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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