Car Buying Tips: If the salary is less than 1 lakh, then buy a new car or a used one? understand full math here
Car Financial Values: Nowadays everyone wants to have their own car. People buy a new car as soon as they get a new job. For this many people take loans from banks. At the same time, some people think it is right to buy a second-hand car in the beginning. The question that comes to mind for many people is that if your salary is less than Rs 1 lakh, then should you buy a new car? Or buying a used car would be fine for you. Let us try to understand the answer to this question today.
If you live in a big city then a cab facility is available there. Nowadays, cabs have reached many small towns as well. But even after this, if you want to buy your own car, then first you have to look at your budget. In this, your income, job security, and responsibilities will all have to be taken into account. According to experts, the EMI of the car should be 7 to 10 percent of your salary. Because a major part of the salary goes towards your everyday things and savings. In such a situation, do not spend more than 10 percent of the salary on the EMI of the car.
If we talk about a middle-class family, they usually plan to buy a car with a budget of up to Rs 7 lakh. Like Maruti WagonR, Tata Punch, or any other car in this budget. In this case, pay Rs 1 lakh at the time of the down payment. The remaining 6 lakh rupees get ready to pay the EMI. Car loans are generally taken for a tenure of 5 to 7 years. Here let’s assume we take a car loan for 5 years. On which an interest of 8.5 percent is charged. In such a situation, the EMI for 5 years was Rs 14,362. That is, you will have to spend a total of Rs 8,61,694 in 5 years. The interest in this will be Rs 1,61,694.
Understand maths like this
New car price — Rs 7 lakh
Down payment — Rs 1 lakh Loan amount –
Loan tenure of Rs 6 lakh
– 5 years
Interest Rate — 8.5% p.a.
EMI — Rs 14,362 per month
Total Payment — (Down Payment+EMI)= (1, 00,000+8,61,694=Rs 9,61,694)
Buying a new car should be avoided if your salary is less than Rs 1 lakh, or 20% of your salary goes towards paying the car EMI. Buying a used car would be the right decision for such people. The car you buy new up to Rs 7 lakh, you will get the same car that lasts for 2–3 years up to Rs 3 lakh. Let us understand the math of this also.
Used car cost- Rs 3 lakh
Down payment — Rs 1 lakh Loan amount –
Loan tenure of Rs 2 lakh
– 5 years
Interest Rate — 9%
EMI per year — Rs 4,152 per month
Total payment — (Down payment+EMI)= (1, 00,000+2,49,100= Rs.3,49,100)
Read More- Car Buying Tips: If the salary is less than 1 lakh, then buy a new car or a used one? understand full math here
