# Buying your first car: 12 things to check before you pay the booking amount > A practical checklist for first-time car buyers in India — budget, segment, test drive, on-road price, insurance, financing and delivery inspection. - URL: https://www.expertadvice.co.in/articles/first-car-buying-checklist/ - Topic: Cars & Four-Wheelers - Author: Expert Advice Editorial Desk - Published: 18 September 2026 ## Short answer Before paying a booking amount, fix your total budget (including insurance and running costs), choose the segment that suits your daily use, take a proper test drive on familiar roads, get the full on-road price in writing, compare insurance and loan offers independently, and inspect the car carefully before taking delivery. ## Key takeaways - Budget for the on-road price plus fuel, insurance and servicing — not just the ex-showroom price. - Pick the segment for your daily reality, not your once-a-year road trip. - Test-drive on roads you know, including traffic, a speed breaker and parking. - Get every price and freebie in writing before paying anything. - Do a pre-delivery inspection in daylight before signing the delivery note. Buying your first car is exciting — and that excitement is exactly what makes it easy to overspend or miss something. Work through this checklist before you hand over any money. ## Plan your money ### 1. Fix a total budget, not a car price The ex-showroom price is only the start. Your real budget must include: - **On-road extras:** registration, road tax, insurance, accessories - **Running costs:** fuel, parking, tolls - **Upkeep:** servicing, tyres, insurance renewals A common guideline is to keep your car loan EMI well within what you can comfortably pay every month even if your expenses rise. ### 2. Decide how you will pay If you need a loan, get pre-approved quotes from your own bank and at least one other lender **before** visiting the dealer. Then you can compare the dealer’s financing offer properly. ## Choose the right car ### 3. Pick the segment for daily life | If you mostly… | Consider | |---|---| | Drive alone or with one passenger in city traffic | Hatchback | | Need more boot space, or drive longer distances | Compact sedan or compact SUV | | Carry family of five or more regularly | Larger SUV or MPV | Buy for the 300 days a year you drive to work, not the one family trip to the hills. ### 4. Fuel type: petrol, diesel, CNG or electric Your daily distance, local fuel availability and where you park decide this. CNG suits high city mileage where filling stations are convenient; electric suits predictable routes with home charging. ### 5. Check safety Look for safety-test ratings, the number of airbags, and electronic stability features. Safety is not a place to save money. ## At the showroom ### 6. Take a real test drive Drive on roads you know. Include traffic, a speed breaker, a U-turn and parking. Sit in the back seat too. Check visibility, seat comfort and how easy the controls are to reach. ### 7. Get the on-road price in writing Ask for an itemised quote. Question any "handling" or "logistics" charges, and check that any discounts and free accessories are written down. ### 8. Compare insurance independently Get quotes for the same cover from other insurers. Understand what add-ons such as zero-depreciation actually cover. ### 9. Ask about waiting period and delivery date Get the expected delivery date and what happens if it is delayed. ## Before you take the keys ### 10. Do a pre-delivery inspection Inspect the car in daylight before signing anything: - Paint, panels and glass for scratches or dents - Tyres (including the spare) for manufacturing date and condition - Odometer — a new car should show very few kilometres - All lights, wipers, AC, music system and windows - Owner’s manual, service book, two keys and toolkit ### 11. Check the documents Make sure the invoice, insurance policy and registration details match the car’s chassis and engine numbers. ### 12. Understand the warranty and first service Note what the warranty covers, for how long, and when the first free service is due. ## A final word Take your time. A good deal will still be there tomorrow. If anyone pushes you to pay "today only", walk away and think it over. ## Frequently asked questions ### Is it better to buy a new car or a used car first? A good used car can be excellent value for a first car, especially if you are still learning. Buy from a reliable source, check service records, and have an independent mechanic inspect it. ### Should I take the dealer’s insurance? You are free to buy insurance from any insurer. Compare the dealer’s quote with others for the same cover and add-ons — the difference can be significant. ### Is the booking amount refundable? It depends on the dealer’s terms. Ask before paying, and get the cancellation and refund policy in writing.