Are you planning to buy a new car — your first wheels or a much-awaited upgrade of the old one? Then the festive season could be the right time to purchase as several companies offer discounts and attractive deals now. Moreover, you will get reduced interest rates on car loans from various lenders at this time. It may sound exciting on paper but could be a bit daunting in reality when deals and offers are pouring in from every corner. It is important to understand and evaluate the benefits that a deal is offering. Is it really saving you some extra bucks or just a mere eyewash? Read on to find out how you can make the most of the festive season deals on cars.
Buying a car? Always go for cash discounts
Look for cash discounts while buying a car as it will bring down the total price of the car. Even if you go for a car loan, it will reduce the equated monthly instalments (EMIs), i.e., the overall cost of the car. Several manufacturers or dealers offer attractive cash discounts during the festive season. However, do not expect cash discounts on cars that have just been launched or are in great demand.
So, always ask for cash discounts as it makes more sense than other freebies such as free insurance or accessories. Do not forget to bargain for the discount with your dealer to maximise savings.
Corporate discounts can save you big
Do you know if you work at a reputed company, you can get corporate discounts? Some car manufacturers offer discounts for employees of select companies, known as corporate discounts. The dealers usually have a pre-approved list of companies for corporate discounts. If your company is on that list, you will be eligible for a corporate discount.
Also Read: Big discounts on cars under Rs 8 lakh
If you are not sure whether you will get a corporate discount, do not hesitate to ask your dealer about it. Do note that the pre-approved list and discounts will vary from one dealer to another, says Nitin Chadha, Senior Vice President, ACKO Drive.
Midsize sedan cars discounts
Car Model | Maximum Discount# | Details |
Honda City Petrol | Rs 88,000 benefits | Rs 25,000 cash discount + Rs 15,000 exchange + Rs 5,000 corporate discount + Rs 4,000 loyalty + 5-year warranty package on City Vx and Zx petrol worth Rs 13,000. Additional benefits: Rs 6,000 as Honda to Honda exchange bonus + Additional Rs 20,000 corporate discount for select profile customers |
Honda City Hybrid | Rs 1 lakh discount | Discount is available on V CVT hybrid |
Hyundai Verna | Rs 45,000 benefits | Rs 25,000 cash + Rs 20,000 exchange |
Skoda Slavia | Max Rs 1.5 lakh benefits | Benefits include exchange, corporate. Differential offer on Slavia variants |
Volkswagen Virtus | Max Rs 1 lakh benefits | Benefits include exchange, corporate. Differential offer on VW Virtus variants |
#Discounts are valid till month-end
#These offers are applicable in Delhi. These offers are subject to change at any time and may change in other cities depending on availability
Source: Myhelpline.com
Upgrading your car or buying a second car? Look for exchange offers, loyalty bonus offers
If you already own a car, you can check with the manufacturer if you are eligible for a loyalty bonus. Usually, the manufacturer offers loyalty bonuses to keep their existing customers with them.
If you already have a car, the dealer may give you exchange offers. A lot of people prefer exchange offers to escape the hassles of selling their old vehicles. However, they may not always yield the best value for the old vehicle.
To get a good deal on the exchange, you need to find out what is the right price for the car. You can check the resale value of your car from companies such as Cars24, Carwale, AckoDrive, and other used car apps. Once you have an estimate of its value, you can ask your dealer to match it. Compare all the offers and then take a decision.
Discounts on compact sedan cars
Car Model | Maximum Discount# | Details |
Honda Amaze | Rs 67,000 benefits | Up to Rs 25,000 cash + Rs 15,000 exchange bonus + Rs 3,000 corporate discount + Rs 4,000 loyalty. Additional Benefits: Additional Rs 20,000 corporate discount for select profile customers |
Hyundai Aura | Rs 10,000 cash | Additional Rs 10,000 exchange + Rs 3,000 corporate {Petrol)/Rs 20,000 cash (CNG)} |
Tata Tigor Petrol | Rs 35,000 cash | Additional Rs 15,000 exchange + Rs 5,000 corporate |
Tata Tigor CNG | Rs 50,000 cash | Rs 20,000 exchange + Rs 5,000 corporate — Old stock of single cylinder. In twin cylinder consumer discount offer reduced to Rs 20,000 |
#Discounts are valid till month-end
#These offers are applicable in Delhi. These offers are subject to change at any time and may change in other cities depending on availability
Source: Myhelpline.com
Financing your car: How to get the best car loan
How are you planning to finance your car? If you are thinking of taking a loan, several lenders offer attractive rates on auto loans during the festive season. Choosing the right car loan is not easy. Adhil Shetty, CEO, BankBazaar.com says, “Take the time to shop around and compare offers from banks, NBFCs, and the dealership. Get quotes from multiple sources and consider both the interest rate and the overall loan terms, including the duration of the loan and the prepayment options. Choosing a lender with more favorable terms can significantly reduce your overall car loan cost.”
“Opt for a loan tenor that aligns with your financial goals and capacity. A longer tenor may result in lower monthly payments, but often leads to higher overall interest costs, while a shorter tenor may mean higher monthly payments but can save significantly on interest. Choose a balance that suits your budget and minimises the total cost of the loan,” Shetty says.
Discounts on Mid SUV cars
Car Model | Maximum discount# | Details |
Toyota Hilux | Rs 5 lakh | Discount benefits offered by select Toyota dealers |
Mahindra XUV400 EV | Rs 3 lakh discount | |
Citroen C5 Aircross | Rs 2.5 lakh | Discount benefits offered by select Citroen dealers |
Hyundai Kona EV | Rs 2 lakh | Cash discount |
MG Zs EV | Prices slashed by up to Rs 2.3 lakh | |
Jeep Meridian | Up to Rs 1.9 lakh benefits | Rs 1.15 lakh cash discount + Rs 50,000 exchange + Rs 20,000 corporate |
VW Tiguan | Rs 1.85 lakh | Benefits |
Jeep Compass | Rs 1.5 lakh | Rs 85,000 cash discount + Rs 50,000 exchange + Rs 15,000 corporate |
MG Astor | Rs 1.5 lakh | Up to Rs 1 lakh cash + Rs 50,000 exchange on select model variants |
Skoda Kushaq | Up to Rs 1.5 lakh benefits | (Include Rs 40,000 exchange + Rs 25,000 corporate) |
Tata Safari & Harrier Pre Facelift | Up to Rs 1.5 lakh benefits | (Rs 75,000 on ADAS + Rs 50,000 exchange + corporate + dealer end offers) |
Citroen C3 Aircross | Rs 99,000 benefits | Benefits including 5 year AMC and warranty maintenance pack |
VW Taigun Topline | Rs 1 lakh benefits | |
Hyundai Creta | No official offers as of now, but select dealer showroom are offering discounts from there margins basis stock | |
Hyundai Alcazar | Rs 35,000 | Benefits |
#Discounts are valid till month-end
#These offers are applicable in Delhi. These offers are subject to change at any time and may change in other cities depending on availability
Source: Myhelpline.com
Several dealers also provide options to finance your car. It may be convenient as you do not have to shop for your auto loan but it comes with higher interest rates or added fees, says Amit Setia – Head of Car Loans, Capri Loans.
“Comparing dealer offers with banks or other lenders can reveal better terms. If the dealer’s terms align with or surpass other offers, it might be worthwhile. However, securing pre-approval from outside sources empowers buyers during negotiation, potentially leading to better rates. Careful consideration of repayment terms from various sources ensures the best financing choice,” he adds.
Freebies are never free
When buying a car, dealers may offer freebies like free accessories or insurance. “Understand that nothing comes for free, but you can definitely save by negotiating independently with the dealer and the lender,” says Chintan Panchmatiya, Founder of Switch My Loan.
Most experts advise purchasing insurance directly from insurers to save on the insurance premium, Panchmatiya adds. Even if the dealer offers you free insurance, that cost is usually adjusted somewhere. Check the premiums and terms and conditions carefully before finanlising the deal.
“However, extended warranties and annual maintenance contracts are important and help in reducing the cost of ownership especially in the premium segment,” he says.
Did you get the best deal? How to evaluate
To ensure that you have got the best deal, you need to compare the on-road price (final price) you will be paying and what inclusions are there in that price, says Chadha. “In some cases, the On Road Price may be the same between two deals but the inclusions and accessories may differ making one deal more expensive in the long run. Customers need to carefully compare the accessories they are getting with the car, the inclusions in the insurance as well as any hidden fees in the finance that may balloon the price of the car,” he adds.
Source Link