Periodic expenses2/29/2024 Such pragmatic steps would go a long way to ensure you continue enjoying the car without exerting undue pressure on your finances,” says Adhil Shetty, CEO,. You can do so by not breaching your budget, or going for a cost-effective vehicle or even a pre-used car. your car loan EMI+ other loan EMIs put together) do not exceed 40% of your monthly household income. If your income channels have not been impacted by the pandemic, and you’re planning to buy a car on loan, ensure your total debt commitments (i.e. Hence, “one must exercise caution before going ahead with this big-ticket purchase. Whatever be the case, financial experts say that buying a car is one of the most significant moments of our lives. Thus, if you are living in a remote area where there is shortage of public transport, you might put in extra up-gradation cost for your comfort. Modes and frequency of public transport is also important. Sometimes the distance to be travelled is so long that you may prefer travelling in your own car. ![]() The other factor is the distance to be travelled daily. Still the cost of owing a car will be substantial compared to commuting by public transport, and this cost will increase further if you plan to buy a costlier car. Likewise, if you decide to drive on your own, you will again save on the driver’s cost. ![]() For instance, if the tenure is increased to, say, 7 years, the EMI will come down by Rs 3,290 a month to Rs 10,737, but your total interest payable will increase by Rs 60,297 to Rs 2,01,891. No doubt, the cost of car ownership will go down in case you decide to increase the tenure of the loan. So the cost to upgrade to car from public transport in this case will be Rs19,000 per month, that is the difference between the total monthly cost associated with owning a car and using public transport. ![]() Again suppose you spend Rs 10,000 on public transport (like auto). Add to these the monthly average of maintenance and depreciation, and the sum total of all these expenses will be around Rs 29,000. In this case the EMI of your car will work out to around Rs 14,027 (assuming all other charges to be zero).Then suppose your monthly expenses on fuel, parking and driver are likely to be Rs 3,000, Rs 1,500 and Rs 10,000, respectively. Suppose for a Rs 8.5-lakh car, you are planning to take a Rs 7-lakh car loan 7.5% per annum for 5 years. How to build wealth through real estate investment
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