Why is Diwali the Best Time to Buy a Car?

Buying a car is a significant milestone for many Indians. It is a dream that many of us aspire to achieve. We plan for months, sometimes years, to arrange the necessary funds and to decide the type of car we wish to purchase. We purchase big-ticket items like a car, mainly during auspicious occasions like Diwali, to bring good luck and prosperity into our lives. Moreover, Diwali is also the time when car dealers offer significant discounts and deals, making it one of the most favourable times to make big purchases. 

When purchasing a car, you can opt for a pre-owned four-wheeler as it offers significant savings without compromising the car’s quality or performance. Read on to know more about why Diwali is the best time to buy a used car:

Why Should You Buy a Pre-owned Car During Diwali Season?

Diwali has always been seen as an auspicious time to make important purchase decisions, like buying a car. Additionally, car dealerships come up with several exciting offers during this festive season to attract more consumers. Here is why you should consider purchasing your next car, especially a pre-owned one, during this festive season:

1. Special Discounts and Offers

Diwali is the best time to enjoy attractive discounts on almost every big-ticket purchase, which also applies to pre-owned cars. During the festive season, dealerships usually offer very attractive deals on used cars, thereby making it the best time to purchase your dream vehicle.

2. Gifts and Cashback

In addition to slashing car prices, many dealers offer cashback schemes and exciting gifts with car purchases during Diwali. Be it free accessories, such as seat covers, wheel covers, safety kits, etc., and extended warranties to bigger prizes through festive draws, you could get a lot of benefits by timing your used car purchase to coincide with the Diwali season.

3. Advantageous Trade-in Deals

Diwali is the perfect time if you are planning to exchange your existing car with a better pre-owned vehicle. Dealerships often offer generous exchange bonuses, meaning you can get the best possible deal on swapping your existing four-wheeler with a pre-owned car that promises better performance and comfort.

4. Affordable Interest Rates

Diwali is an excellent time to finance your pre-owned car purchase through loans, as dealerships frequently collaborate with lenders to offer attractive interest rates. Reduced down payments and special loan offers make buying your dream car easier without straining your finances.

5. Discount on Processing Fees

Many financial institutions waive second-hand car loan processing fees during the Diwali season. This means your used car loan will be cheaper overall, adding another layer of cost-effectiveness to your purchase.

Why Should You Choose a Second-hand Car?

Buying a used car during the Diwali season has additional financial benefits when compared to purchasing a new vehicle. Here is why:

1. Substantial Savings

Buying a used car, especially during the Diwali season, saves you a lot of money. With the festive season offering more sellers and competition in the market, you have greater negotiating power to strike a better deal. It often prompts dealerships to be more flexible with pricing.

In addition to the lower initial purchase price, the perks of special Diwali discounts, lower insurance premiums, and slower depreciation rates make the deal even sweeter.

2. Slower Depreciation

One of the biggest advantages of purchasing a pre-owned car is that it depreciates at a slower rate compared to a new vehicle. New cars lose anywhere between 5% to 15% of their value in the first year alone. However, since used cars have already undergone that depreciation, purchasing a second-hand car can help you get better value for your money.

3. Lower Registration Fees

In India, the registration fees for second-hand cars are much lower than for new cars. This further improves the affordability of a pre-owned car purchase during the Diwali season.

4. Lower Insurance Costs

Insurance premiums are generally lower for used cars, depending on the car’s age and value. This means your annual premiums will be much cheaper for a used car when compared to getting insurance coverage for a new car, adding another layer of savings.

5. Technologically Backed Certified Cars

Unlike uncertified offline dealers, certified used cars come with detailed reports on the car’s condition, accident history and usage. This transparency ensures you make a well-informed purchase, reducing the risk of buying a problematic vehicle.

6. Better Options Within Your Budget

Pre-owned cars come in a wide variety of models and price ranges. Whether you need a compact car, a luxury sedan or an SUV, you can purchase from a wider selection of second-hand cars at significantly lower prices than brand-new models. This makes it easier to find a car that fits your needs and budget.

7. Reliability with Certification

You get the added benefit of warranty and reliability when purchasing from certified used car dealers. Certified pre-owned cars undergo thorough inspections to ensure they are in good condition. Additionally, any repairs or maintenance that may arise are often covered under the warranty.

Should You Finance Your Used Car Purchase With a Pre-owned Car Loan?

Arranging the required funds to bring home your dream car, whether it is new or pre-owned, is not an easy task. This is where a second-hand car loan can come in handy. With Poonawalla Fincorp offering a used car loan with easy monthly instalments and higher repayment tenures, you can spread the cost of your vehicle over a longer period instead of paying the entire amount upfront. Furthermore, our Pre-owned Car Loan comes with minimal paperwork and quick loan disbursal, which allows you to get the necessary funds to buy a car without much delay.

Tips to Buy a Second-hand Car During Festival Season

If you are leaning towards purchasing a second-hand car during Diwali, keep these tips in mind to make a smart purchase:

1. Choose a Car That Suits You: Whether you need a sedan for city driving or an SUV for longer trips, make sure the vehicle you buy suits your daily requirements.

2. Set a Budget: Determine how much you are willing to spend and how much of the purchase you plan to finance with a Second-hand Car Loan. This will help streamline your search and ensure you stay within your budget.

3. Check the Car’s History and Vehicle Ownership Details: Always check the car’s history to know if it has been involved in accidents or has undergone significant repairs. Also, ensure that the person selling the car is the rightful owner to avoid potential legal issues in the future.

4. Compare Prices from Dealerships: Check prices offered by multiple dealers based on the car’s age, condition and market value to ensure you get a fair deal.

5. Research the Car Model: Research the model you are interested in to understand its features, reviews, and approximate pricing. This helps keep you well-informed when negotiating with dealers for a better price, especially during the Diwali season.

6. Review the Paperwork: Make sure the car’s papers are in order and match the vehicle’s registration details.

7. Transfer the Vehicle Registration and Insurance: Make sure the car’s registration and insurance are transferred to your name by completing the necessary formalities with the RTO.

8. Go for a Test Drive: Always take the car for a test drive to know its condition and comfort.

Also Read - 5 Things to Know Before Borrowing a Pre-Owned Car Loan

To Conclude

Diwali season presents the perfect opportunity to purchase a used car. With significant savings on both the purchase price and long-term costs like insurance and depreciation, a second-hand car allows you to enjoy the benefits of ownership without stretching your budget. Choose a Pre-owned Car Loan from Poonawalla Fincorp with lower interest rates and nominal charges to purchase a used car with lower interest rates and favourable conditions.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Pre-Owned Car Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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