Diwali 2020 Offers: Should You Buy A New Car Now Or Wait Till December?

Does the long-held belief of buying a car during the festive season still hold weight or will a year-end purchase save you more?

There’s palpable excitement among us Indians during the festive season. Most of us plan our big purchases around this period and that stands especially true for car buyers. But why exactly do so many car buyers defer or align their purchases with this festive timeline? For one, it’s considered an auspicious time to bring home a new car. More importantly, Diwali is also a time when carmakers offer attractive deals to entice buyers. But should you be mesmerised by Diwali offers or does it make better financial sense to wait till December when carmakers again offer deep discounts to clear their inventory before the new model year stock arrives? Read on…   

Diwali=Deal waali purchase?

Honestly, there is never a wrong time to buy a car. If you have been eyeing a particular model for a long time or need a car urgently for your commutes now that lockdown has been lifted, go ahead and make that purchase now by all means. However, if you are looking to buy a car during Diwali to snag some killer discounts, be ready to lower expectations and consider models that are not a Maruti Suzuki or Hyundai. While these two carmakers are offering discounts nearing Rs 50,000 on a few low-selling models, these conditional discounts are available in regular months as well. 

Besides, don’t go looking for any major discounts on the volume-churning small cars as they are anyway in good demand. The attention-grabbing headlining offers are only available on the more expensive products in the stable. Here's a look at the best offers on cars this Diwali.

*All the above are indicative offers. For detailed offer lists, click on the link.

So when should you buy a new car?

Unless you are in a hurry to buy one during the festive period, we’d recommend waiting until December. That’s when dealers are looking to clear the current year’s inventory before the fresh model year units arrive. Tip: Reach out to a dealer in the second half of the month to negotiate extra discounts, freebies in the form of accessories, extended warranties or roadside assistance packages. Dealers are usually looking to meet their sales targets at this point which should play in your favour.

Of course, this approach isn’t a one-size-fits-all glove. The discounts are going to vary depending on the brand and car you’re choosing. If it’s a best seller that has constantly made it to the hallowed list of top-selling cars with a long waiting period, the chances of getting discounts are bleak. For instance, cars such as the Hyundai Venue and Creta have a long waiting list and discounts are out of the question. 

Waiting Period On Popular Cars

*All the above are indicative figures and could vary depending on the variants chosen. 

Isn’t a year-end purchase going to hurt my resale value?

Buying a car in December won’t have much of an effect on your car’s resale value if you decide to own it for a longer timeframe, say five years. A vehicle depreciates the most in its first three years and following that, the value drops comparatively slower. Besides, the extra wait of a month shouldn’t be much of a bother. So, unless you change your cars within three years, you should be fine putting your money on a car that’s already saving you a healthy amount during the purchase. 

What if I bypass Diwali and December to buy in the new year?

This is a sensible idea for those who change cars frequently, say within a couple of years. But keep in mind that most car manufacturers hike prices in January so not only will you be paying slightly more than the previous year’s ex-showroom cost, but the freebies are also likely to be lower or nil in comparison. 

That said, some dealers will have unsold inventory from the previous year and that can be bought for discounts worth lakhs. However, these are usually the less popular models but offer good value nonetheless if you intend to keep them for longer. 

We hope the above points will help you get a clear perspective on planning your car purchase. If there are still any grey areas that you need help with or if you have any suggestions, do share your thoughts in the comment section.