Buying your first car? Here is how you can lower your cost

Buying a car is a significant financial decision of your life, one which requires substantial investment. You want to make sure you buy a car, which has a brand name, offers the best performance, comes at affordable prices, and is easy to maintain. Apart from the price of the car, several other factors affect its affordability. Mileage, performance, service costs, availability of spare parts, etc., have a significant influence on your car price. Moreover, the way you drive and how well you abide by the traffic rules impact your car's affordability in the long run. 

If you are considering buying a car for the first time, you should not only focus on the brand but also several of these factors. Here are tips to make your first car purchase affordable:

1. Check financing options: 

When you buy a car for the first time, your budget is not high. You want easy financing options that can help spread the cost of your purchase. Assess different banks and lending institutions on factors such as interest rates, approval process, loan tenure, processing fees, documentation, etc. You can seek hassle-free car loans from IDFC FIRST Bank at highly economical interest rates and zero processing fees. IDFC FIRST Bank also offers doorstep loan assistance from experts, ensuring end-to-end support in your loan application and sanction process. Buying a car with funding options like IDFC FIRST Bank Car Loans is simple and convenient.

2. Assess fuel economy:

Check the fuel economy of the car before buying. Fuel economy refers to the amount of fuel consumed by a vehicle for a certain distance. Fuel economy is usually expressed as the distance travelled per unit of fuel consumed. For instance, 8 km/litre implies that a car travels eight kilometres per one fuel unit. The higher the fuel economy, the better is the affordability of the car. A high fuel economy means your car can travel a greater distance per fuel unit. Apart from fuel economy, focus on the fuel type of the car. For instance, diesel is cheaper than petrol, but CNG (Compressed Natural Gas) is more economical than diesel and petrol. Alternatively, you can opt for a hybrid or electric vehicle. Hence, be careful with the fuel type and economy. Each fuel type has its advantages and disadvantages. For instance, diesel cars are expensive than petrol ones, but they are easy to maintain than their petrol counterparts. 

3. Use smart driving tactics: 

Apart from being financially careful when buying the car, you can also lower your purchase cost by using smart driving tactics like keeping your tyre adequately inflated, avoiding carrying a heavy load or overcrowding your car, minimising air conditioning, etc. These can go a long way in reducing your fuel, maintenance, and repair costs. Also, when driving, avoid bad roads and aim to maintain an average speed and limit using breaks. All these tactics lower your fuel consumption and help to increase the durability of your vehicle. 

4. Do not skip your car maintenance:

Keeping your car in good condition and ensuring you get it serviced when due can reduce your repair costs and increase vehicle longevity. Moreover, maintaining the car well will increase the resale value. Therefore, consider maintenance as an investment, and get your car serviced when it is due. Maintaining a car is a small investment compared to the sum you will spend on repairs or replacements later. 

5. Drive responsibly:

Apart from keeping your car properly, you should also focus on driving responsibly to minimise accidents and damage to the car. Driving cautiously also ensures your safety and of others on the road. Moreover, driving carefully increases the life of your vehicle. You are not overstressing your brakes or wearing your tyres out unnecessarily. Your engine is not overworked. You are protecting your car from any possible damages that can cause a significant dent in your pocket. 

Opting for a FASTag can help ease many of your troubles while driving. Choose FIRSTForward to experience a superior driving experience by benefitting from a range of driver-friendly features.

6. Park wisely:

Parking for your car is an additional expense to account for when buying a car. If you live in a society that offers parking facilities free of cost, you do not have to worry about parking expenses. However, if you do not have free parking, your aim should be to find a parking space with a cheap ticket price. Even if you save a little sum, it can help you save a lot of money in the long run. For instance, if you pay Rs. 30 for parking each day, collectively in a month, you shell Rs. 900 and yearly you spend Rs. 10,800 only for parking your car. However, if your parking is free or as low as Rs. 10 per day, you save a huge sum. In this case, you save over Rs 7,200 annually. You could instead use this money to pay your car loan EMI (Equated Monthly Instalment). 

7. Get a car insurance policy:

In India, the Motor Vehicles Act mandates having a car insurance policy for all vehicles. Anyone found driving a car without valid car insurance is liable to pay a fine. However, apart from being a legal mandate, a car insurance plan is also helpful in financially securing you against any unforeseen circumstances, such as accidents, third-party liability, and more. For instance, if you invest in third-party car insurance, you will get financial security against any third-party liabilities against life and property. Alternatively, if you buy a personal accident cover, your car insurance will pay for damages incurred by your vehicle as well as sponsor your medical treatment. That said, the exact coverage depends on your policy. Car insurance is an investment that can add to your initial cost of buying a car, but this cover will eventually save a much larger sum in the future if needed. However, to cut down on your car insurance cost, you should conduct in-depth research and compare different insurance companies on parameters like premiums, payment flexibility, etc. Choose an insurance company that offers comprehensive coverage at affordable premiums.

In all, be careful of these parameters related to ensuring that the overall cost of buying a car fits your pocket. However, the easy availability of car loans has made buying a car even more affordable and convenient. You can get economical interest rate loans from IDFC FIRST Bank with minimum documentation. Apply for the car loan online and pay zero processing fee. IDFC FIRST Bank offers a loan tenure of up to ten years, giving you maximum freedom to repay your car loans comfortably. Further, if you decide to prepay your loan before its tenure, you do not have to pay any charges for foreclosing your car loan. You can use the online IDFC FIRST Bank calculator to find the payable EMIs (Equated Monthly Instalments). The calculator requires you to only input your loan sum, loan period, and interest rate. Once you know the precise payable loan amount, you can plan your car loan purchase accordingly. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.