefty on your pocket. So, how about fighting future contingencies beforehand? Now that purchasing car insurance has become mandatory by law in India, do not compromising on picking the right car insurance to keep your car covered against accidental damages or natural calamities. Here are a few more things to remember before buying a car.

  • Research Thoroughly – You are going to invest a lot of money on your car. So make sure you conduct a thorough due diligence on car dealers. Do a competitive analysis of the market prices and car dealer reviews. Based on optimum scrutiny, pick a choice. But double-check doing proper paperwork with car dealers while purchasing your car so as to keep away from potential troubles in the near future. Also, never buy a car before taking a test drive. Ensure checking the car’s features carefully before signing the papers. The last thing would be to get a defective car home!

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  • Improve your Credit Score – If your creditworthiness does not speak well for you, you may not be able to purchase your car on a car loan. If you have a great credit score, you shall be offered attractive interest rates on a car loan. If your credit score is poor, you may lose out on great offers, and end up paying more for your car, or may even be denied a car loan!
  • Pick the right time for purchase – Usually dealers are looking to close sales targets on year ends. If you plan on purchasing a car during this time, it may benefit you quite cost-effectively!
  • Choose the right car insurance – Choosing car insurance is a tedious task, because in the long run the best deal is going to benefit you the most. Do not simply shop for car insurance at the very first go! Do a thorough research on the various car insurance schemes and pick the right one for your car. Go for the one which gives you the maximum coverage.
  • Understand the car insurance basics – Getting a third-party car insurance is mandatory for all Indian vehicle owners. This covers the basic damages caused to a third party in the event of any accident. On the other hand, a comprehensive car insurance policy covers third party liabilities as well as damages caused to you and your car. Protect your car against theft, natural calamities and accidents with this type of car insurance policy.

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Delay no more! Before you starting vrooming on your new set wheels, make sure you secure this favourite asset of yours with the right car insurance!

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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