As the year-end approaches, automakers rush in with lucrative discounts to clear the maximum stock. A number of four-wheeler makers are planning to hike the price of their models from January 2022. Hence, December is a good time to buy a new car. While there are distinct advantages of buying a car or bike during the year-end sale, there is a downside too.
Here’s a look at the pros and cons of buying a car or bike ahead of the Christmas-New Year festive season.
Pros
Good deals: Most automakers offer huge discounts to clear inventory at the end of the year with the hope to drive in the latest models in the new year. Apart from cash discounts, buyers often get extended warranties and accessories. This year, Honda is offering discounts on accessories up to Rs 12,147 on Honda Jazz and Rs 8,108 on Honda City. French auto brand Renault is offering cash discounts on Duster, Kiger, Triber and Kwid. South Korean automaker Hyundai is also giving a bunch of offers on selected models in December.
Representational image of Renault KwidBeating the price hike: Most of the car manufacturers have announced plans to raise prices in January to offset the impact of rising input costs. It is, therefore, better to buy in December and save the extra amount.
Exchange deals: December is also a good time to exchange your old car or bike for a new one as most automakers offer good exchange deals. The dealer evaluates the old car or bike and makes an offer based on the prices prevailing in the current year. Going for an exchange in January will make your car a year older. This year, Honda is giving an exchange bonus of Rs 6,000 on Amaze and Rs 9,000 on Honda City.
Representational Image - Honda CityCons
The biggest drawback of buying a car or bike in December is that the customers will have to settle for an older model when they could have got a newer model just after a few weeks.
Resale value: Buying a car in December also makes it significantly older than the ones bought in January and this impacts the resale value. The resale value drops for older vehicles.
ALSO READ | The year-end car sale has begun: Here are discounts, exchange offers you can avail till Dec 31
Model changes: Automakers drive in minor changes in the new models launched in the new year. If the buyer is looking for improvement in the current models, it is better to hold off the purchase for a few more weeks.
(Edited by : Ajay Vaishnav)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM