Buying your first car? Here are all the little things you need to keep in mind

Lower maintenance costs, a wide ranging after-sales network, and great mileage, should be the top choice for those looking to purchase a new car. These factors also enhance the resale value of a car. (Representative Image)

Despite the increase in fuel prices, purchase costs and interest rates, private car ownership continues to rise in India. It also continues to remain a highly calculated decision, with many variables to be taken into consideration. Here’s what you should keep in mind before purchasing your first car:
1. Segment

SUVs remain the fastest growing segment in the country. While this is a fact, the definition of what qualifies as an “SUV” is heavily contested. At the entry level, you have cars that essentially bear the same footprint as a hatchback, albeit with increased ride height, ground clearance and plastic cladding around the lower half of the body work. While these features don’t give you any inherent advantage in off-road scenarios, they make vehicles such as the Renault Kwid, Mahindra KUV100, Mahindra Bolero Neo and Tata Punch more practical to drive.

2. Cost of ownership

Not surprisingly, Maruti Suzuki hits the trifecta of low servicing/maintenance costs, a wide ranging after-sales network, and great mileage, making it the top choice for those looking to purchase a new car. These factors also enhance the resale value of a car. The Renault Kwid, Maruti Suzuki Alto and WagonR routinely feature in the list of cars that are the cheapest to maintain, with their estimated service costs for the first five years of ownership falling approximately under Rs 25,000.

3. Safety rating

Given that India has the highest number of on-road fatalities, the safety rating of a car has become a major selling point even for entry-level cars. Although brands such as Maruti Suzuki have introduced several passive safety features, the safety ratings of the cars, as per Global NCAP (new car assessment programs) ratings, remain abysmal. Surging ahead in this space are brands such as Tata Motors and Mahindra, both of which have put out products (Punch, Altroz, XUV300 etc) that have secured five-star safety ratings. Hyundai, India’s second-largest carmaker, also trails on the safety front, with best-sellers i10 Nios, i20 and Creta receiving less-than-stellar safety Global NCAP ratings. In general, features such as the number of airbags, structural integrity, ISO-FIX anchors (for child seats), seat belt reminders, ABS (anti-lock braking system), ESC (electronic stability control) etc. all add to the safety score of a car.

4. Resale value

Here, too, some brands fare better than others. Cars from Honda and Toyota generally tend to have great resale value because of their terrific reliability scores. However, if they’re on the pricier end of the spectrum, it’s back to brands such as Maruti Suzuki, with cars such as the Swift DZire and WagonR topping the list of depreciation-resistant cars. The Hyundai Creta also has great resale value, in case the budget for your first purchase is sub-Rs 20 lakh.

5. Fuel Type : Petrol vs CNG vs EV

Stricter emission norms, rising fuel costs and a limited life-cycle have made diesel powertrains all but extinct in the mass market range, particularly when it comes to sedans. Even with high-end SUVs, four out of five purchases have petrol powertrains. The good news is that you now have more factory-fitted CNG options than ever before, even for premium hatchbacks such as the Altroz. The advantage of a CNG car is obvious: better mileage. However, in most cases, there is a compromise on boot space.
CNG is the best option for those who travel 30-50 km per day (any less, and the higher acquisition and maintenance cost of a CNG car will outweigh the savings on fuel) and find the acquisition costs of an EV too high. CNG also rids you of any range anxiety as it allows the owner to travel long distances. These vehicles, however, do have some disadvantages: (in addition to compromised boot space) they do not deliver power as effectively as a petrol engine. CNG stations aren’t as evenly spread-out as petrol/diesel ones, leading to longer queues at CNG stations.

Then there are electric cars. Given that the cheapest EV in the market is priced at Rs 8.99 lakh (ex-showroom), the owner can save roughly Rs 6,500-7,000 per month. Which means the break-even point through running cost savings comes after nearly 1 lakh kilometers for an entry-level EV vs an entry-level petrol car. The benefit? A significantly smoother powertrain with little to no maintenance cost. The drawback? Entry-level EVs are limited to inner-city usage only.

6. Used cars

Where budgetary restrictions of Rs 6-8 lakh would get you access to cars such as the Maruti Suzuki Alto, WagonR or Renault Kwid in the entry-level new-car market, the same budget could give you access to cars with better safety, better multimedia, more space and greater comfort. Used cars are also quicker to obtain, without any semiconductor shortages adding to the waiting period. A few preventive checks and you’re good to go. While buying a used car, however, it’s important to keep a few factors in mind, in no particular order. To begin with, get the vehicle checked by a trusted mechanic. Ensure that the model hasn’t been recently discontinued. You might be able to bargain for a lower price, but in the long run, you will find spares harder to find. Steering wheel alignment, engine cooling, lighting and emission checks are necessary beforehand. If you are buying a relatively older luxury model, ensure that the odometer isn’t over 55,000-60,000km as the suspension on heavier cars tends to wear out faster. Check the service record, put the car through its paces through a quick test drive, and then take a call.

7. Financing

According to Shashank Shrivastava, Executive Director, Sales & Marketing, at Maruti Suzuki, 80 percent of the company’s buyers make purchases via car loans. While taking a loan for a vehicle, ensure that it is not more than 20% of your monthly income and/or the loan duration is under 60 months. For a used car, it should be half that term.

When speccing-out your car, focus on the essentials. Safety features, including additional airbags, may not seem as appealing as fancier multimedia options, but will go a long way in safeguarding you and your family, particularly on highway journeys. ESC isn’t a mandatory feature in cars yet, unlike ABS, so ensure that these features are prioritised over a larger touchscreen interface and steering-mounted controls.