Focus on total ownership cost, not just price, when selecting vehicle

Higher upfront price with lower maintenance cost and higher resale value may prove economical

- HIMALI PATEL

Car dealerships are offering attractive deals owing to the goods and services tax (GST) rate cut and festival-season offers.

Maruti Suzuki, Hyundai, Tata Motors, Mahindra, and Kia have all announced significant price cuts. Many prospective buyers are flocking to showrooms. Here is a guide to help them get a good deal.

Late September to October is ideal for purchasing a car. “Dealers are under intense pressure to meet their quarterly and festival sales targets, giving you greater leverage in negotiations,” says Ravi Bhatia, president, JATO Dynamics India.

“Timing your purchase strategically towards the end of the month or quarter, when sales teams are under pressure to meet targets, improves your chances of getting additional benefits,” says Akhil Rathi, head - financial advisory, 1 Finance.

First, consider factors such as daily usage (in kilometres), type of driving (urban, highway, or mixed), parking constraints, and passenger load. “These factors will help you decide whether to buy a small hatchback, a sedan, or an SUV,” says Rathi. Fix a realistic on-road budget to narrow your choices.

Compare models on total ownership cost, including fuel efficiency, service charges, spare part pricing, and resale potential. “A car with a slightly higher upfront cost but lower maintenance cost and stronger resale value often proves cheaper in the long run,” says Rathi. Safety ratings should also be a key criterion.