In this post, I am discussing the common things to keep in mind to sidestep car dealer traps in 2024. Buying a new car is a huge deal for everyone. This is particularly true for people who are doing this for the first time. India is a country which has an increasing number of first car buyers as the living standards of a vast majority of popular increase. In such scenarios, it is quite common for people to fall for some common traps by dealerships to get extra money. Let us take a look at the details of these supposed traps and find ways to avoid them.
Car Dealer Traps in 2024
This video comes from Mycarhelpline. com on YouTube. The host highlights numerous circumstances which could arise while you go out to purchase a new car. Here are the details of these cases:
FASTag Scam
Car dealerships generally charge Rs 600 for a new FASTag on a new car. While this might seem normal to most people, we must understand that dealers have tie-ups with banks. But banks often run campaigns where they offer new FASTags directly to the customers where they waive-off the Tag Issuance Fee and Tag Security Deposit fee. This is because they get a new customer. However, if you buy FASTag from the dealership, it might not tell you about the fee waiver. Hence, you are paying this unnecessarily to the dealership.
Loan Processing Fee
The next critical step while purchasing a new car is a loan. Most customers opt for loans to buy a new car. Apart from finalizing the amount, tenure, EMI and interest rate details, you must also take a look at the loan processing fee. Again, it is possible that the dealership asks on your behalf to the bank to waive off or reduce the processing fee. This is possible if you are an old customer of the bank, have a clean repayment history or have good relations with the bank. However, the dealership might not tell you about the discount on the processing fee. You will end up paying this fee which will go directly to the dealer. Hence, make sure to clarify this detail before signing the loan documents.
Essential Accessory Kit
Another key area that car buyers must consider is the essential accessory kit. Many dealerships ask customers to purchase additional accessories by calling them essential. However, there is no such thing. All accessories are optional. The dealer staff can’t force you into buying accessories for your car. In fact, they have targets to meet every month which is why they portray the accessories package as compulsory. Not to mention, the costs of these accessories are generally on the higher side in comparison to aftermarket shops. You can save money by rejecting this trap.
Insurance Traps
The next crucial aspect of buying a new car is insurance. We know that the law mandates every car on the road to have valid insurance. In fact, when buying a new car, a large chunk of expenses comes from insurance. More often than not, carmakers offer insurance themselves. However, you must know that you are not bound to take the insurance from the dealer itself. You are free to browse on the internet about the prevailing prices. We know how easy it has become today to buy insurance online. You can compare premiums, covers, IDVs, etc. to come up with the best option. In fact, after doing this research, you can take the details to the dealership and leverage that to get more discounts on the premium amount. They have some offers due to their tie-ups with insurance companies. If you push them enough, they will offer some benefit to you. Just make sure that you don’t compromise on IDV (Insured Declared Value), premium amount, voluntary deductions and covers.
Extended Warranty
While purchasing a new vehicle, car companies give the buyers an option to purchase an extended warranty. The standard warranty on most cars in India is 3 years. However, it is possible to buy an extended warranty in the initial few days of getting a new car. This could generally be for 4th and 5th year. But the thing you must take care of in this case is whether the package mentions an unlimited kilometres warranty or some definite kilometres. For instance, if a company offers a 5-year / 1,00,000 km warranty, you should calculate if you would drive your car more than this. For most people, this is a threshold that they will never cross. Hence, paying a premium for this is better than paying a higher premium for 5 years / unlimited kilometres. You can easily save some money here.
Handling Charges
Finally, it is crucial to remember that many dealerships charge handling fees from customers during the time of the delivery. The host in the video mentions that he has been raising awareness about this issue for a long time now. It is the responsibility of the dealership to keep inventory at a stockyard and bring it to the showrooms for display and sale. They can’t charge handling fees from the customers for it. These are some key car dealer traps that you must swear to avoid in 2024.
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