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You have dreamed long enough of the car you saw at the showroom or the one that zipped past you on the road. Now is the time to buy your own set of wheels! With companies aggressively marketing car loan schemes by offering innovative and tempting offers, organized and institutional car finance seems to have come of age in India. As a result, getting a car loan has never been as easy.
There are various banks as well as many Non Banking Financial Companies(NBFCs) offering car finance schemes. Several of the financiers have tied up with manufacturers to offer competitive finance scheme on the respective manufacturers’ products. It is through tie-ups like these that manufacturers pass discounts to its customers that finally translate into a lower instalment payments. With so many schemes to choose from, you need to be careful to select one that suits you best.

Here are a few popular car loan schemes available in India:

• Margin Money Scheme
• Security Deposit Scheme
• Advanced EMI Scheme
• Hire Purchase Scheme
• Lease Financing Purchase

You have recently bought a car and are looking forward to enjoying long drives in it. Before, you set forth on one, do you have it covered? Under the provisions of Motor Vehicles Act all the vehicles which are plying in public places need to have an insurance policy. Hence, it is obligatory on your part to get your car insured. There are two types of policies available for cars - third party insurance -policy A and comprehensive insurance policy- policy B. Although legal requirement is met by policy A, its recommended to go in for comprehensive insurance policy for your own car.

After the opening up of the Insurance sector in India, there are a plethora of options for getting your car insured. Here’s the list of top ten car insurers both in the public as well as the private sector:

• National Insurance Company Ltd.
• The New India Assurance Co. Ltd.
• The Oriental Insurance Company Ltd.
• United India Insurance Co. Ltd.
• Bajaj Allianz General Insurance
• ICICI Lombard
• IFFCO-TOKIO
• Reliance General Insurance
• HDFC General Insurance
• Tata AIG General Insurance Company Limited

So you consider yourself a novice at cars and have just learnt driving? How about refining your driving skills to gain the necessary confidence. Or you might belong to the tribe that craves for a luxury car but can’t afford to buy a new one. In either scenario a “Used Car” could be an ideal choice. The used car segment in the country had been largely unorganised before Car Manufacturers entered it to offer the necessary choice, convenience and transparency to make an informed buy or sale. Now, of course it has emerged as a big market with Certified Used Cars including warranties and with attractive finance options being available on them.
Still with me and ready for a Used Car! Let me also tell you about a few disadvantages of buying a used car:
Used cars will definitely cost you more to maintain if you compare maintainance costs with a new car. You may have to go for replacement of old tyres, battery, clutch plate etc. Used cars have low reliability and they are susceptible to frequent breakdowns. New cars tend to have advanced and more safety features as compared to old cars.
Well, the advantages outnumber the limitations by a huge margin and if you follow a few tips you can get the best bargain for the Used Car you’re buying.

• You may already have a budget in mind so it would be better to have a general idea of the price at which vehicles of the same age and type are available second hand. There are a few websites where sellers list their cars as well as photographs and detailed descriptions and its the easiest and fastest way to find the car of your dreams (or at least its price!). Also keep in mind that the cost of repairing the model, the safety aspects of this particular model and how much the car will cost to insure. You would also need to be flexible. If you’re set on one model, in a specific color, with a certain mileage or specification you may find it hard to get a bargain as you’re focusing on a narrow market.
• Once you have found the right car for yourself, you could communicate with the seller to find more about that car. It is essential that you get to see all documents related to the history of cars. You need to be sure about two things: First and foremost that its not a stolen car. The car’s Engine No. and the Chassis No. should be verified with that shown in the RC Book. If the car has met with an accident which involved changing the cars chassis, then the RC Book would have a noting of the new chassis no. You should also make sure that the person who is selling the car actually owns it, and is not trying to sell a leased vehicle.
  Next up ensure there are no outstanding liens against the car (for example: an unpaid loan). If there is still an outstanding lien, the car could be repossessed - even if you paid full price to the seller. If it was bought on finance by the seller the following documents would be required for you:
  1. NOC (No Objection Certificate): NOC issued by the finance company. This document ensures that the
  finance company has no claim on the car anymore.
  2. Form 35: A copy of this form duly signed by the financier is also needed.
  Try to also to have an idea of how the car has been used (single hand, daily commuting etc.). Get the car inspected by a car mechanic. In case you are buying it from a dealer, you might not be able to do that. In any case, you can still do some inspection on your own. The following things ought to be kept in mind while inspecting the car.
  * The engine should idle smoothly without surging or sputtering, and accelerate from standstill without bucking or hesitating.
  * Inspect the chassis of the car. The bodyline will give you an indication whether the car has met an accident or not.
  * Look for signs of repainting. Check whether all the body parts are of same colour. Open the trunk, hood and doors. Look for paint specs or over spray-a telltale sign that all or part of the vehicle has been repainted.
  * Check the wheel alignment of cars. Uneven wear and tear of tyres-balding on the sides or in the middle-indicate poor alignment.
  * Check the condition of battery.
  * Check whether all the headlights and indicators are working properly.
  * Check air conditioning for proper operation. Sufficiently heat up the engine to test the efficiency of air conditioner. Check the operations of defroster, heater and fan.
• Next come the Test Drive:
  * Go for a thorough test drive and observe your comfort levels during the ride.
  * Does the steering wheel vibrate?
  * The engine should idle smoothly without clattering or metallic sounds, or sharp hissing, in the engine
  compartment. Normal sound is smooth whirring of belts and fan.
  * Check the condition of clutch plates.
  * Study the responsiveness of the Brakes.
• Now you can negotiate the price. It would obviously depend upon the condition of the vehicle. You would also need to ensure that other paperwork of the vehicle is in order before finalizing the deal as it could affect the actual cost of the vehicle.
  * Taxation Book (Tax Certificate / TC Book): This document shows the status of tax paid. The RTO tax is a once in a lifetime tax and should have been paid by the original owner of the car. If the owner of the car has not paid it, it can add up to double digits in thousands, which you will have to ultimately bear.
  * Insurance: Insist on the insurance papers, as these papers are mandatory for any transfer by the RTO. Premium for Insurance is paid on a regular basis and it is advisable to check the due date. Also, ensure transfer of the insurance papers to your name.
  * Invoice: Do not forget to get the original invoice of the car from the original owner. You can know details like engine no., chassis no., date of delivery, delivery dealer and whether the car was financed or not.
  * PUC Certificate: Every car needs a valid PUC certificate. PUC Certificate is valid for a period of 1 year for all new cars and subsequently a certificate has to obtained every six months.
• Transferring ownership of the Used Car that you’ve bought comes next. The original owner (Transferer) who is selling the car, must inform the RTO with which the car was registered about this transfer, by sending a letter with information about the new owner (Transferee) within a period of 14 days. In case the new owner falls in jurisdiction of another RTO, then the owner has to inform this RTO by sending a similar letter. The following documents have to be submitted to the RTO to effect the transfer of ownership of the car:
  * Form “TCA” - Intimation of transfer by Transferee (Buyer)
  * Form “TCR” - Intimation of transfer by Transferor (Seller)
  * Form No.29 - Notice of transfer of ownership of vehicle. This form is used to notify the RTO ‘transfer of ownership’ of the car and to obtain confirmation from the RTO.
  * Form No.30 - Report of transfer of ownership of vehicle.
  * Valid Insurance policy
  * PUC Certificate
  * Address proof of the Transferee (Buyer)
  * Evidence of payment of all taxes up-to-date.
  * Form No.28 - Application for N.O.C. and grant of certificate. This form is used to apply for NOC from the RTO for transfer of the vehicle to another RTO’s jurisdiction. This is required when you shift the registration of the car from the jurisdiction of one RTO to another RTO.

These are certainly good times to be in India, specially if you’re keen on buying a car. If you’ve been postponing your car purchase up till now, you ought to make a quick decision on the model that you plan to buy. To make buying more attractive, car companies are offering huge discounts this month. Along with the discounts has come the announcement that prices are all set to go north in the New Year with the impending price revision. Decided upon the model and ready to visit the showroom? Hold on for a minute! Whether it’s your first car, or you’re a seasoned buyer, its always good to take some expert advice. Just consider this. Is the car you’ve decide to buy suitable for your needs? It may sound like a simple question - but it is so easy to be distracted by flash or impractical cars when you’re looking for a new car. Here’s a six-step plan that guides you through every aspect of the car-buying experience, showing you how to simplify the process, find key information, and take control of the negotiations with the dealer.

• The first step (and you might have already done it!) is of course finalizing the exact car model you want to buy. I’m emphasizing upon it because you need to prioritize what you really need in a car. Is it space or speed? Looks or practicality? There’s no point buying a roadster if you want to carry your family of 4. Likewise, why buy a big clumsy off-roader if you’re a city dweller? Why consider mileage a top-priority while you don’t travel even 10 kms a day? A petrol car or diesel car? Also don’t fall in love with a particular model! Since you’re spending lakhs of rupees (or more!) becoming infatuated with a single model which blinds you to alternative vehicles that may be better for your needs, is hardly a good idea.
• Next up should be finding out what incentives and rebates are available from the manufacturer on the car model you want to buy. As I have already pointed out, currently there are huge discounts on offer. It may be because automakers usually face a slump in sales during December as customers prefer to buy vehicles in January and improve re-sale value at a later date.
• Now comes the crucial car financing part. With so many financing options to choose from car finance can become complex because of the financing deal between the car dealer and the bank. First decide the amount of vehicle loan you need. Suppose the car costs Rs 8 lakh on the road and if you are ready to make a down payment of Rs 2 lakh, then freeze your loan requirements at Rs 6 lakh. Interest rates that you get also depend on the loan amount. Next ask around for preliminary quotes for the given loan amount for the given car and find out the lowest EMIs that are offered for this loan amount.
• After this you have to negotiate the exact price. For this carry out a survey of different dealers to see if you can get a better price. It is quite possible that some dealers may have a special offer on the model you desire.
• Now visit showroom to take a test drive. It’s important before finalizing the deal to get the feel of the car. Make sure that you are comfortable and satisfied with the car. Check that there is enough leg space, luggage space, steering is not too heavy et al. You should also inspect the car for dents, dings and scratches before taking final delivery
• Finalizing the deal and signing the paperwork: As buyer of the car you need to ensure that all the legal forms should be filled in completely and submitted to the right authorities. You have to register the car with the Regional Transport Office. Following documents are required to be submitted to the RTO:
  * Application for new car registration or Form 20
  * Photocopy of the invoice, insurance policy, ration card or telephone bill as proof of address.
  * Original Sale Certificate or Form No 23, Sales Tax Receipt, Octroi Receipt
  * Pollution Under Control Certificate from the manufacturer or Form No 22
  * Letter from the financier, in case you have taken a loan to purchase a car, addressed to the RTO asking them to endorse their lien on your car registration certificate book or Form No 34
  * Your PAN number
  * Imprint of your car’s Chassis Number

After the figures of the festive season sales announced by Auto majors recently, here come the findings of study titled ‘2007 Four-Wheeler Total Customer Satisfaction’ conducted by TNS Automotive. The study represents responses of more than 7,600 new car buyers covering over 60 models. It provides a measure of satisfaction and loyalty a given model enjoys with its customers, considering customer evaluations of sales satisfaction, product quality, vehicle performance and design, aftersales service, brand image, and cost-of-ownership. According to the survey, the new models launched from the General Motors, Mahindra Renault and Maruti have been able to delight their customers with Chevrolet Aveo U-VA, Mahindra Renault Logan and Swift diesel finishing on the top of their respective segments. Here’s the list of segment wise toppers:

Maruti Alto ——— ‘Entry Compact’
Hyundai Santro ——— ’Premium Compact’
Chevrolet Aveo U-VA ——— ’Upper Premium Compact’
Maruti Swift Diesel ——— ’Small Car – Diesel’
Hyundai Accent Petrol ——— ’Entry Midsize’
Honda City ——— ’Midsize’
Skoda Octavia ——— ’Premium Midsize’
Mahindra Renault Logan Diesel ——— ‘Midsize Car– Diesel’
Honda Accord ——— ’Entry Luxury’
Toyota Innova & Mahindra Scorpio (tied) ——— ’SUV’
Honda CRV ——— ‘Premium SUV’

The Maruti Alto finds extremely high satisfaction levels across all product and customer service areas. As pointed out in my last article it created a record in terms of number of cars sold for a model in a month, this November. What the secret behind Alto’s success? Fuel efficiency is one selling point apart from its price. The 250,000-rupee best selling model from Maruti, can go as far as 18.3 kilometers on a liter of petrol in highway driving, according to Autocar India magazine. Maruti also boasts the most dealerships in India, with 561 as of Oct. 31, more than double the total from five years earlier. This could be another factor as your car can be repaired wherever you are in the country with the presence of a strong dealer network across the nation. This is crucial, as roads(still!) are rough in India and cars often get damaged.
Other models from the Maruti stable also keep posting robust sales growth benefiting from the brand loyalty that Maruti-Suzuki enjoys in India. Its 24 years of carmaking here gives it an edge in manufacturing as well as sales. GM, Honda and others rely mostly on imported parts at their Indian assembly plants, while Maruti-Suzuki buys from local and Japanese factories. Maruti-Suzuki loyalty was evident in New Delhi’s southern suburb of Gurgaon recently during the morning rush hour. Stuck in a traffic jam, almost 70 percent of the cars counted by “yours truly” were made by Maruti!

We are a nation of 1.1 billion where only seven in 1000 people own cars. The Indian economy has clocked an average annual growth rate of 8.6 % consistently since 2003. Such phenomenal growth has driven up wages, thereby making autos more affordable. The country’s annual passenger-car sales more than doubled in the past five years to 1.076 million through March 31, according to the Society of Indian Automobile Manufacturers. That total may triple to 3 million by 2015, the government estimates.
India is all set to become the fastest growing car sales market in the world and its the small cars which are seen pushing up the sales. The Government on its part is helping their cause as cars of less than 4 metres in length enjoy tax breaks. Its no surprise then that they made up nearly 71 percent of the 675,499 cars sold between April and October this year.
Car sales figures released by Auto majors for November 2007 vindicate this trend. Car market leader Maruti Suzuki totted up its highest ever domestic sales of 65,216 vehicles this November and its tally is up by 26.6% over last year figures for the same month. Do I need to tell you which was the largest selling car from Maruti’s stable? The answer is obvious, its the Alto, which recorded its highest ever domestic sales of 22,784 vehicles.
Even the country’s largest passenger car exporter Hyundai Motor India Ltd said its sales, including exports, rose by 16.1 pct to 28,944 units riding on its successful debutante, the i10, which is yet another offering in the small cars segment. According to the company, since its launch in end-October, the i10 has sold over 10,000 units. General Motors India also maintained its growth curve by clocking a whopping 110% increase in sales at 5,356 units in November 2007 against 2,554 units in the same month last year. 1426 units out of the total have been the small car Chevrolet Spark and 1670 units of Chevrolet Aveo and Aveo U-VA.