I made my decision to buy a car in Feb 2010. I haven't driven on Indian roads much - other than the few days of driving lessons that I took in 2002 (just before going to US). The thought of driving a car on Indian roads, was very scary. I still wonder how people drive these giant vehicles on the road, without bumping into each other. I consoled myself when I saw these huge buses and trucks maneuvered on the roads with ease, by our dexterous drivers. (Also read: Driving on Indian roads - pleasure or pain?)
The following are some items that influenced my decision to buy a new Maruti Swift Dzire. The parameters given here should be useful for others, as well. Of course, the actual values others apply, may vary :)
Used vs New
When I made my decision to buy a car, I started looking for used cars. Since I haven't driven on Indian roads, I thought it is a good idea to buy a used vehicle - so that, I don't have to worry about the wear 'n tear or damages. Religiously, I looked at the "Classified" section in Hindu to get some understanding of the models available in the market & the price range. I visited even a couple of "Maruti True Value" exhibits to find out the "quality" of the used cars available in the market. Used cars are REALLY USED in India. Either, the cars have become very old (or) there is lot of miles on the car in a short time. If the car is relatively new or used very less, they charge you almost equivalent of the price of new cars.
Buying used cars directly from "known" people is good. Otherwise, buying used cars directly from a third-party has its associated risks. When you want to play it safe by buying used car from a dealer, you should be ready to pay the extra price. For example, Maruti True Value used cars sell you cars with 1 year warranty. However, they charge you nearly 10 - 15% more than the open market. In essence, used cars aren't very "attractive". Well, actually the smell of brand new cars mesmerized me more !
Small vs Big
Should I buy a small/compact car or should I go for a big/sedan car? Should I buy a car or should I go for a SUV/minivan? There were lots of questions.
Small cars are easier to drive in Chennai streets and city interiors. Taking a 180 degree turn in crowded/congested streets is easier, too. It is convenient for ladies & short people to drive a small car. Even from a budget point of view, small cars are very attractive and there are so many models/options available in that segment/category. But, it would be extremely hard for a 6.2 ft person (like me!) to squeeze into the driver seat. Also, it would not be convenient for a family of 5 members to sit comfortably - especially, when you have to go on a long drive. So, I ruled out the option of buying a small car.
I decided to buy a sedan, because it is spacious & at the same time, it is NOT as BIG as a SUV/mini van. So, relatively it is easier to drive on Indian roads.
Financing vs Paying by Cash
This is a "no-brainer". I straight away went for "Financing". The interest rates are very attractive and they're hard to resist. For example, for a 3-years fixed deposit banks give you an interest of 7.5%. However, for a 3 years car loan, they charge you just 8.5% interest. You are better-off investing the money in an 'appreciating' asset - instead of throwing the money on the car. I would recommend you to check with the bank where you have salary account (instead of going with the creditor that the car dealer arranges for you). Also, it is always recommended to check with multiple banks before finalizing on one creditor. Remember "When banks compete - you WIN" :) (Also read: Loan application process in India - very simple)
Banks may force you to buy an extra 'insurance' for the loan amount. Don't ever do that. It is not a must to get insurance cover for your car loan. Car, by itself is an asset. Moreover, you would be taking insurance for the car. If something happens to you, the banker can always come and take your car. If something happens to the car, you'll get the car's insurance provider pay for it. So, don't buy a separate insurance from the banker/creditor. On instances where you have to take delivery of the car "soon", bankers/creditors may force you to get insurance for speedy processing. Don't fall into the trap.
Automatic vs Manual
Cars with "automatic" transmission are very easy to drive. In fact, some of the modern automatic cars are even 'optimized' for fuel consumption. However, I wanted to be a Roman in Rome. So, I joined the "herd" :) Honestly, there were two reasons why I didn't go for a car with "Automatic" transmission. First, they were pricier than the "stick-shift" ones. Second, I wanted to be able to drive a "manual" transmission car. That way, when I have to drive other(s') cars in India, I would be able to drive them with ease.
Having driven a stick-shift car in India for a month, I feel that it is painful to drive them in "stop 'n go" traffic. So, if you are buying a car that will be used mostly in city interior roads, do consider "Automatic" ones.
Diesel vs Petrol
Petrol cars provide more driving comfort than Diesel cars. Diesel engines are noisier. If you have driven Petrol cars before and trying Diesel cars now, you'll notice the difference right away. From the point of mileage & cost of fueling, Diesel cars are very attractive. However, the cost of Diesel cars are 10 - 15% higher than Petrol cars. You should go for Diesel cars only if you anticipate driving long distances, frequently. Otherwise, it would take a long time for you to "break even" the premium that you paid for Diesel car. I did order a Petrol car initially. However, I had to change my order and settle for a Diesel car, due to the long wait time for the Petrol version of Maruti Swift Dzire.
Why Maruti?
There are so many brands available in India, today. The prices are very attractive/competitive. Almost all the car manufacturers (that, I know of) sell cars in India - Mercedes, Volswagon, Ford, Toyota, Honda, Hyundai, Chevrolet, Tata, Maruti and the list goes on ! I wanted to avoid 'premium' cars. Based on the information that I gathered from friends, maintenance costs of 'Premium' cars are HIGH. Also, the resale value is LOW. Maruti Cars provide low cost maintenance and also high resale value. The maintenace cost of Tata cars is also LOW. However, Maruti's post-sales service (for maintenance) is considered the BEST.
In fact, I did consider TATA Indigo MANZA, before settling down for Maruti SWIFT Dzire. Honda City was also very attractive in terms of features & convenience - however, it went above my budget and I also heard that the cost of parts replacement/maintenance is high. Hence, settled for Maruti SWIFT Dzire. I like the features and convenience of Maruti SWIFT Dzire (for the price that I paid!). No wonder, why Maruti is still the #1 brand in India.
How did I get adjusted to driving a car on Indian roads? How did I learn to drive a stick-shift/manual car? Lots of interesting experiences to share... wait for my next blog post :)
Also read:
Self Adjusting Traffic - Miracle on Indian Roads
Two wheeler service - Can't escape from those long lines and hours of waiting
Heavy Rain made Chennai into Venice
Sunday, September 12, 2010
Thursday, September 02, 2010
Filing Tax Returns in India - Made Easy !
I'm phobic to "standing in queues" - be it a theatre or a government office. I hate to stand in long lines, especially when things can be done from your home, over the internet, with the click of a mouse button. The thought of standing in long lines to file my tax returns made me nervous, in July. Thank God ! Indian government has brought a number of e-governance initiatives and "filing tax returns online" is one such initiative. (Also read: I love IRCTC.CO.IN)
I didn't have to file tax returns in India for the last several years, since I didn't have any income in India. The last time I filed tax returns in India, I had to stand in the queue for at least 2 hours to just submit the application and to get a stamped acknowledgment. I was thrilled to hear about the online service for filing tax returns. I initially envisioned it to be an equivalent of Turbo Tax or Tax Cut - but, it is no where close to those services. However, it is lot better than the hard copy "Saral form" that I filled years ago.
I got some tips from my colleagues and decided to file the tax returns online. All you need to do is download an Excel Spreadsheet, fill the relevant information from Form 16 and upload it online. You'll get an acknowledgment right away. In addition to doing this, you need to "mail" the hard copy to NSDL processing center. The process involved is very simple and you can complete it in just an hour or so. The refund amount gets automatically deposited in your bank account, if you provide bank account details. I was not eligible for any refunds and hence, couldn't validate that work flow. But, I heard that you DO get refunds from the IT department :)
In the past, I had to rely on my friends to understand the different fields in the Saral form. Having filed tax returns in US on my own, several times, I could now understand the fields easily. Moreover, the Excel Spreadsheet has lots of 'intelligence' built-in. It does all the basic checks that prevent you from entering wrong data.
Overall, I liked the online interface for filing tax returns. Someday, I want it to be as intuitive and easy as Turbo Tax / Tax Cut.
Also read:
Filing tax returns in US after your R2I - Some tips
I love IRCTC.CO.IN
Getting a PAN card in India - Not Easy!
I didn't have to file tax returns in India for the last several years, since I didn't have any income in India. The last time I filed tax returns in India, I had to stand in the queue for at least 2 hours to just submit the application and to get a stamped acknowledgment. I was thrilled to hear about the online service for filing tax returns. I initially envisioned it to be an equivalent of Turbo Tax or Tax Cut - but, it is no where close to those services. However, it is lot better than the hard copy "Saral form" that I filled years ago.
I got some tips from my colleagues and decided to file the tax returns online. All you need to do is download an Excel Spreadsheet, fill the relevant information from Form 16 and upload it online. You'll get an acknowledgment right away. In addition to doing this, you need to "mail" the hard copy to NSDL processing center. The process involved is very simple and you can complete it in just an hour or so. The refund amount gets automatically deposited in your bank account, if you provide bank account details. I was not eligible for any refunds and hence, couldn't validate that work flow. But, I heard that you DO get refunds from the IT department :)
In the past, I had to rely on my friends to understand the different fields in the Saral form. Having filed tax returns in US on my own, several times, I could now understand the fields easily. Moreover, the Excel Spreadsheet has lots of 'intelligence' built-in. It does all the basic checks that prevent you from entering wrong data.
Overall, I liked the online interface for filing tax returns. Someday, I want it to be as intuitive and easy as Turbo Tax / Tax Cut.
Also read:
Filing tax returns in US after your R2I - Some tips
I love IRCTC.CO.IN
Getting a PAN card in India - Not Easy!
Friday, August 27, 2010
Getting a PAN Card in India - Not easy !
What does it take to get a PAN card in India? A lot... I had some interesting experiences in my quest to get a PAN card, in India. The experiences that I had proves that you need lots of patience, whenever you are dealing with Indian government. Here is how the story goes...
The first time I applied for a PAN card was in 2002. There were long queues in income tax offices, especially working class/employed folks waiting to submit their PAN card application. As a true citizen, I stood in line and applied for my PAN card. After nearly 3 months, Income Tax department returned my PAN card application saying that my photo in the application was "damaged". The leftover glue from another application has completely damaged my photo. I was frustrated to see that my application was rejected due to no fault of mine. I was about to leave to US for my job and I ditched the idea of getting a PAN card. (Also read: Can't escape standing in long lines Got the two wheeler driving license - after hours of waiting)
Years later, Indian government made it mandatory for DEMAT account holders to furnish PAN card details. Though I was not using the account, I had to furnish PAN details to prevent the account from getting locked. In 2007, I went to UTI services to apply for a PAN card. They got my money, application, & photograph and said that I'll receive my PAN card in just 2 weeks. I liked the fact that I didn't have to stand in long lines to apply for the PAN card. In two weeks, I got my PAN card, but... my birth date wasn't correct in that. My frustrations grew up again. But, I didn't bother to apply for a correction or to get a new PAN card. I started using that & nobody noticed/complained about the incorrect birth date.
In 2010, when I applied for a loan, the loan processing agent promptly noticed the mismatch in my birth date. They didn't make it a big issue - but asked me to correct it soon. So, I thought I should get my birth date corrected in the PAN card. I applied for a "correction" online from NSDL website & couriered all my documents to NSDL processing center. NSDL provides status of the processing, online - which is good. Though I wanted to just change my birthdate, they had asked for an address proof. The address proof that I gave had my name as "Saravanan V". I was asked to mail an address proof which contains my "full name". They had an option to send a soft copy over email. After I sent the scanned copy of the address proof, they changed my application status to something like "Processing complete. Request forwarded for PAN card change". The department that does the PAN card modifications, changed the status to "Mismatch between birthdate in the database and the birthdate in the application". The jokers have ignored the fact that my application itself was to change the "birth date" in the database. I tried to reach the NSDL Customer Support number in the website/application form. Unfortunately, the number itself was NOT in service. I sent an email to them saying that the purpose of my application itself was to change the birth date in the database and I had provided all the relevant details/proofs for it. Thank god, they realized their mistake on seeing that email. They didn't ask me to send any other documents and issued me a PAN card with the right birth date. Atlast, I now have a proper PAN card.
Though online services are available for many government transactions, the quality of such services is still poor. Mailing a 'hard copy' is a must, though you submit your application online. However, it is "way" better than having to stand in long lines for just "submitting" your application. On that front, our government has made great strides !
Way to go, India.
Also read:
10 things to know if you are thinking of Returning to India (R2I)
How much money do you need to R2I?
The first time I applied for a PAN card was in 2002. There were long queues in income tax offices, especially working class/employed folks waiting to submit their PAN card application. As a true citizen, I stood in line and applied for my PAN card. After nearly 3 months, Income Tax department returned my PAN card application saying that my photo in the application was "damaged". The leftover glue from another application has completely damaged my photo. I was frustrated to see that my application was rejected due to no fault of mine. I was about to leave to US for my job and I ditched the idea of getting a PAN card. (Also read: Can't escape standing in long lines Got the two wheeler driving license - after hours of waiting)
Years later, Indian government made it mandatory for DEMAT account holders to furnish PAN card details. Though I was not using the account, I had to furnish PAN details to prevent the account from getting locked. In 2007, I went to UTI services to apply for a PAN card. They got my money, application, & photograph and said that I'll receive my PAN card in just 2 weeks. I liked the fact that I didn't have to stand in long lines to apply for the PAN card. In two weeks, I got my PAN card, but... my birth date wasn't correct in that. My frustrations grew up again. But, I didn't bother to apply for a correction or to get a new PAN card. I started using that & nobody noticed/complained about the incorrect birth date.
In 2010, when I applied for a loan, the loan processing agent promptly noticed the mismatch in my birth date. They didn't make it a big issue - but asked me to correct it soon. So, I thought I should get my birth date corrected in the PAN card. I applied for a "correction" online from NSDL website & couriered all my documents to NSDL processing center. NSDL provides status of the processing, online - which is good. Though I wanted to just change my birthdate, they had asked for an address proof. The address proof that I gave had my name as "Saravanan V". I was asked to mail an address proof which contains my "full name". They had an option to send a soft copy over email. After I sent the scanned copy of the address proof, they changed my application status to something like "Processing complete. Request forwarded for PAN card change". The department that does the PAN card modifications, changed the status to "Mismatch between birthdate in the database and the birthdate in the application". The jokers have ignored the fact that my application itself was to change the "birth date" in the database. I tried to reach the NSDL Customer Support number in the website/application form. Unfortunately, the number itself was NOT in service. I sent an email to them saying that the purpose of my application itself was to change the birth date in the database and I had provided all the relevant details/proofs for it. Thank god, they realized their mistake on seeing that email. They didn't ask me to send any other documents and issued me a PAN card with the right birth date. Atlast, I now have a proper PAN card.
Though online services are available for many government transactions, the quality of such services is still poor. Mailing a 'hard copy' is a must, though you submit your application online. However, it is "way" better than having to stand in long lines for just "submitting" your application. On that front, our government has made great strides !
Way to go, India.
Also read:
10 things to know if you are thinking of Returning to India (R2I)
How much money do you need to R2I?
Saturday, July 24, 2010
World Classical Tamil Meet 2010 - Semmozhi Maanadu
I never imagined that I would ever attend an event like the famous World Classical Tamil Meet. But I did. I got galvanized by the Classical Tamil Meet's theme song "Piroppokkum ella uyirkkum". I was following the developments in Coimbatore for World Classical Tamil Meet, and got very excited. I decided to do a flying visit to Coimbatore.
I wasn't sure if I would get any train/bus tickets because of the last minute trip. To my surprise, there were tickets available in popular travels such as KPN & Parveen. I booked my trip through Parveen travels and reached Coimbatore on the 2nd day of the Tamil Meet. I reached Gandhipuram and rented a hotel room for an hour, to get ready. I got ready, had breakfast and took a bus from Gandhipuram bus stand to Codissia. There were several special buses to Codissia (bus fare Rs.9). I reached the Tamil Meet venue by 9.30 am or so.
The whole city had a festive look. The roads were neatly laid; walk ways were built on both the sides of the road; bus stops had proper shelter; temporary rest rooms were available along the roads; the walls on the highways were painted to indicate the classical Tamil culture & heritage. The venue also had all arrangements to accommodate the massive turnout of people. The venue had proper drinking facilities, clean restrooms with water, lots of options for dining and enough security arrangements. There were policemen deployed in large numbers along the highways and in the venue. (Also read: Traveling near restrooms isn't fun)
The weather on the 2nd day was also very pleasant. I visited the "Iniyavai Narpathu" tableaux, first. It was spectacular. The artists had done a stupendous job in crafting those tableaux. Then, I spent some time under the shyamiyana watching a dance performance by Lawrence's troupe.
Though the meet was dominated by DMK party cadres & pro-DMK tamil enthusiasts - there was enough things for other people to enjoy, too.
The 2 key exhibits (Ancient articrafts exhibit & Internet exhibit) were opened only on the second day. People had gathered in large numbers in front of the exhibits. This was my first time in a huge crowd like that and the experience was simply amazing. There was hardly any space for even breathing and you get pushed/pulled in all directions. Surprisingly, there were families with kids in the crowd and they were getting crushed. Policemen were trying to do their best in controlling the crowd - but in vain. After waiting for nearly an hour, I got entry into the exhibit. I liked the exhibit that had collection of ancient articrafts. Internet exhibit just had a bunch of stalls trying to promote/demo their Tamil software.
For lunch, I went to the 'subsidized lunch stall'. For just Rs.30, they served two rice varieties, 1 bottled water, 1 laddu, chips & pickle. I heard that the other 2 lunch stalls had more options and were pricey.
As time went on, people started to pile up in large numbers. The whole Tamil Meet venue was flooded with people, mostly the localities from Coimbatore. I was wondering what would happen, if there is an emergency situation and how would people evacuate from the venue. I was in the Tamil meet venue until 4 pm and started heading back to the bus stand to catch my bus to Chennai. It was hard to find a public transport to get to the bus stand. I was afraid that I have to end up walking 3Kms. Luckily, I managed to get hold of a 'share auto' which charged Rs.100 for a ride (shared by 3 people). I took a couple of hours nap at the bus stand and boarded by bus at around 7 pm. (Also read: Share autos - boon or bane?)
Tamilnadu government had spent crores & crores of money on this spectacular event. The arrangements for the event were flawless and there was a huge turnout of people. However, I'm still wondering whether the event was conducted for really promoting Tamil or it was just a DMK party get together/publicity campaign.
Also read:
Infoquest 2010 in GCT, Coimbatore
Kovai Trip - Maruthamalai/GCT visit
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