The thrill and wonder of buying your dream car are indescribable. Before you get hold of the keys, plan smartly and research how to buy a car responsibly, based on your finances, needs, financing suitability, and long-term commitment.

In this comprehensive car buying guide, we shall explore the top factors to consider before buying a car and find expert tips for first-time car buyers.

Create a Realistic Budget

If you're wondering how, you can buy a car, the first step is to create a realistic budget. Here are the top factors to consider before buying a car:

Total Cost of Ownership

The total cost of purchasing a car isn’t just the showroom price quoted to you by the salesperson. It can include other charges .

Down Payment against Loan Financing

You must arrange for at least a 10% down payment. If you can afford to arrange for a higher amount of down payment, it will benefit you with lower EMIs. SBI offers financing of up to 100% of the on-road price under its SBI New Car Loan Scheme.

Car Loan and EMI Planning

When purchasing a car, most buyers opt for financing through car loans to make their dream purchase affordable. Understanding your EMI obligations is crucial for financial planning and ensuring you don't overstretch your budget.

SBI's car loan EMI calculator and financing features via the YONO SBI app help you plan your repayment strategy in advance. You can:

• Calculate monthly EMIs based on loan amount, interest rate, and tenure
• Compare different loan scenarios to find the most suitable option
• Get pre-approved loan limits based on your income and credit profile
• Apply for car loans digitally with minimal documentation

This advance planning ensures you choose a car and loan combination that fits comfortably within your monthly budget.

Other Costs to Be Considered:

• On-road Charges
• Insurance Premiums
• Maintenance & Servicing Costs
• Unplanned expenses like tyre replacement or accessory upgrades
• Fuel Efficiency
• Registration Charges

New vs. Used Car: Which is Better?

Although new and used cars both come with their fair share of advantages and disadvantages, the best choice would depend on your lifestyle, your budget, and how long you intend to own the car. Here is a comparison to help guide you through your decision:

Pro Tip: Whether new or used, SBI has created auto loan schemes to finance your decision. Scan for car loan eligibility in India, apply online via the YONO SBI app.

How To Choose the Right Car

Choosing a suitable model is half the work done:

• Evaluate Your Requirements: For city commute and traffic jams, compact hatchbacks are fuel-efficient and easy to park. For highway road trips and long roads, small SUVs or sedans are best for extra space and power.
• Performance vs. Mileage: Turbocharged petrol engines offer an exhilarating drive at a higher expense, while naturally aspirated ones save fuel.
• Safety Features: Choose cars with a minimum 4-star GNCAP rating, dual front airbags, Advanced Driver Assistance Systems, ABS with EBD, ESC, and rear parking sensors.

Financing Your Dream Car

Whether you're buying a brand-new or used car, SBI offers some of the superior consumer-friendly car loan products in India.

Test Drive & Inspection

A test drive is your firsthand experience of the car you're about to live with.

What to Observe:

• Engine performance and comfort
• Noise levels and tech features

For Used Cars: Verify RTO fitness certificate, service records, and insurance documents. SBI recommends using partner dealerships for proper inspection.

Insurance & Registration Process

Registration: Your dealer handles RTO paperwork. Ensure you receive the permanent number plate, road tax receipt, and RC smart card.

Insurance: SBI General Insurance offers comprehensive motor insurance policies. Compare and buy policies easily on the YONO SBI App.

Negotiation & Best Buying Time

• Make the most of price discounts or free accessories when dealers need to meet outstanding targets.
• Look for the best deals between Diwali, Navratri, and end-of-year. You can get the benefit of lower interest rates, a reduction in loan processing fees.
• Look for SBI's festive automobile finance offers. YONO users can get pre-approved car loan ceilings based on their transaction history.

Resale Value & Long-Term Maintenance

Here are some tips for first-time car buyers:

• Proper servicing in authorised workshops with records brings a higher valuation on resale
• Consider taking long-term warranties and annual maintenance contracts, especially for cars you plan to keep for over 5 years

Buy Your Dream Car Now!

Purchasing the right car is all about smart planning, intelligent financing, and quality maintenance.

SBI offers you full-fledged tools, from loan EMI calculators to paperless application on the YONO App, to make your car buying experience smoother. Whether you need to find the best cars under ₹10 lakhs India or calculate your car loan eligibility, count on SBI to guide you financially.

Drive into your future with confidence, knowing that you have the right car, the right financing, and the right plan behind you .

Disclaimer: Bank safely online! Interact only with trusted individuals and beware of money transfers for any suspicious offers. Your financial security is our priority!