Planning to purchase a car this festive season? It can actually be a daunting task give that all family members have a preference and choice. Moreover, if one is a first time buyer, the purchase can be even more tasking. Following is the list of check list that one must follow while Planning to buy the car.

Decide on the budget

Budget should be the first task to be undertaken as soon as you have decided to buy a car. Most of the cars since are purchased through the proceeds from car loans, it becomes important to work out the budget. Apart from the down payment that would be required to be made, a monthly obligation of the installment towards the car loan will need to be factored. Since it is going to be a long term commitment (generally the car loans are taken for a term of 3 to 5 years) it becomes highly important to be sure on how much will you be able to afford from your current earnings. Without a budget you may find it difficult the vehicle. The first step has to be budget followed by the choosing the car.

Frequency and type of vehicle usage –

The type of usage would play an important role in deciding the kind of car you would want to buy. A few factors that would impact the decision are

• Size of family. In case of a large family, you may want to go in for a 7 or 8 seater car
• Frequency of usage. The car is to be used for daily commute or maybe only on weekends; if daily utilization is going to be there then the mileage that it would clock on an average. In case of high usage a highbrid car with more fuel economy may be a better option. Even if the family is large and the car is going to be used only by one or two people for office commute then a smaller car with better fuel efficiency may be a better idea. For weekends, maybe hiring a bigger cab as and when required could be one option to weigh.

New or second hand

There are lot of very good second hand cards sold directly by the car manufacturers directly. It may be a good idea to explore the options since these cards also come with a warranty as the new car would. The depreciation on the second hand car also would be lower than the new car and may be able to get a better resale value than the new car if you may wish to change it over a period of time.

Car make and the mode

There are multiple websites that can help you compare various makes and models on the features and cost. Decide on what you wish to buy since many a times the buyer gets into the last minute impulse of upgrading the car. This can lead to putting stress on the finances. So before you decide, explore the features that you would want in the car and then do not deviate unless another model is within your range of budget and is extending better value.

Maintenance cost

This is another important factor to consider while deciding the car that you would want to purchase. The one time cost may be affordable but the maintenance cost may be higher than other variants. Also, while taking a decision, do factor that the maintenance will also include the yearly insurance premium and not only the wear and tear.

Analyze the worth of offers and discounts

Various manufacturers extend offers and discounts to boost the sales. Offer like free or Re 1 insurance for first year, loyalty exchange free accessories etc are commonplace. However, it is worth evaluating the over all impact on the cost of vehicle over long term against these offer.

Check the credit score

If a loan is to be taken, then it is worthwhile to check the credit report. You are entitled to free CIBIL score so it makes all the more sense to obtain the report and check it before you apply for that car loan. A low score can lead to rejection of the loan, so you may want to work over it and correct the same before applying for one.

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