Before you sign the cheque it is important to know opinions and
views of people who are already using the same car (Read
Owner's Feedback). Asking friends or other people who have
used the car, is better than speaking to a car salesman. People
tend to have a biased opinion so make sure you talk to more than
one person.
Most car dealers offer you to test-drive a car
before you buy it. Driving a car is always better than watching
a hundred pictures and reading attractive brochures. You can get
a good feel of how the car performs by getting into the driver’s
seat, starting, driving, accelerating, turning, stopping and reversing.
Trained staff at the car dealerpoints can help
you understand essential aspects of routine and special maintenance
required. They can also explain the terms of the warranty offered
by the manufacturer.
Once you have finalized the car, you can get the
dealers Pro-forma invoice in your name. The proforma invoice
gives details of all the costs involved. The basic cost of the car,
the sales tax, the octroi if applicable, the RTO charges and the
Insurance amount.
The price you pay for your car comprises
of the following elements:
-
The F.O.R. price - This is the Ex’factory
price of the car
-
Transportation and Transit Insurance
- Cars manufactured outside Mumbai have to be transported (by
truck trailers of railway rakes) from the factory to the dealer’s
depot.
-
Depot / Stockyard charges - The cost
involved in stocking and maintaining the car before actual delivery
to the clients.
-
State Sales Tax - Maharashtra State
Government collects a Sales Tax of 10% on the F.O.R. price.
(Sales Tax charged varies from state to state. Maharashtra,
Karnataka, Kerala and Madras are at the top end -9 to 10 percent,
while Gujarat, Haryana, Calcutta, Goa are at low end with 3-4
percent. Earlier, several car owners registered their cars in
Gujarat, Haryana, Madya Pradesh etc. and saved a substantial
amount, as the sales tax in those states was lower, however
today the State Government is more stringent.)
-
Octroi - All cars registered within
the city’s municipal limits are subject to payment of octroi
to the Municipal Corporation. An octroi of 4% is levied on cars
registered in Mumbai city.
The above elements make the Ex-Showroom price of the car.
-
R.T.O - In Mumbai the R.T.O. now collects
lifetime tax (One Time Tax of 3.5% of Ex’Showroom price, for
individuals and 10.5% for Companies)
-
Insurance - All cars have to be insured
before taking delivery. Insurance amount can vary as per the
risk covered. Accessories like music systems can also be insured
by paying a little more premium. The insurance amount for a
comprehensive insurance policy works out roughly to 3.8% of
the showroom price.
GETTING A GOOD DEAL
Competition among manufacturers / dealers works
very vigorously. Dealers offer discounts, gifts, free accessories,
additional free car services etc. It makes good sense to call
two or more dealers before finalizing the best deal.
The Dealers services include the RTO Registration and the
Insurance policy for the car. Be careful while informing
the Name and Address in which the car is to be registered, as
corrections in spellings and rectifying omissions can be a pain
later. If you have owned a car earlier, you may prefer to use the
services of your existing insurance officer/agent.
While taking delivery of your car, it makes
sense to have a little extra time on hand. A rushed delivery
can cause you to spend a lot of time later, for having overlooked
minor fixes at the time of delivery.
Most cars are transported over long distances - from the production
plant / factory to the dealers showroom.
Although a thorough pre-delivery inspection is conducted, you can
spend some time checking the following:
The Instrument Panel - Check that the warning and indicator
lights, the speedometer, fuel gauge and other gauges work proper.
Check if the glove box lock works properly. Flick the wiper lever
and turn signal lever and see that they work in all positions.
The Car Insides - The headrest, the seats, and the doortrims
come with plastic covers and you can ask the dealer to help remove
them. See how the rear seats fold and how to adjust the front seats.
Check the interior lights. Put on the seat belts and adjust them properly.
Air Conditioning System - If the car is equipped with an A/C,
it makes good sense to check that it works properly for all the positions
of the A/C button. Check if the air comes out of all the vents provided.
Other Controls and Equipment - Check the doors, windows and
the locks and see if there are any odd squeaks and sounds. Check the
bonnet and the fuel cap lid cover levers.
Test the pressure while applying the hand brake and the pedal brake.
Lastly check the toolkit that comes with the car and ensure
all items are present.
Car stereos, window weather strips and hub-caps have been the all
time favorites, for petty thieves, and many new car owners have
been shocked to see them missing, soon after the car rolls out of
the showroom. The Dealer can secure them for you.
Most dealers conduct a comprehensive Pre-delivery inspection of
the car, and look into every minute details of the car before it
is delivered to you.
If you find anything broken, a cracked glass or scratched paint, you
should ask the dealer to repair the same before taking delivery of
the car. If the dealer cannot attend to your complaint and promises
to satisfy you in future, you make sure that you collect a written
note from the dealer, promising you to rectify the flaws, sometime
in future.
