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Things to know before you make the big investment
Consider a situation where a person visits a dealer to buy a new car. The test drive is smooth and he is ready to make the purchase. However, the dealer informs him that the car is manufactured 7 months back.
The potential car buyer faces a predicament of sorts. Though he wishes to buy the car, he wonders if there is a catch. This brings us to a question which many potential car buyers face 'Is it prudent to buy a new car with an older manufacturing date?'
Generally, dealers are ready to give a discount on such cars, which makes them easy on the pocket. However, there could be a few pitfalls of buying a car with an older manufacturing date.
The Cons
Is it really new?
- Resale Value
It may fetch a lesser price than a newly manufactured car. - Storage-related Problems
Cars stored in poor conditions tend to develop problems like fading paintwork, corrosiveness and breaking down of rubber. A long storage time may affect car's suspension level or contaminate its fuel. - Older Technology
It is possible that you will not get the latest technology and accessories with an older car. E.g. A newer car may have an engine with higher fuel efficiency than an older car.
A Few Questions to Probe
While buying a car with an older manufacturing date, you should ask a few questions and know about:
Weigh the pros and cons carefully
- New Variants
Check if a newer variant of the car is expected to come out in future. Newer variants generally offer better performance due to superior engine. Some offer better safety features like airbags and anti-theft devices. If these new features are a good add-on, do not go for the older car. - Storage-related Problems
Ask the dealer where the car was stored. A car stored in poor conditions is far more likely to develop defects. - Older Technology
Discover the reason why it is still unsold. One of the reasons could be that it is a low selling and unpopular model. If this is the case, find out why it is unpopular. E.g. With the difference between petrol and diesel prices coming down in India, some diesel variants may not be popular. You can go ahead with its purchase if you prefer diesel cars.
Check the Car
You need to have an eye for detail while checking the car. Keep these pointers in mind:
- Inspect the body to find whether the paintwork has faded.
- Check whether there is excessive dust on the car, indicating it had been kept in poor conditions.
- Find out if any foul smell is coming from the seats, air conditioning or engine
- Go for a test drive to see the working condition
Set strict criteria for making this investment. If it meets your expectations after the above inspection, then move on to the next step. A good car, regardless of its manufacturing date, at a reasonable price is fair deal.
