The year 2021 was a unique one for the automobile sector. While consumer demand for new vehicles recovered from the market fluctuations of 2020, automakers were unable to match that demand due to various issues, resulting in rising costs for both new and used cars. Therefore, there are certain factors consumers should consider before buying a car in 2022. Let us discuss them in detail.
Factors to Consider Before Buying a Car
Figure Out the Best Time
The months of October to December are particularly favourable for buying a new automobile. This is because showrooms are frequently overwhelmed with outgoing models and have acquired a range of new varieties. As a result, the existing options are presented at appealing rates, allowing you to save a substantial amount of money and get the greatest deal on your new automobile.
Another important consideration in selecting the best pricing for your new automobile is to buy it when there are seasonal discounts such as diwali and christmas sales available.. As a result, you have a number of options to pick from when it comes to making a purchase.
Consider Both Loan and No- Loan Options
It is always advised to consider the option of car loan before buying a car.. Car loans come with a variety of interest rates and periods and are available from all major public and commercial institutions at extremely cheap rates. You will receive a range of perks when you apply for a vehicle loan, including a simplified dealership procedure and personalised EMIs.
Buying a car without a loan, on the other hand, may provide you with additional benefits such as debt protection, liability protection, and other loan-related issues. aloso, In terms of interest, you will not have to pay any additional money to the bank or NBFC.
Try to Get Maximum Discounts
Dealerships would rather sell you the automobile at a lower price than not sell it at all..As a result, you should try to negotiate the conditions and costs as much as possible before making the investment. Discussing the automobile's pricing might help you lower your car loan and save you money over the long term. If you're a bad negotiator, at the very least attempt to grab as many freebies as possible.
The MSRP (Manufacturer's Suggested Retail Price) is the amount paid by the dealership to the manufacturer for a certain automobile. This gives you an idea about the extent of discount you can avail. When you're discussing the price of a car with dealers, this knowledge comes in handy.
Effect of Pandemic on Automobile Industry
Production at original equipment manufacturers was halted as a result of the pandemic-induced shutdown. Furthermore, lower customer demand for passenger automobiles resulted in revenue losses and a serious financial crisis in the industry.
According to the Society of Indian Automobile Manufacturers, all vehicle categories had negative growth in FY 21 (2.24 percent decline in sales of passenger vehicles, 13.19 percent fall in sales of two-wheelers, 20.77 percent fall in sales of commercial vehicles, and 66.06 percent fall in sales of three-wheelers).
Despite fears of a new wave of the pandemic, the auto component business is 'cautiously hopeful' for growth in the current fiscal year, according to industry organisation ACMA. In April-September 2021, the automotive component sector generated ₹1.96 lakh crore (USD 26.6 billion), a 65 percent increase over the first half of the previous year.
Future of Electric Vehicles
An electric vehicle is one that runs on electricity rather than on power produced by burning a mixture of fuel and gases. As a result, an electric vehicle is being considered as a possible substitute for today's automobiles in the coming years to solve ecological concerns.
The EV industry in India has gained significant traction with the publication of the FAME India initiative, which intends to shift to e-mobility in view of rising international policy obligations and ecological degradation. Furthermore, India offers the greatest unexplored market in the world, notably for electric two-wheelers.
So far this fiscal year, almost 5,000 four-wheeler and 57,000 two-wheeler electric vehicles have been sold, up from 40,000 the previous year and 24,000 the year before. However, according to a research by consulting company RBSA Advisors, EV sales in India between 20-2021 accounted for only 1.3 percent of overall vehicle sales. According to RBSA, it will expand at a 90 percent CAGR this decade, reaching $150 billion by 2030.
What did the Union Budget 2022-23 have to say about the automobile industry?
Electric Vehicles benefit significantly in the form of efficiency-focused EV legislation, as climate change action and environmental sustainability become a primary priority for this budget. With the Battery as a Service approach, an emphasis on battery swapping policies is being highlighted to boost EV uptake in cities. This will aid in the development of system integration, making electric vehicles more inexpensive and affordable.
Purchasing a car is no longer considered a luxury, but rather a necessity. When it comes to buying a new automobile, consumers have a variety of options. One could be ecstatic at the prospect of buying an automobile because of the convenience it provides. It may, however, become a nightmare if not done correctly.