10 steps to getting the best bargain while buying an automobile

1. Keep two cars on the list to buy: All the cars in the market today are equivalently well built with some being frugal while others better built. It is safe to keep two cars on the list since not all car makers have a dealer near you. Even more convenient if you have two dealers for the same car maker. I was looking to get a Honda Jazz, I was also looking at a Nissan Micra. In Ahmedabad we have Landmark Honda (my previous experience was sad with them.) and a newly opened Emerald Honda. Nissan has only one 'Petal Nissan' though.

 2. Always Test drive the same car you are to buy twice: Usually dealers do not keep all variants for Test Drive. But if you do not get to test drive the same engine/ transmission option you want, just walk away. I wanted to test drive a Hyundai I20 Diesel before purchase. The dealer did not have a test drive car. For Honda Jazz ' gave us a test drive first at our door step and next at their dealership. Also remember to test drive the car on the roads you usually drive on in the way you drive. But, also remember that you do not own the car and you are not racing on the track.

3. Let the Salesperson call you back: Never call back or return to the showroom before the sales person calls you. It is important that the customer is provided with a call back. If the dealership does not call back, they are not bothered with providing you a good service either. I received a call back from Fiat Showroom three months after I had already bought my car. Additionally, letting them follow up shows that you are in control.

4. Keep a track of the bargain you are getting: It is important to understand the current schemes on the car before you even finalize on it. This is necessary for you to know how much you can bargain further. Also do not get book a car after seeing a heavy discount advertisement. It might be an inventory sell out for a new model. If it is then you can go crazy during the bargain. But make sure the car has sold enough to ensure easy spares availability. Maruti 800 went out of sale but the last units were lapped up by the market because spares are readily available. Skoda on the other hand had a 9 month old Fabia waiting to be sold. Another reason is because the car is slow selling. This should not bother if the car fits your requirement. A Tata Indigo Marina is not an everyday car for Tata but buyers who buy them are pretty satisfied. Sometimes competition encourages heavy promotion too. In the end it is always the buyer who wins. But remember that it is the total price you pay that is important irrespective of how big an amount the dealer shows to you. Ask them how much in total you pay.

Additionally, after you have decided to buy the car, ask the sales executive on what further discounts he will provide. For this step, you should be prepared with prices of competing cars in the market and prices from various showrooms. I initially began the bargaining talk by telling the sales person how the Volkswagen Polo petrol is cheaper than Honda Jazz and how he might lose a sale. The sales person wont match the price but it is a nice beginning to getting a bargain. Let him bargain and reduce the price before you show any intent. Once you get to level to of bargain, dish out what the competing same brand dealer is offering. I had a quote from Emerald Honda to show to Landmark Honda before he reduced the price. Do not hesitate to walk to the other dealer for a better bargain. This will take some time but it is worth it if you are looking to save good money. Bargain until both the dealers confirm they cannot go any low and you know there is no more margin for bargain.

PS: White and silver coloured cars are universally best sellers irrespective of the brand or model. Discounts are less on these colours and they also fetch higher resale. If you are planning to keep the vehicle for long and do not care about resale ask the dealer for a different colour to your liking for a better price. I selected a blue colour and I got a further cash discount.

5. Freebies are essential too: Depending on how well the car is equipped, you can begin bargaining further for the free accessories which form an integral part of the car experience. Here is a list of things you can get free or for a subsidized price.

1. Stereo system
2. Additional quality speakers for stereo system
3. Alloy Wheels
4. Glass tint/ Sun film
5. Floor mats
6. Cabin freshener
7. Bumper guards
8. Door protectors
9. Boot parcel tray
10. Teflon coating for body and engine
11. A full tank of gas
12. Extended warranty
13. Audio auxiliary/ iPod/ usb cable
14. Spoiler
15. Body kit
16. Fog Lights
17. Drilled pedal kit
18. Steering cover
19 Seat covers
20 Remote central locking kit.

The list goes on and you should try to get the most out of the deal. Remember, the showroom owner is rich and you are parting with your hard earned money.

6. Select your own car:  The dealer is out to clear his inventory but it is important for the customer to remember that no two cars are built the same. Walk to the stock yard and look for at least two cars units before selecting on one. Check for the manufacturing date. If you got a huge discount, chances are that the sales person will sell you an older dated car. Check the VIN for more information. If you do not know how to read a VIN number just plain ask the sales person to show you car papers reflecting the VIN number. Look for defects/nicks/ or repair jobs. Then select the car you want. Make sure a proper PDI (Pre Delivery Inspection) has been carried out and the car meets the latest emission regulations.

7. Finance options: Many people pay cash upfront while many select Bank loans for depreciation/ tax benefits. For loan options a further loan payout pass on is possible for the customer along with insurance. While the dealership may provide more discount for upfront cash payment. Select the one that suits best. CAVEAT EMPTOR: Banks are white robbed bandits when it comes to loans, select the right financing options from a reputed bank and look where you sign even if they make you sign 500 pages. It is extremely important to note that while availing a loan can help you buy a premium car, it is up to self to ensure that the installments are affordable.

8. Check the documents and the transactions: Check the whole transaction with every minute detail possible. Inspect how and where the discount has been given and how it reduces your total price or adds an extra for a lower price. Seldom do sales persons play around prices to make customer feel they have got a good deal while that is not the truth. Do not go by the ex-showroom and on-road prices listed on the paper by the dealer.

 
9.  ASK  Nothing is as crucial and important. Ask reasons and replies for every single doubt or questions you have. Satisfy yourself that you are getting what you have agreed for.Ask for clarifications if even a single point seems fishy.

10.  Warranty and coverage: A warranty these days is usually part of the deal that you get on the car. While other brands such as Fiat advertised a 24+24 warranty package, Honda has a 4 years warranty in place. Check all the details of the warranty. My Honda Jazz had issues with window linings leading to slow window operation. The four year warranty took care of it.

RACING Wrist watches- What's the lap time?

1- Rolex Daytona-

2.Ducati Corse Watch.

3. DucatiTudor

4.  Denissov Moto Style

5. Chanel J12 Superleggera

 6. Tissot Nascar

 7. Panerai Ferrari FER015

 8. Koeniggsegg CCX by EDOX

9.Yamaha V-MAx Choronograph

10. Tissot T-race Moto GP edition

11. Breitling Bentley GMT

12. Longines Sport Grande Vitesse

13. Oris williams F1 skeleton engine

14. Orient Rally

 
15. EDOX WRC

16.Titan Octane ROTR

 Tag Heuer carries a complete range of racing watches under the Carrera, Carrera grand F1 and other names.

Chopard  mille miglia, 1000miglia

 Porsche Design as per the name has a range of racing watches in its lineup

LML is back and it has a plan.

LML was once a pioneer in the scooter market in India. An over zealous growth plan gone horribly wrong and employee strikes pulled the company down. The Singhania's were looking for a lifeline for the company while diversifying into to other businesses when Credit Suisse stepped in with fresh capital. This was about 6 years ago. So what has LML been up to? the reply is..... A lot!!

My first motorcycle was an LML Adreno. The semi fairing look stole my heart and it was extremely comfortable to drive. The handling was better than Hero CBZ and Bajaj Pulsar. But the extra weight and smaller engine did the bike in. It's Cousin the 'Energy' fared slightly better but met with a similar fate.

But my tryst with LML has continued in the form of the LML Scooter that my friend owns. The story is same nationwide since LML was the only other scooter maker apart from Bajaj. During the Bajaj monopoly days when their scooters were only available for Forex currencies, LML broke the mould. A bigger, better and stronger scooter.  It was again the scooters that saved LML six years ago after being declared sick by BIFR (Board of Industrial and Financial Restructuring) which is an equivalent of Bankruptcy. The company began operations by exporting scooters to Europe, Africa and Middle East as a retro and fun alternative. The bank account saw a jump and the company decided to stick to scooters even when the Kanpur based firm re-entered India.

The company is still in red and bleeding millions but the capital has grown and sales have increased year over year. The old scooter has been smacked with chrome, bigger alloy wheels, electric start and disc brakes. Voila!! you have a successful recipe. Today LML has the only geared scooter in the market with a promising Fuel Efficiency figure enough to pull customers into the showroom.  The company is also planning a similar smacking on their mildly successful 'Freedom' motorcycle targeted at the 110cc mass market. A 125cc engine is also rumoured also to power a gearless scooter. The only gearless scooter LML made was the Trendy which again had bombed in the market. The company is seeking to infuse fresh capital either via private equity route or through dilution of equity stake in order to fund development of new products.

Besides,LML has caught the nerve of the customers who use geared scooters. Most scooters are used as robust but fuel efficient goods haulers. Keeping this need in mind LML is launching a 200cc scooter in the coming two months priced at 47000.  It will be the same NV 150cc scooter now on sale in India with a bigger engine. This will be an important launch since Honda Activa's and Dio's have not been able to withstand the heavyduty use and the Eterno did not click for Honda. The 200cc four stroke engine mated to a four speed hand shift gearbox generates 11.5 Bhp and 14.5 Nm of torque. LML claims a mileage of 50 KMPL for this scooter but ARAI figures are yet to be released.

The downside of the company's plans is that the dealer penetration has only firmed up in North India around their Kanpur factories. The sales only cover Delhi, UP, Punjab and Haryana. But on the upside, the new scooters have received rave reviews globally for their build quality. The Select 4 features a 150cc four stroke engine producing 8.6 Bhp of peak power at 6200 rpm and 11.3 Nm of peak torque at 4250 rpm. The engine is mated to a cable shift, hand operated 4 speed manual transmission. The kick start version will cost INR 47, 140 while the electric start version will cost INR 50, 948, both prices ex-showroom, New Delhi. A 150cc motorcycle is planned for later part of 2012 rumoured to be based on the mildly successful LML Beamer. Hopefully LML can still tie-up with Daelim looking at the success of Hyosung Garware tie-up.

India- the new Chopper wars capital

Want to Buy a new motorcycle in India? Looking at a cruiser/ chopper? It is not the best time to buy one. Why? Read on.

Harley Davidson has been the icon of American motorcycling community since the time of inception. Harley has made inroads into the hearts of enthusiasts via an excellent marketing strategy and sale of more t-shirts than some t-shirt brands itself. 'Indian' on the other hand was the largest motorcycle manufacturer in the world when the Japanese wheels were not even born. Polaris saw the opportunity and entered the American motorcycle market with their Victory motorcycles at a time when Harley Davidson was facing quality and legal issues. What, you may think has this got to do with purchasing your motorcycle in India? Well, They all are coming to a dealership near you by 2012.

It certainly helps when Bollywood Icon Amitabh Bachhan says he is buying a Harley Davidson. A publicity stunt unmatched by any other (I have to disagree since I am a fan of Royal Enfield 'Leave Home' commercials.)


Garware motors also wants a pie of this market with the launch of the ST7, but what this Hyosung / Garware product doesn't have is legacy and appeal that a Harley Davidson, Indian, Victory or Royal Enfield has.

Royal Enfield was primarily a British icon. The bullet is reminiscent of the the pre-war times. Their ammunition business history find hint in their readapted tagline "Made like a gun, goes like a bullet" with the launch of their classic models. The company dissolved in 1971 but the Indian arm bought rights in 1995 and continued making the motorcycles. After Mr. Siddharth Lal was given the reins by Eicher India to put the company back into black, Royal Enfield has grown quite respectfully. Today Royal Enfield also has a presence in USA, Canada, UK, Germany, Middle East and other locations via signature dealerships.

The story goes a full circle now that Harley Davidson has entered India. One might not realize this to be an important step since Harley has been present in many other countries too. I wouldn't go on about how India is the fastest growing economy and it is a world superpower blah! blah! blah!. Harley-Davidson is here on an agenda. Looking at the success of Royal Enfield, they have decided to call India home. This plan wasn't made in a day but neither was it made in a decade. It all began when the Milwaukee, Wisconsin based company announced their 2009 annual results. The company was bleeding enough to dissatisfy shareholders and not last another year in all probability. Their superbike ambitions had gone horribly wrong with the purchase of MV Agusta. The American economy jumping into the well was also a major reason. The company cut off its Buell street motorcycle arm. MV Agusta was again back into Italian hands as Harley sold it off for peanuts.

Polaris owned Victory also was coming off strong since the parent company had heavy pockets. Harley's outdated designs were replaced by Victory's new flashy styles. Another big shock came in the form of the return of the world's first largest motorcycle maker 'Indian' based in massachusets.  Polaris made a big dent in the media again when it announced buying 'Indian Motorcycle INC.'from UK based Stellican LLC. Polaris was definitely out to cause damage to Harley Davidson. How victory and Indian are positioned by Polaris is yet to be seen.

According to interbrand, the value of the Harley-Davidson brand fell by 43% to $4.34 billion in 2009. On April 29, 2010, Harley-Davidson stated that they must cut $54 million in manufacturing costs from its production facilities in Wisconsin, and that they would explore alternative U.S. sites to accomplish this. The announcement came in the wake of a massive company-wide restructuring, which began in early 2009 and involved the closing of two factories, one distribution center, and the planned elimination of nearly 25% of its total workforce (around 3,500 employees). The company announced on September 14, 2010 that it would remain in Wisconsin. But with growing cut-throat competition, Harley has looked east and decided to call India their home. The company launched 12 models simultaneously showing how serious they are with this market. But the real agenda is turning India into an Export hub. A similar story of how Royal Enfield transitioned to India.

This is definitely a smart move by  Harley Davidson. The lower cost of manufacturing will lead to the company increasing their profit margins and reducing their retails prices denting the competition. But, Polaris industries being a bigger corporation reacted immidiately by announcing their entry into India by 2012. Definitely an Auto Expo debut then? Harley-Davidson has been smart enough to chalk out a two-throng plan here. Assuming how Polaris will react, Harley-Davidson has also setup a plan in Brazil. But it is the Indian plant that has helped them price the Superlow 883 model at 5.5 lacs, the cheapest Harley todate. This is keeping in line with Victory's cheapest model which is priced in the U.S. equivalent of 5.68 lacs.

Unlike Harley Davidson, Royal Enfield is more of a corporate arm of Eicher India similar to What Victory and now Indian are for Polaris Industries. The head team of Royal Enfield did hit back into the market last year with a retro design (first in 5 years). The company also revamped its old long-stroke single 350cc engine alongside the launch of the new 500cc engine. The bikes got proper disc brakes and button start to keep in business. While the top of the line Classic 500 model sells at a much lower price tag than the 883cc Harley Davidson, Royal Enfield needs to introduce bigger engines fast if it needs to have a bigger share of the market pie. It is safe to say that the company is in a safe position with a lower price tag (150000 INR against 550000 INR) atleast for now. But looking at the onslaught of other makers, It would be wise on Eicher to hit hard while the iron is hot.

While Royal Enfield has generally enjoyed a cult status in India in the absence of any other major cruiser motorcycles, the owners have had to live with Quality niggles. Also Royal Enfield's major chunk of revenues have come from the Indian Armed forces.  The company has but been smart enough to interact with the owners and fan clubs in improving the quality and technology to build a stronger foundation. It would be safe to say that bike owners have provided Royal Enfield with a status similar to what Harley Davidson has enjoyed in the United States. But unlike Harley Davidson, Royal Enfield doesn't have a prominent and cemented sales network apart from the handful of dealers here and there.

Harley Davidson on the other hand is coming of with experience in rock music tours and sale of merchandise which the competition sorely lacks. It shouldn;t come of as a surprise if Royal Enfield languishes in their sales targets while Harley climbs the ladder steadily. Polaris is yet to enter the cut-throat market but the corporate marketers need to be better prepared to make inroads against to historic icons. Victory and Indian Motorcycle's strength lies in the big bore engines but at the same time the company lacks a small capacity engine. Unlike Royal Enfield which lacks a big capacity engine. A 600-800cc engine is rumoured to be in development at UCE, the company's engine partners.  Harley Davidson is in the best situation with a larger engine range.

It remains to be seen if Polaris decided to play a dual brand strategy largely played in the car playing arena. Toyota for e.g. has Lexus and Scion, Honda has Acura, Ford has Lincoln, Gm has GMC, Chevrolet, Buick and Cadillac. Polaris may employ a similar strategy to take on both the low-end and high end or stock form and custom form of the cruiser market. Also, with the history and brand of 'Indian' (remember Burt Munro from Down under???) Polaris is now stronger than before to take the competitors on a global scale. Eicher just needs to pace up a little if it needs to stay in the race against Harley Davidson and Victory- Indian onslaught. Whatever the outcome maybe, the winner will be the Indian customer.