- Date : 09/10/2019
- Read: 4 mins
Find out what makes the festive season the best time to buy a car. With slow demand, you can expect numerous attractive offers on cars this festive season.
The upcoming season of festivities is the ideal time for fun and merriment. It is considered to be an auspicious time for embarking on new beginnings and journeys. It is also the time when new businesses are started, and new purchases are made.
Consequently, this period has become synonymous with deals and discounts offered by sellers and brands. If you are planning to buy a car, the festive season up until the turn of the New Year is the best time to do so. There are many ways in which you stand to benefit if you choose to buy a car during the festive season.
Discounts: Carmakers offer heavy discounts during the period approaching the year-end. They anticipate an increase in demand and therefore target to finish the year with strong sales numbers. They offer a cash discount as well as other discounts to draw attention. These can be in the form of corporate discounts and cash vouchers as well. This season automakers are offering discounts of over Rs 1 lakh on selected models. Sections of the media are claiming that all-time high discounts are being offered to car buyers. Discounts are also being offered to special categories of buyers like defence personnel and government employees. Members of special groups can benefit from such additional discounts and offers.
Accessories and benefits: This season, you can get accessories worth Rs 5,000 if you purchase the Mahindra KUV100 and TUV300. Several automakers are offering extended and additional warranties. Five-year roadside assistance is being offered on Nissan Kicks while Honda is offering free insurance on the purchase of Amaze. The latter is particularly helpful for first-time buyers who get a year to understand the nuances of car insurance policy, like IDV, IDV meaning and significance, add-on covers, third-party liability etc. (IDV stands for Insured Declared Value)
Loyalty exchange bonus: Loyalty and exchange bonuses are popular offers that automakers give out. In the case of exchanges, higher bonuses are given if both the old and the new cars belong to the same auto manufacturer. As expected offers are more for older brands or outgoing cars, like Maruti’s BS4 diesel cars which will be discontinued at the end of the financial year.
New Launches: This is the time of the year when buyers and market watchers eagerly await new car launches. This festive season will see the launch of new cars like Maruti S Presso, Tata Altroz, and Renault Triber as well as cars from new entrants like MG and Kia. New look Renault Kwid and Hyundai Elantra will also make an appearance during this period. Overall over a dozen new cars and two-wheelers are being launched during this festive season starting from Onam up until Diwali.
Loan deals: Leading banks offer attractive loan schemes in anticipation of a rush in demand. SBI, for example, has announced the waiver of processing fee on car loans. Loans are available for up to 90% of the car’s on-road price. These loans also come with interest rates which are as low as 8.7% with an assurance of no escalation in the rate of interest. Further, the bank is also offering a concession of 25 bps on the interest rate to customers who apply for loan digitally.
It must be mentioned that the auto industry is going through a dry spell. This July saw a 31% slide in sales, which was a two-decade low. Several automakers are manufacturing on reduced capacity due to lack of demand. Therefore, they would be keen to push for a recovery in sales by coming up with attractive offers to stir up the demand. Hence, this festive period is an ideal time to buy a new car. Take a look at what you need to do next after you buy a brand new car.