Decoding Insurance

6 Things To Consider Before Buying Your New Car

 6 Things To Consider Before Buying Your New Car

As exciting as it is to have your own car, buying a new one can become a harrowing experience if you don’t have a clear plan. Due to the availability of numerous options in the market, it is easy to get confused while looking for a new vehicle. It usually happens that people begin with one set of key points while planning on a new car, and are left with a completely different set by the end. This journey can be simplified by focusing on priorities and being guided by logic. The key is to periodically answer the many questions that arise in your minds while getting a new car.

Whether it's a matter of which car to get or how much budget to allocate, several factors weigh in. As the owner of the car, it is important to look at the complete picture while buying your new four-wheeler. Some mandatory things to consider include factors like the budget of your car to its life-long maintenance. To help you in this process, here is a list of things that you must consider before getting a new car.

1. Driving Style

Purchasing a vehicle based on your driving style is one of the primary things to consider while getting a new car. As the driving style depends largely on the personal choice of the owner it becomes highly relevant. So, if you are someone who enjoys the humming of a powerful engine or the speed of a car, buying a basic hatchback will not work for you. Similarly, if you enjoy a peaceful, comfortable ride around the localities of your city, buying an SUV will leave you disappointed in the long run. Another thing to remember is the purpose for which you want to buy a car. For example, the priorities of a person looking for a commercial vehicle will differ greatly from that of a person looking for a car for his parents. Thus, these two sub-factors will help in narrowing down the type of car you should purchase ideally.


2. The Budget

The first thing to understand here is that the final price of a car is not based on a single vertical. There is a difference between the on-road price of a car and the ex-showroom price of a car. The most crucial difference is that a car's on-road price is always greater than its ex-showroom car. Hence, it is best to get a holistic view of things while buying your car. Before the research for your new car begins, it is essential to set your budget and your mode of payment. Questions like what is the best interest rate you can find, or how much down payment you intend to make are very important. Be sure to check your recent bank statements and monthly bills to determine how much you can practically afford. Also, ensure that you account for constant costs of vehicle ownership, like maintenance, gas, etc.

3. Test Driving

The road to selecting your dream wagon is paved with test driving the shortlisted set of car models before making a decision. While you are reviewing a car that you might buy, look out for points like the engine quality of a vehicle, its comfort level, its annual maintenance, etc. before you jump to a conclusion. Sometimes a very good-looking car might not be the best fit for you, or a car that is lower on your list might turn out to be your perfect match. Take out time and test each model so that you specifically know the pros and cons of all your options.

4. Registration Process

Once you buy a car, it needs to be registered with the nearest RTO office. Doing this allows you to be able to drive your new car on Indian roads without any fear of fines, penalties, etc. For this, you will have to pay vehicle tax at the time of registering your car at the RTO. After this, your car will receive a number plate which you need to display at the front and back of your car. You will also receive a registration card for your car. Additionally, you are required to pay a fee for registration i.e. registration fees, road or vehicle tax and/or hypothecation charges. Usually, the following set of documents are required at the RTO to register a new car:

1) Form 20

2) Form 21 (Sale certificate)

3) Form 22 (Pollution under control certificate)

4) Form 34

5) Identity proof

6) Address Proof

7) Latest Photographs


5. The Maintenance

No brand-new car will give you hiccups regarding maintenance during its initial months. However, to ensure your car's top-notch condition even years after the purchase, you will have to rigorously follow its maintenance schedule. Ideally, a car should be serviced every 3-4 months for its smooth running. Buying a car is pretty much like taking care of a small child. Besides this, you also need to familiarize yourself with a few basic things like changing a flat tire, driving on reserve fuel, checking various fluid levels in your car, etc.

6. Getting Insurance

Having basic third-party motor insurance is a legal mandate for driving a car in India. While getting car insurance your insurer will consider the make and model of your car when setting their premiums. Therefore, your new car could either be more or less expensive to insure than your old car. Be sure to find the car's VIN (Vehicle Identification Number) and request a quote from your preferred insurer and a bunch of others for finding the best deal. It is essential to consider your credit score before applying for a loan. Usually, the better your score is, the lower is the interest rate on your loan.


Leading Global Financial Tech Innovator


11 Million+

Happy Policybazaar customer

50+ Insurers

Offering over 4000+ plans

24X7 Claim Support

Made stress-free

Unbiased Advise

Keeping customers first


rate-1 rate-2 rate-3 rate-4 rate-5

Playstore Ratings

Story of the month

PB Superheroes PART-3: Why Policybazaar advisors love their job

PB Superheroes PART-3: Why Policybazaar advisors love their job!

Jasmine Kalra/

18 Apr, 2022

Similar Stories

Decoding Insurance

What Should You Do In Case Of Car Accident?

Decoding Insurance

Car Insurance Add-On Covers To Make Your Car Monsoon Ready

Decoding Insurance

Top things to keep in mind when Renewing Car Insurance

Decoding Insurance

What is pay as you drive motor insurance

Decoding Insurance

How to Check Car Policy Status