If you thought the best time to buy a car is during Diwali or post the budget, think again. The time to get a new set of wheels is NOW! Let's figure out why. It's raining discounts According to an advertisement in the Mid Day, on December 11, 2007, Vitesse, dealers for Maruti Suzuki, are offering discounts varying from Rs 27,500 to Rs 68,000, depending on the models. These include gift cheques and exchange bonus.
Similarly, Hyundai Motors has also announced various discounts across models ranging from Rs 37,100 to Rs 55,953. All discounts include free insurance, accessories and an extended warranty and exchange/loyalty bonus. Both offers are valid till December 31, 2007.
Car companies gear up for New Year Typically, December is a sluggish business month for car companies.
Consider this: if you were to sell your car, say, two to three years after you bought it, the car's resale price would be evaluated according to its year of make or model year. So, if you bought a car made in December 2007, the car model year would be 2007 and it would fetch you a resale price at par with any 2007 model car even if it were made in the last month of the year.
So, the only way car manufacturers can get customers to buy their December cars is by doling out attractive discounts. According to officials at Hyundai Motors, the year-end offers help increase car sales.
Striking a deal Dealers also hand out handsome discounts, around this time of the year. Boney Fernandez, general manager of Mumbai-based Fortune Cars Private Ltd, dealers for Tata Motors says, "The extent and nature of discounts that dealers give varies on a case-to-case basis."
The bottom-line is: no dealer wants to carry stocks into the new year.
Tip: Make sure you check with all the neighbourhood car dealers, before taking the plunge.
Resale value If you are wondering: isn't it a raw deal if your resale value is going to dip? Well, it's not all that bad if you are buying your first car and intend to use it for a few years. The year model number only affects you when you want to sell the car in a year or two. But then a lot of first-time car owners don't sell out, so soon.
Officials at Maruti Suzuki India Ltd have an interesting insight. According to them, with organised players entering the second-hand car market, the resale price is evaluated in a more scientific manner. Hence, a December 2006 and a January 2007 model car won't differ too much unless the model has been discontinued or upgraded significantly.
"Also, since the car market has become more active with so many new models, variants and face-lifts being launched rapidly, these factors now impact the resale price more than the December-January factor, " they said.
Read the fine print, then buy
Bhushan Mhapralkar, managing editor of Automotive Products Finder magazine offers some pointers for car shoppers:
- The more you bargain, the more you gain.
- You can certainly benefit from discounts. However, some discounts offered by the dealer may not be worth opting for. For instance a remote central locking system for a car that is fitted with a key operated central locking system may not translate into a discount, well-spent.
"So, be careful when you choose from the list of accessories offered under the wings of discount, " he adds.
