New or used?

A new car costs the most in its first two years, when depreciation is steepest. A two or three year old example of the same model typically offers most of the remaining life for a considerably smaller outlay, which is why the used market is where most value sits.

New still makes sense when you want a full warranty, a known history and current safety equipment, or when supply of the used variant you want is thin enough that prices have converged.

What to check on a local specification

Locally assembled cars are frequently decontented against the same model sold elsewhere — fewer airbags, no stability control, simpler interior materials. This is worth checking specifically rather than assuming the specification matches the model's international reputation.

Compare the actual feature list of the variant you are being sold, not the model line. Trim levels differ more than the badge suggests.

• Number of airbags and whether stability control is fitted
• Braking system specification
• Warranty length and what it actually covers
• Delivery timeline and whether the price is protected against increases
• Registration and token tax costs for that engine capacity

Budget for the full cost

The on-road cost is not the showroom price. Registration fees scale with the vehicle's value — 1% up to 1000cc, 2% from 1000cc to 2000cc and 4% above that in Punjab — and token tax, income tax and number plate charges follow.

Use our token tax calculator to estimate the registration and annual tax position before committing, and the loan calculator if you are financing.