Diwali is also celebrated to worship wealth and prosperity in India. This is the reason that many car buyers buy their vehicle around Diwali to mark the auspicious occasion.
To drive more sales, carmakers also offer discounts and benefits during the festive season. But are these offers worth taking? Are you really getting a cheap bargain? Or is it better to wait for one more month and buy around the end of the year when dealers will offer deep discounts to clear their 2020 inventory.
But is it the right time to buy a car? CarInfo will help you figure out.
If you need a car right now to meet your commuting requirements post COVID-19 then go ahead and buy one. But if you were especially waiting for Diwali to save some money through festive discounts then you need to take a step back.
Top selling brands like Maruti Suzuki and Hyundai are only offering discounts up to Rs 50,000. And these discounts are only offered on a few low selling models. On top of that, these discounts are normally available round the year. Hence, there is nothing additional to save.
If your plan is to buy high selling models like Maruti Baleno, Hyundai Grand i10, or Honda City then you might not get a lucrative deal because these models are already in high demand. Eye-popping lucrative offers are only available on low selling models.
For instance, Maruti, Toyota, and Tata are offering discounts up to 70,000 on Ertiga, Innova, and Harrier respectively. However, you can get a discount of over Rs 3,00,000 on low selling Mahindra Alturas and up to Rs 2,50,000 on Honda Civic.
December is better than Diwali to buy a new car
If you are not in a hurry to buy a car then it is worth waiting till December. This is the time when dealers are itching to clear their current year's inventory before models of fresh year arrive. Dealers are also hustling to meet their sales target.
If you contact car dealer in the second half of December then you can easily negotiate extra cash discount, freebies, extended warranty, or a complimentary roadside assistance. But it is not same for all the models.
No major discounts on top selling models
Discounts vary depending upon the brand, model, and trim. If you are planning to own a model that constantly been a best seller for the brand then there are lesser chances of lucrative discounts or benefits. Also, cars that have a waiting period will not offer you a sweet deal. For example, Hyundai Venue and Mahindra Thar enjoy a long waiting period due to strong demand. Hence, there are no lucrative deals on these models.
Is there any effect on resale value if you buy a car in December?
Let's be logical here. Diwali is in November and if you buy a car in December, one month will not degrade the price of your car significantly. On top of that, if you plan to retain a car for at least 5 to 7 years then there if you not face any extra depreciation.
Car depreciates faster in its first 2 to 3 years and afterwards, depreciation of the vehicle slows down significantly. Hence, you should factor buying in December only if you change your cars more frequently like in 2 to 3 years time frame.
Why not January?
Majority of car markers hike prices of car model in January. Also, freebies and discounts are on a lower side during the early part of the year.
However, if you are lucky then you can also get a car from the unsold inventory of the last year with discount worth lakhs of rupee. But the chances of getting an unsold inventory in January are bleak. And even if there is, it is usually an unpopular model that you might not want to buy.
CarInfo hopes that these points will bring more clarity to your car buying decision this festive season.