Know when and how much Car Loan you should take? Buy your first car with this formula.
Everyone wants to buy a car. You can buy a car any day you want, but before buying a car, you should know when you should buy a car. It is also important to know how much car should be bought. Although there is no rule for this, if you want your budget not to get spoiled, then you have to proceed under a formula and keep some things in mind (Car Buying Tips).
Here we are talking about those people who are planning to buy a car by taking a car loan. Those who take a car loan should avoid buying a car more expensive than half of their total salary. Suppose your salary is Rs 10 lakh per annum, then you should try not to buy a car more than Rs 5 lakh. If you want to buy an expensive car, then first wait for the salary to increase, otherwise your budget may get spoiled.
At what stage of your career should you buy a car, it will depend on how much your salary is and which car you want to buy. When your total salary is double the price of your favorite car, then you can easily buy a car by taking a car loan. Many people think that if you have to take a loan, then why think too much about it, if you buy a very expensive car, then your budget can be spoiled.
If this formula is followed, then the budget does not get spoiled. There are three things in it, The first is that you should give about 20 percent of the price of your car in a down payment. The second point is that the car loan you take should not be for more than 4 years. The third point is that the EMI of the car loan should not be more than 10 percent of your salary.
First of all, try to make as much down payment as possible while buying a car. By this, you will have to pay less interest. In such a situation, if you want, you will be able to reduce the period of your loan or reduce your EMI. If you already have a car, then instead of buying a car by taking a car loan, think of buying a car by saving and investing money.
If you want to save money, then do not get into the trap of buying the latest model. The latest car comes with a higher price or you can say that there are no discounts on it. On the other hand, after some time, you get a good discount on the car. Also, you get to know how the performance of the car is, so it becomes easier for you to decide which car to buy.
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