Annie, a young professional in Mumbai, decided it was time to buy her first car. She was thrilled but quickly realized there’s a lot to consider — from choosing the right car and financing it to negotiating price and dealing with paperwork. Like many, Annie wanted to avoid buyer’s remorse and ensure she got the best value and road safety.
Her experience, which we’ll share along the way, highlights common concerns and practical advice for anyone buying a car in 2025.
Step 1: Setting Your Budget – What Can You Afford?
Annie’s first big question was, “How much should I spend?”
Budget Tips
- Assess your income, savings, and monthly expenses.
- Remember to budget not just for the car’s price but for insurance, fuel, maintenance, and taxes.
- Decide if you want to pay cash or take a loan — if loan, check your credit score and consider pre-approved financing options for better deals.
Annie’s Tip: “I sat down and listed all my monthly expenses. Then I looked at online EMI calculators to understand what monthly car payments would be comfortable.”
Step 2: New or Used?
Choosing between a new sparkling car and a well-maintained used one is a major decision.
New Car Advantages
- Latest technology and safety features
- Full warranty
- Customization options
Used Car Advantages
- Lower price
- Less depreciation hit
- Wider choice within budget
Annie’s Decision: She opted for a new car for peace of mind and modern safety features, but with plenty of options in the certified pre-owned market for buyers on a tighter budget.
Step 3: Research Your Options
Annie spent time exploring popular cars for 2025, focusing on factors like fuel efficiency, resale value, safety, and comfort. Some popular choices for Indian buyers in 2025 include:
| Car Model | Type | Mileage (km/l) | Safety Rating | Starting Price (INR) |
|---|---|---|---|---|
| Hyundai Creta | SUV | 17 | 5-star NCAP | ₹10 lakh |
| Tata Nexon | Compact SUV | 16 | 5-star NCAP | ₹8 lakh |
| Maruti Suzuki Swift | Hatchback | 21 | 4-star NCAP | ₹6 lakh |
| Renault Kwid | Hatchback | 22 | 3-star NCAP | ₹4.5 lakh |
(Values indicative, check current prices)
Step 4: Visit Dealers or Online Platforms
Annie visited local dealerships and browsed online platforms where new and certified used cars are sold.
What to Look for When Visiting Dealers:
- Check multiple dealers for better deals
- Test drive cars to understand comfort and handling
- Ask about discounts, warranties, and service packages
- Clarify return policies and after-sales support
Step 5: Test Drive and Inspect
Annie test drove several models. Here’s what to check during a test drive:
- Comfortable seating and driving position
- Smooth acceleration and braking
- Clear visibility and mirrors
- Functional air conditioning and entertainment systems
- Listen for unusual engine or brake noises
Step 6: Financing the Car
If paying upfront isn’t feasible, loans are common:
- Compare interest rates from banks, NBFCs, and dealer financing
- Know your loan tenure and monthly EMI affordability
- Consider the total interest paid over the loan period
Annie’s Tip: “I got pre-approved for a car loan online before going to the dealer. It gave me a clear spending limit and strengthened my negotiating power.”
Step 7: Negotiating the Price
Negotiations can save you money:
- Research the invoice price and current market rates
- Be ready to walk away if the dealer isn’t flexible
- Ask for freebies like accessories, extended warranty, or free servicing
Step 8: Understanding Paperwork
Buying a car involves signing documents. Here’s a checklist:
- Sale agreement with car price and terms
- Insurance policy (you must have insurance before driving away)
- Registration papers and temporary registration number
- Road tax payment receipt
- Warranty documents
Step 9: Delivery and Post-Purchase
Upon delivery:
- Inspect the car for any scratches or defects
- Confirm all promised accessories are present
- Get the owner’s manual and service book
Annie’s Summary: Why This Process Worked for Her
Patience, research, and asking questions made Annie’s car buying journey rewarding and stress-free. She encourages buyers to take their time and prioritize safety and comfort over flashy features alone.
FAQs – Common Questions About Car Buying in 2025
- Should I buy insurance through the dealer?
You can, but compare independent insurer quotes for better rates. - What’s better: petrol, diesel, or electric?
Petrol cars suit city driving, diesel for long highway use, and electric vehicles reduce running costs and pollution but check charging infrastructure. - How much should I budget for maintenance?
Typically 5-10% of the car’s value per year, including fuel, servicing, and unexpected repairs. - Is extended warranty worth it?
It depends on the car model and your usage. Research the coverage offered. - Can I return the car after purchase?
Usually no, but some dealers or online platforms offer short return windows. Confirm before buying.
Helpful External Resources
- CarDekho: Best Cars in India 2025
- CarWale: New Cars in India 2025
- IFFCO Tokio Car Buyer’s Guide 2025
- Spinny Used Car Buying Guide
- AutoInsurance.com New Car Buying Guide
Table: New vs Used Car Buying Quick Comparison
| Aspect | New Car | Used Car |
|---|---|---|
| Price | Higher upfront cost | Lower upfront cost |
| Warranty | Full manufacturer’s warranty | Limited or expired warranty |
| Depreciation | High in first 2-3 years | Lower depreciation |
| Condition | Flawless | May have wear and tear |
| Features | Latest technology available | May lack latest tech |
| Financing options | Easier to get loans | May have limited financing |
| Insurance premium | Usually higher | Usually lower |
A Short Story: Annie Buys Her Dream Car
Annie’s journey was full of discovering what mattered most — comfort, safety, and a budget-friendly price. When she finally took delivery of her Hyundai Creta, she felt proud and confident because she followed a clear plan instead of rushing or getting swayed by gimmicks. Her advice: “Do your homework, test drive thoroughly, ask all the questions, and buy only when you feel sure.”