Buying a new car is a dream of everyone. With rising income levels, expanding road infrastructure, and a growing preference for personal vehicle after the pandemic, car ownership in India has seen a major shift. The market is flooded with options, from budget hatchbacks and tech – enabled SUVs to the rapidly growing segment of electric vehicles (EVs).
And all these varieties come with confusion. Some confusions are mentioned below:
- Should you choose petrol, diesel, CNG, or EV?
- Is it better to buy a new car or a certified used one?
- What’s the real difference between ex-showroom and on-road price?
- Will EMI burn a hole in your pocket or not ?
That’s why Taazashotes created this Ultimate Guide to Buying a Car in India (2025 Edition).this guide covers everything from choosing the right fuel type to calculating EMI, understanding on-road pricing, and shortlisting the best models in every budget.
If you’re a first-time buyer or looking for an upgrade, we’ll help you in:
- Selecting an appropriate vehicle that fits your way of living and financial plan.
- Ways to evaluate on-the-road costs, concealed fees, and financing choices.
- Understanding the latest fuel trends and EV adoption.
- Top car recommendations in each segment.
- Important pre-delivery and ownership checklists.
We’ve done proper research, to save your time and money.
1. Know what Kind of Car Suits You?
It’s very important to assess your personal needs and usage style before you begin comparing models or visiting showrooms. The ideal car for a person residing in a metropolitan area may not be suitable for someone living in a rural area or mainly driving on highways.
Before buying a new or old car ask Yourself these Questions:
(I). Where will you drive mostly?
- If you are driving in City then Opt for compact cars or automatic variants e.g., Maruti Swift, Tata Tiago, Hyundai Exter.
- For driving in Highway opt a stable sedan or SUV with better performance e.g., Honda Elevate, Tata Harrier.
- If you want to fulfill both conditions then go for crossover SUVs or mid-size hatchbacks e.g., Hyundai i20, Maruti Fronx.
(II). How many passengers usually travel with you?
- If you have a family of 3 – 4 people Small hatchbacks are budget-friendly and fuel – efficient.
- If you have a Family of 4 – 5 people then choose compact SUV or MPV that are spacious will be good choice.
- If owning a Joint family then Go for 6 or 7- seater vehicles like Kia Carens or Maruti Ertiga.
(III). How frequently do you drive?
- For covering Daily distance of 20 – 50 km a petrol or CNG car can suit you better.
- For Long – distance drives like frequent highways Diesel or EV options become more cost-efficient.
- For Occasional use like weekends only Petrol cars can be ideal as they need lower maintenance.
(IV). Do you have enough parking space?
- See if you live in a crowded city like Mumbai or Delhi, then parking is a bigger problem then compact cars are easier to manage. SUVs and sedans need wider parking slots and good turning radius.
(V). Will the car be use for personal or commercial purposes ?
- You must ensure that for what purpose you are buying a car. For Commercial purpose like cab, rental services: Consider fuel economy and after – sales support and for Personal / family give preference to comfort, features, and brand reliability.
Pro Tip: you should make a checklist of your daily driving routine, expected travel distance, average passenger count, and budget. This will help narrow down your options even before you look at specific model.
2. Petrol, Diesel, CNG or Electric – What Should You Choose in 2025?
Choosing the right fuel type like petrol, diesel, or electric is the most important decisions while buying a car in 2025. It impacts not just your daily running cost, but also impacts maintenance, resale value, and environment.
Petrol Car : Most Popular for City Use.
Advantages:
Petrol cars are less expensive upfront compared to diesel and electric vehicles. it’s engines operate more quietly and smoothly and has low Maintenance expenses. It is Ideal for urban driving or occasional long-distance trips.
Disadvantages:
Petrol cars has lower fuel economy than diesel thats why these are not suitable for long distances as petrol prices are relatively higher than diesel in may cities.
Best For: Low to moderate daily usage (under 40–50 km/day), and people who drive mostly within city limits.
Diesel Cars: The trend is declining, but they are still practical for long distances.
Advantages:
Diesel cars usually offer better fuel efficiency, giving around 18 to 25 kilometers per litre. In many states, diesel is also a bit cheaper than petrol, which helps save money in the long run. These cars are a good option for people who often travel long distances or drive on highways.
Disadvantages:
Diesel cars usually cost more to buy and maintain compared to petrol cars. With the introduction of BS6 norms, diesel engines have become more complicated, which can increase servicing costs. Also, in some cities like Delhi-NCR, older diesel cars over 10 years are not allowed, and this is leading to diesel vehicles slowly being phased out.
Best For: Heavy daily usage (50+ km/day), highway commuters, and fleet users but make sure local regulations support long-term use.
CNG Cars (Best for budget-conscious drivers)
Advantages:
CNG cars have the lowest running cost, around ₹2 to ₹3 per kilometer, which makes them very budget-friendly. CNG is also a cleaner and greener fuel compared to petrol or diesel, helping reduce pollution. These cars are best suited for city use and low-speed driving.
Disadvantages:
CNG cars usually cost more to buy than petrol cars. They also have less space in the boot because the CNG tank takes up a lot of room. Additionally, their performance is slightly lower, as they produce less power compared to petrol or diesel cars.
Best For: City commuters who drive a lot daily and want to save fuel money (e.g., 60–100 km/day). Also good for app-based taxi owners.
Electric Cars (Fastest-growing category in 2025)
Advantages:
Electric cars are very cheap to run, costing around ₹1 per km. They produce no pollution and get government benefits like subsidies in states such as Delhi, Maharashtra, and Gujarat.
Disadvantages:
Electric cars cost more to buy, even with discounts. In small towns, it’s hard to find charging stations. People also worry about running out of battery, but this is improving.
Best For: Urban users with daily commutes under 100 km, access to charging (home or office), and an interest in long-term savings and eco-friendliness.
Fuel Type Comparison Table (2025)
| Fuel Type | Average Mileage | Running Cost/km | Maintenance | Best Use Case |
| Petrol | 15–20 km/l | ₹5–7 | Low | City use, low mileage |
| Diesel | 18–25 km/l | ₹4–6 | Medium | Long-distance travel |
| CNG | 25–30 km/kg | ₹2–3 | Medium | High city usage, budget users |
| Electric | 100–500 km/charge | ₹1–1.5 | Very low | Urban, eco-friendly users |
⚠️ Note: Running costs vary by location, driving style, and fuel prices in your state.
3. Budget Planning & On-Road Price Reality (India – 2025)
Buying a car is not just about the price you see on the website or in the showroom. The final on-road price can be 10–20% more. So, it’s smart to plan for the full cost of owning the car, not just the price tag.
| Component | Description | Approx. % of car cost |
| Ex-Showroom Price | Base price of the car, set by manufacturer | – |
| RTO Charges | One-time registration fee & road tax paid to your state government | 10 – 15% |
| Insurance | Mandatory 3rd party + own damage coverage (1 year own damage + 3 year 3rd party) | 4 – 6% |
| Handling Charges | Fees charged by dealer for processing, delivery, temp reg. (optional) | ₹5,000 – ₹15,000 |
| Fastag & Number Plate | Compulsory for highways and registration | ₹1,000 – ₹2,000 |
| Extended Warranty, Accessories | Optional add-ons (seat covers, infotainment, etc.) | ₹5,000 – ₹500 |
Disclaimer: Based on average current rates – can vary by city/state
Tip: Don’t spend your entire savings to buy the car. Keep at least 3–6 months of expenses as an emergency buffer – or consider financing. Look If purchase is eligible for government subsidies on EVs (especially in Maharashtra, Gujarat, Delhi, Tamil Nadu).
4. New Car vs Used Car – Which One Makes Sense in 2025?
Buying a car is a big money decision, and choosing between new or second-hand can save or cost you lakhs – depending on what you need. Here is a simple guide to help you decide.
For Brand New car:
Advantages:
New cars come with full company warranty and 2–3 free services. They have the latest features, safety tools, and BS6.2 engines. You can easily get a loan at low interest. You don’t need to worry about damage or past accidents — everything is brand new.
Disadvantages:
New cars cost more to buy in the beginning. As soon as you drive them out of the showroom, their value drops by 15–20%. Also, the insurance cost is higher in the first year.
Best For:First-time buyers, long-term owners, or anyone looking for a hassle-free, reliable vehicle with warranty support.
If Buying a Used Car:
Advantages:
Disadvantages:
Second-hand cars are 25–40% cheaper than new ones of same model and year. First owner already took big loss, so you don’t lose much value. Insurance is also cheaper. You can even buy bigger and better car in same budget, like a used Honda City in price of new Swift.
Best For: Budget-conscious buyers, students, second cars for family, or users with limited annual driving (~5,000–7,000 km/year).
5. Where to Buy Used Cars in 2025:
- You can buy second-hand cars from trusted places like Maruti True Value, Mahindra First Choice, Hyundai Promise, and Toyota U Trust.
- Online websites like Cars24, Spinny, OLX Autos, and CarDekho Gaadi also sell used cars.
- Before buying, always check the full RC (registration), insurance papers, and service history properly.
Summarising New v/s Old:
| Factor | New Car | Used Car |
| Price | High | 20–40% cheaper |
| Warranty | 3–5 years standard | Rare (unless certified) |
| Features | Latest tech | May lack latest features |
| Insurance Cost | High in Year 1 | Lower, depends on IDV |
| Loan Availability | Easy, low interest | Higher interest, limited tenure |
| Maintenance | Low initially | May require repairs |
| Resale Value | Drops fast initially | Stable, lesser depreciation |
Final Tip:
If your budget is low but you want a car with good features, then go for certified second-hand car which is less than 4 years old and has full service record.
But if you want full peace of mind, low maintenance, and want to use car for long time like 5 to 10 years, then new car is better option.
6. Where to Buy – Online vs Showroom vs Aggregators
now the next and most coplicated question arises from where to buy a car will it online, a showroom or Aggregators. In 2025, you can explore, book, finance, and even get home delivery of your car through various platforms.
(a). Authorized Dealerships (Showrooms): It is the traditional but still the most common way to buy a new car.
Advantages:
When you visit showroom, you can take test drive and feel the car yourself. Staff will explain everything clearly and help you quickly. If you want to give your old car in exchange, it’s easier here. If car is in stock, you can get fast delivery. Also, they give offers on accessories and servicing which is helpful.
Disadvantags:
Sometimes showroom people try to sell extra things like coating or own insurance which you may not need. At some places, you can’t do much bargain also. And if car is newly launched or very popular, you may have to wait for delivery.
(b). Online Booking via Manufacturer Websites
Advantages:
Online car buying give clear price, easy to see all variants and check which model is in stock. You can book car fast by paying small amount like ₹5,000 to ₹25,000, and it’s refundable. You also choose from which showroom you want delivery. This option is good for people in big cities or who are comfortable using internet.
Disadvantages:
When you buy car online, you can’t see or drive the car before booking. After booking, local showroom still contact you for next steps. Also, you can’t bargain much on price online.
(c). Aggregators & Online Platforms (CarDekho, Spinny, Cars24)
Advantages:
Online platforms help you to compare cars from different brands very easily. You can also see second-hand car listings with full checking report. They also give options for loan and insurance. If you have old car, they give exchange offer too. Some sites even give test drive at your home.
Disadvantages:
All online sites are not same, some are not fully trustable. Sometimes car delivery take more time than they say. Also, you can’t do much bargain like you can do in showroom.
7. Car Loan & EMI Explained Simply (India 2025 Guide)
In India, mostly people don’t pay full car price at one time. They take loan from bank or company and pay slowly every month as EMI. In 2025, taking car loan become more fast, easy and flexible. But before taking loan, it’s very important to understand how it works, so you don’t face problem later.
lets dive in some frequently asked question related to Loan:
What is a Car Loan?
Car loan is a type of loan which you take from bank or NBFC to buy a car. First you have to pay some money from your side called down payment, and rest money bank give. Then you pay that money back slowly in EMI every month for 1 to 7 years.
How is EMI Calculated?
EMI = Principal Loan Amount + Interest.
How Much Down Payment Should You Pay?
Mostly banks or finance company give loan up to 90% of car’s on-road price. But best is to give 20–30% down payment, so EMI will be easy to manage. Try to avoid “zero down payment” loan, because it has high interest and sometimes hidden charges also. You can also ask showroom people if company has tie-up with any bank for special loan offer, like Hyundai with SBI or Maruti with HDFC.
What are some Hidden Charges.
| Charge | Description |
| Processing Fee | 0.5–1% of loan amount |
| Prepayment/Foreclosure Penalty | Some lenders charge 2–5% if you repay loan early |
| Late Payment Fee | Charged monthly on overdue EMI |
| Documentation Charges | Ask for full breakup |
Expert Tips:
- Compare loan offers from at least 2–3 banks/NBFCs before finalizing.
- Don’t just focus on EMI — check total interest paid over tenure.
- Opt for shorter tenure if affordable — you save more interest.
- Choose a fixed interest rate for predictable EMI (floating can rise anytime).
- Consider loan insurance only if it offers accidental or death cover — not if it’s overpriced.
8. Must-Have Accessories & Add-ons (What’s Worth It in 2025?)
When you buy a car, especially from a dealership you’ll often be offered a long list of “essential accessories” and add-ons. But not all of them are worth your money. In 2025, thanks to better build quality and factory-fitted features, many accessories have become optional. Here’s a guide to what you should get, what you can skip, and what’s just a dealership upsell.
Must-Have Accessories (Recommended for All Buyers): adds value, improves safety, and enhances comfort.
| Accessory | Why It’s Important |
| Floor Mats (3D/5D) | Protects carpet, easy to clean. |
| Seat Covers | Keeps factory upholstery clean. |
| Mud Flaps | Prevents dirt/mud from splashing. |
| Parking Sensors / Reverse Camera | Improves safety while reversing. |
| Mobile Charger & Holder | For navigation and convenience. |
| Side Door Beading/Protectors | Avoids scratches from tight parking. |
| Rain Visors | Lets you open windows during rain. |
| Boot Mat | Keeps luggage area clean. |
Tip: Many car brands now offer these as official accessories – but you can often buy better ones online at lower prices
Optional Accessories (Choose Wisely): These are good only if you really need them – not essential for all.
| Accessory | Use Case |
| Infotainment Upgrade / Android Auto Kit | If your car lacks touchscreen or smart features |
| Air Purifier | Good for metro cities with pollution issues |
| Dash Cam (Front & Rear) | Useful for insurance/legal proof in case of accidents |
| Car Vacuum Cleaner | Handy for frequent travelers or pet owners |
| Sunshades | Keeps cabin cool in summer, protects dashboard |
Accessories You Can Skip (Upsells / Unnecessary):
| Accessory | Why to Avoid |
| Teflon Coating / Ceramic at Dealership | Overpriced, better done at detailers outside |
| Underbody Anti-Rust Coating | Modern cars come with factory rust-proofing |
| Perfumes / Air Fresheners | Personal preference, not worth buying from showroom |
| Number Plate Frames | Often bundled for free or unnecessary |
| Premium Horns / LED Bulbs | May void warranty if not factory-approved |
Insurance Add-ons: What’s Actually Useful?
When you buy insurance (especially in 2025), you’ll also be offered several add-ons. Here’s what to say yes or no to:
| Add-on | Recommended | Why |
| Zero Depreciation Cover | Yes | Claim full value without depreciation cuts. |
| Engine Protection Cover | Yes | Critical in flood-prone areas like Mumbai, Chennai. |
| Return to Invoice | Yes | Covers full invoice value in case of total loss. |
| Roadside Assistance | Yes | 24/7 help for breakdowns, towing. |
| Consumables Cover | Optional | May help for high-value claims. |
| Tyre/Rim Damage Cover | NO | Expensive, limited usefulness. |
Expert Buying Tip:
- Ask for a written accessory list with prices before delivery. Don’t let salespeople bundle things without consent.
- Bargain for 2–3 free accessories – especially during festive season or end of month/quarter when targets are high.
9. Ownership Costs & Maintenance in India (2025 Guide)
Buying a car is just the beginning — owning it comes with recurring expenses. From yearly service bills to fuel, insurance, and repairs, here’s a practical overview of what you can expect when owning a car in India.
What Is “Ownership Cost”?
It includes:
- Fuel/charging cost
- Regular maintenance & servicing
- Insurance renewal
- Tyre & battery replacements (long term)
- Consumables (oil, coolant, brake pads, filters, etc.)
- Parking and tolls (location-dependent)
Yearly Maintenance Cost by Car Type (Approximate for 2025)
| Car Type | Annual Service (₹) | Fuel Cost/km (Avg) | Long-Term Costs |
| Petrol | ₹5,000–8,000 | ₹6–7/km | Battery every 4–5 years (₹4K–7K) |
| Diesel | ₹7,000–12,000 | ₹5–6/km | Higher service cost + turbo/injector issues over time |
| CNG | ₹6,000–10,000 | ₹2–3/km | Cylinder testing every 3 years (Govt. mandated) |
| Electric (EV) | ₹2,000–5,000 | ₹1–1.5/km | Battery replacement (after ~8 years, under warranty till then) |
Note: These are estimates for mid-range cars (₹6–15 lakh). Luxury vehicles and performance variants cost significantly more.
What’s Included in Annual Maintenance?
Most brands follow a 6-month or 1-year interval based on kilometers (usually 10,000–15,000 km).
Services include:
- Engine oil & filter replacement
- Air & fuel filter cleaning
- Brake pad check
- AC filter cleaning
- Wheel alignment & balancing (optional but recommended yearly)
- Software updates (for digital clusters/infotainment)
Tyres & Battery Lifespan:
| Component | Avg. Lifespan | Replacement Cost |
| Tyres | 4–5 years or 40,000–50,000 km | ₹3,000–6,000 per tyre |
| Battery (ICE vehicles) | 4–5 years | ₹3,000–7,000 |
| Battery (EV) | 7–10 years | Covered under 8-year warranty in most models |
Insurance Renewal Costs:
After the 1st year, your own-damage insurance part becomes optional (but recommended). You still need 3rd-party insurance legally.
| Car Age | Renewal Cost Range |
| Year 2 | ₹10,000–15,000 |
| Year 3+ | ₹8,000–12,000 |
| With Add-ons (Zero dep, engine cover, etc.) | +₹2,000–5,000 extra |
Tip: Always compare quotes online using PolicyBazaar, ACKO, Tata AIG, ICICI Lombard, etc.
Avoid blindly renewing through the dealership.
Hidden/Extra Costs to Expect:
| Item | Cost (₹) | Frequency |
| Pollution Under Control (PUC) | ₹60–100 | Every 6 months (after 1 year) |
| Fastag Recharges | ₹300–1,000/month | If you drive highways |
| Toll Charges | ₹60–500 per trip | Location-dependent |
| Paid Parking | ₹10–100/hour | In metro areas, malls, events |
| Battery Jumpstart / Breakdown Service | ₹0 (if roadside assist included) or ₹300–800 |
Cost – Cutting Tips:
- Do preventive maintenance instead of waiting for breakdowns.
- Get wheel alignment/balancing done outside if it’s overpriced at dealership.
- Choose service packages (AMC/Annual Maintenance Contracts) if offered during car purchase.
- Use OEM (original) parts — not local replicas.
10. Final Checklist Before Car Delivery (India 2025 Edition)
Taking delivery of a brand-new car is exciting, but before you drive it out of the dealership, a proper pre-delivery inspection (PDI) is essential. This ensures that your vehicle is damage-free, the right variant, and fully ready.
(a). Do a Thorough Pre-Delivery Inspection (PDI)
Preferably do this before registration (i.e., before RC is generated) — some brands like Tata, Mahindra allow it. If not possible, do it on the day of delivery at the showroom.
| Checkpoint | What to Verify |
| Exterior Body | Look for scratches, dents, paint mismatches |
| Tyres | All tyres should be new and same brand/year (check manufacturing week) |
| Odometer Reading | Should be below 50–100 km for brand new cars |
| Variant & Color | Cross-check with your invoice and booking |
| VIN (Chassis Number) | Match VIN on car with RC/invoice |
| Battery | Check brand, voltage, and fitment |
| Headlights, Indicators, Wipers | Test everything on/off manually |
| Infotainment System | Check screen, reverse camera, Bluetooth, Android Auto/Apple CarPlay |
| Air Conditioning | Test AC cooling, airflow, and rear vents (if applicable) |
(b). Documents You Must Collect
Ensure all documents are signed, stamped, and correctly filled.
| Document | Why It’s Important |
| Invoice (Tax Paid) | Final bill for car purchase |
| RC (Registration Certificate) | Proof of ownership |
| Owner’s Manual & Service Booklet | Warranty details & service records |
| Insurance Policy | Physical or soft copy (PDF with chassis number) |
| Warranty Certificate | 3–5 years standard, 8 years for EV battery |
| PUC (Pollution Certificate) | Optional in Year 1 for new cars |
| Fastag Activation Document | Should be live and ready for use |
(c). Freebies & Accessories Checklist: Dealerships often promise free items at the time of booking — check if they’re all included.
| Item | Check For |
| Floor mats | 3D/5D or universal? |
| Seat covers | Factory-fitted or extra? |
| Number plates | HSRP (High-Security Plate) |
| Perfume, tissue box | Minor, but still countable |
| Toolkit & spare tyre | Must be present under boot |
| Mobile charger/cable | If promised |
| First aid kit & fire extinguisher | As per safety norms |
(d). Final Formalities:
- Sign delivery documents only after full inspection.
- Do a quick test drive of your car before accepting it.
- Check that your VIN is updated in insurance and RC.
- Ask for a demo of the features, especially infotainment and safety systems.
- Take photos/videos of the car and documents for future record.
Pro Tips:
- Use “CarInfo” app or visit Vahan Parivahan website to verify RC status online.
- Do not accept a car with odometer > 100 km without clear explanation.
- Avoid paying full amount in cash – always use traceable methods (bank transfer, UPI, cheque).
Your New Car Journey Begins Now!
This final checklist ensures peace of mind and a smooth experience after months of saving and research.