Buying your dream car is a huge decision and involves much more than arranging for funds. There are several models launched by different manufacturers and you will need to shortlist the ones that meet your requirements.
Before deciding, you must remember that cars are depreciating assets and you may switch to a better model after some years. Therefore, opting for a brand that has a higher resale value is advisable. You will also have to choose from diesel, petrol, compressed natural gas (CNG), and electric vehicles. To make the process easier, you may consider buying a car from a reliable dealer.
In addition to the price, you must know about the different applicable taxes. Here are some charges that you need to pay while buying a car.
- Ex-showroom price
Ex-factory price is paid by the dealer to the manufacturers. On the other hand, ex-showroom price is what you pay for the car. It is inclusive of charges like dealer margins, state taxes, transportation, and others. Consider these while you apply for a car loan to ensure you do not fall short of funds.
- On-road price
This is the final price you pay for driving the car from the dealership. Some of the charges included are as follows:
- Registration charges
Every new car must be registered to procure a unique registration number. Registration charges vary from one model to another and include getting the license plate for your car.
- Lifetime road tax
This tax is levied for driving the car on public roads. It is primarily paid to the government for the repairs and maintenance of the roads.
- Dealer handling charges
Handling charges are paid to the dealership for safe transportation of the car from the warehouse to the showroom. These include basic fuel expenses, number plate charges, and much more.
- Add-on accessories
Most cars come with standard accessories; however, if you want add-ons, you will have to pay extra for them. So, when you apply for a car loan online, it is important to check if the lenders include these additional costs.
- Extended warranty
Manufacturers offer some warranties, but you may choose an extended warranty by paying an additional cost. This can increase the resale price and help with eliminating unexpected expenses. While availing of car finance, you may determine if the lender includes this extra cost.
Automobile loans are offered by most banks and non-banking financial companies (NBFCs) like Mahindra Finance. These loans are available at affordable interest rates and flexible repayment tenure. Check out the car loan eligibility criteria and apply for one from Mahindra Finance now.