Buying a car? Enjoy attractive festive-season discounts in December

But if you delay purchase to the new year, you will get a higher value on resale

Did you know that when you buy your car really matters? In December, good deals and discounts are available on vehicles, thanks to the festive season, which starts pre-Diwali and lasts until the new year. According to media reports, cars will become dearer in the new year. Maruti has already announced a price hike; others will follow suit. But does that mean it makes sense to buy a car in December and not in January or later?  

Buying in December: December is both the best and the worst month to buy a car. Says Hemant Dalvi, managing director, Genistra Cars Bazzar: “This is the month when you can get the best deals, as year-end discounts kick in. Car dealers want to get rid of their old inventory, hence discounts are high.” Take, for instance, the Alto 800. It has a cash discount of Rs 40,000, an exchange bonus of Rs 15,000, and a corporate discount of Rs 5,000. Other Maruti models have discounts in the range of Rs 35,000-60,000. 

But December is also the worst time to buy a car. Says Dalvi: “Buying a car in this month will mean that your car’s  registration date and manufacturing date will be of 2019. These 2019 dates will make a difference while selling your car a few years down the line.” The age of the car impacts its resale value. Just one month will add a whole year and affect pricing when it's time to sell.  

Buying post-January: If you buy a car in or after January, you will miss the discounts. In fact, you will end up paying more as car prices are set to increase in 2020. But you will get a 2020 registration date and manufacturing date. Says Subh Bansal, co-founder at Truebil.com, a platform for buying and selling pre-owned cars: “You will get better resale value on cars bought in 2020 vs. Dec 2019. Also, by April 1, all cars available will be Bharat Stage-VI (BS-VI), which will anyway offer a better resale value than a December 2019 BS-IV car.” A few BS-VI models are already available—the petrol versions of the Baleno, Wagon R, and the Dzire. The latest Grand i10 Nios petrol and the new 2020 Hyundai Elantra are the BS-VI models available currently from Hyundai India. Toyota India has only one BS-VI car in its line-up—the Toyota Glanza. Even the new generation Audi A6 is BS-VI compliant.

More BSVI models are expected to come in from January 2020. After all, April 1 is the deadline. In fact, even if you buy a BS-IV model in December 2019 and the same model in January 2020, still you will get a better resale value for the January car. 

What to do: The Supreme court had announced that no Bharat Stage IV cars should be sold from April 1, 2020. Hence in December BS-IV cars are available at mouth-watering discounts. Says Dalvi: “If you plan to use the car for the long term, make use of the December discounts.” BS-IV cars will be allowed to ply on the roads till the end of their registration period (15 years), even after the new emission norms kick in. Says Bansal: “For those who plan to resell the car in four or five years, buying in January may work out better, as you will get better resale value. That's the sweet spot for getting a good resale value.” One pro tip form Dalvi. “When it comes to resale, the year of manufacturing is more important than the year of registration. Dishonest sellers may sell you an older manufacturing-year car (December), and offer a January registration,” he informs.