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Buyers often get confused after seeing the huge difference in the price of base and top models of the same car. After all, what is it for which companies charge Rs 5 to 10 lakh more? Is it just a game of sunroof and big screen or is there some bigger mathematics behind it regarding engine and safety? In this article, know the real reason for this huge difference in prices and the 'Golden Rule' which will tell you which variant is the most value for money according to your budget and needs.
When we see an advertisement of a car, its base price looks very attractive. But as soon as we go to the showroom and choose the 'top model' with the features of our choice, the price suddenly increases by Rs 4 to Rs 8 lakh. Sometimes the price of the top model is up to double that of the base model. After all, despite having the same car, same chassis and same name, why is there such a huge difference in prices? And which variant is best for a discerning customer to choose? Let us understand in detail.
In most cases, the base model has a simple 'Naturally Aspirated' (NA) engine, while the top model has a more powerful turbo engine. Moreover, the base variant often comes only with a manual gearbox, while the top variants get the option of automatic (AMT/DCT/CVT) which costs significantly more.
Safety in today's new cars is not limited to airbags only. Top models come with features like ADAS (Lane Keep Assist, Auto Emergency Braking), 360-degree camera, Tire Pressure Monitoring System (TPMS) and 6 airbags, which increase the cost of the car by lakhs.
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Sunroof, ventilated seats, ambient lighting, large touchscreen, premium sound system and leatherette interior—these are the things that make the car luxurious. Companies also charge huge profit margin for these premium items.
The base model has simple steel rims and halogen bulbs. Whereas the top model is provided with diamond cut alloy wheels, LED headlights, and chrome finish, which completely changes the look of the car.
In India, tax slabs change according to engine capacity and features. If the top model has a bigger engine or longer length, then the tax on it is also higher than the base model.
According to experts and market trends, buying a 'mid-variant' or 'second-top' model is the most profitable deal.
Mid variants often have all the essential features (like touchscreen, reverse camera, steering controls and alloy wheels) that are actually required.