Steer Past The Art Of Auto Upsell: What Car Buyers Should Know

Automobile purchases in India are strongly associated with the festive season. Data confirms that. According to data for 2025 released by the Federation of Automobile Dealers Associations (FADA), around 26.70 per cent of the calendar year’s total sales of 28.10 million across vehicle categories took place in October and November, India’s official festive season.

No doubt, the festive season sees the highest footfall at car dealerships and many offer attractive discounts and packages to increase their sales. However, before you decide to buy yourself a new set of wheels this festive season, you should check whether you can afford a car, and if you can, the things you should consider before going in for that deal.

Should You Buy?

Your decision to buy depends on your affordability. For bigger vehicle purchases, buyers should look well beyond the monthly payment figure to calculate the total cost of ownership, including insurance, fuel, maintenance, parking, and cumulative interest.

Rahul Banerjee, CFA and founder and managing director of PGP Academy, a financial education and training platform, says that using a lender’s maximum approved loan ceiling as a benchmark for personal affordability is a mistake, as lenders do not account for your family commitments or emergency reserves.

For bigger purchases like a car, utilising structured budgeting frameworks keeps debt manageable.

Says Banerjee: “The 20:4:10 rule can be useful for car buyers: aim for 20 per cent of the car cost as a downpayment, keep the loan tenure to four years or less, and try to keep total monthly vehicle costs within 10 per cent of gross monthly income. Treat it as a budgeting framework, not a universal regulatory rule.”

If you think you are falling short, start planning now, so that you can afford a car next year. This could be a beginning of sorts too: starting to save for this important purpose. If all is well, here are the things you should consider.

Avoid Costly Additions

Many buyers queue up at showrooms to take the delivery of their vehicles on auspicious dates. However, many showrooms try to leverage this date-specific demand and the emotional momentum of the festive season to inflate the final on-road invoice.

It’s not uncommon for sales representatives to pile on additional items to increase the total bill. “Your car should look festive sir”, that line is enough to make you want to add the frills. These additions include bundled accessory kits, chrome garnishes, brand inlays and so on.

Suraj Ghosh, automotive expert and director, Customized Energy Solutions, an energy and mobility consulting firm, says buyers should refrain from such inflated additions.

He says certain highly promoted treatments offer very little real value for a brand-new vehicle. “Ceramic coating and Teflon polish are the most overpriced items on the list. A new car’s paint doesn’t need them,” says Ghosh.

Do Your Due Diligence

Evaluate The Offer: For vehicle purchases, evaluating dealership offers requires separating genuine manufacturer price reductions from bundled cosmetic kits and inflated exchange valuations.

Take the example of Honda’s September offer for the Amaze ZX MT, which has a maximum benefit of “up to” `66,800, according to details provided by a dealership in Delhi. The offer comprises a `15,000 cash discount, `15,000 exchange bonus, `4,000 loyalty benefit, `6,000 exchange benefit for existing Honda owners, `3,000 corporate benefit, `10,000 self-employed benefit and `13,800 discount on a festive seven-year extended warranty. The “up to `66,800” benefit, therefore, depends on meeting the conditions and break-up mentioned above. For those who fulfil all the conditions, it may be a good deal.

Says Ghosh: “Buyers should look beyond the headline ‘up to discount’ and calculate the actual net savings they are eligible for. This means verifying offer conditions, comparing the exchange valuation with the vehicle’s market value, and accounting for financing costs, insurance, and add-ons. Ultimately, the true benefit is the difference between the final payable price and a comparable, itemised quote, not the advertised discount.”

Buyers should also check the car’s manufacturing date and model year before booking. A representative at a Volkswagen dealership in Delhi told Outlook Money that previous model-year cars may be offered at higher discounts than newer ones, depending on available stock and ongoing offers.

For instance, the September offers for the Volkswagen Virtus 1.0 TSI Topline AT with Electric Seats show a difference between model years. The MY25 version carries a `75,000 consumer discount and `1.25 lakh dealer cash buffer, taking the total cash discount to `2 lakh. For MY26, the consumer discount and dealer cash buffer are `50,000 each, taking the total cash discount to `1 lakh.

Compare Insurance Rates: Some dealerships insist that the in-house insurance packages are mandatory for immediate delivery but that’s not true. You can legally opt for any motor insurer of your choice. Check aggregator websites to find the best price and features. Remember to take a comprehensive motor insurance for full coverage.

Check Hidden Fees: Check the on-road price carefully to find any hidden fees such as logistics charges. Says Ghosh: “Handling or logistics charges shouldn’t be paid at all. Manufacturers don’t authorise them. Buyers should look into the official price list before signing anything.”

Inspect Before Taking Delivery: Buyers must conduct a thorough pre-delivery inspection in broad daylight before accepting the keys.

He says: “Don’t sign the delivery acceptance form until you have gone over the car yourself, in daylight, not under showroom lights. If something’s wrong, write it on the delivery note before signing, or simply refuse that unit. Try to get this done before registration, because once the car is in your name, getting it swapped is an uphill battle.”

A car is an expensive buy. Glossing over the big details for the small prizes would be akin to missing the woods for the trees; and financially, a detrimental move.

manas.malhotra@outlookindia.com

ayush.khar@outlookindia.com