lalita dainik
by on October 21, 2021

Planning to buy your first luxury car in India? If you've already invested in a fixed deposit with the best interest rates, you're in a good financial situation to afford the car. Now you need to decide how to fund your purchase and what kind of luxury car is on your mind. To help you make an informed decision, here are 5 tips on purchasing your first luxury car in India.

Take a Loan Against Your Fixed Deposit

Check your fixed deposit tenure. Then use an online fixed deposit interest calculator to learn the maturity amount. The best bank for fixed deposits offers this online interest rate calculator on its official website. If the maturity amount and tenure cannot help finance the lumpsum payout, consider taking a loan against your FD. Choose a suitable repayment tenure. See if you can get a loan of up to three-fourths of the deposited amount. You may only have to pay slightly higher interest than that on the deposit. And you'll be financially armed to get your dream car!

Learn the Road Tax of Your State

Did you know that when you buy a new car, the road tax of the state gets added to its ex-showroom price? Yes. So, before you purchase a luxury car, it's a good idea to learn how much tax is levied by your state. Say, the percentage of road tax in your state is 10%. If the ex-showroom price of your chosen car is 1,00,00,000 INR, then you need to pay a road tax of 10,00,000 INR.

The other costs associated with your car will be insurance, maintenance, fuel consumption and repair costs.

Which Type of Luxury Car Do You Want?

These cars come in various sizes, colours, and overall looks. Decide on these factors. As per your family size, see if you want a sports car, hatchback, SUV or sedan. Now think about the driving capability of the car. Accordingly, opt for all-wheel, rear-wheel, or front-wheel drive.

What Kind of Engine Do You Prefer?

After deciding on the type of luxury car you're looking for, think about the fuel and engine options. You can go for diesel, petrol, hybrid, or even electric powertrains. Each option comes with its own pros and cons ranging from the cost of fuel to mileage. Don't forget to decide on the kind of transmission you prefer: manual, automatic, dual-clutch transmission (DCT), or continuously variable transmission (CVT).

Consider the Interiors

According to your budget, you can choose a car with sophisticated wood and leather interiors to the latest electronic components. There should also be essential safety features. Besides, consider other features that can uplift the overall feel of the car. These may include:

A good sound system

Touchscreen infotainment displays

Height-adjustable and ventilated seats

Automatic climate-control systems

The luxury car you buy has to face the challenges of broken roads, potholes and even harsh weather in India. So, try to get the maximum warranty on it. If the loan taken against the fixed deposit cannot finance your purchase completely, consider choosing a top-up loan of the required amount.


Posted in: Finance
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