auto news desk, Buying a car is one of the biggest life expenses for any person. People collect very little money to buy a car in a lifetime. It is most important to prepare a budget for buying a car, this budget should be according to your income, so that you do not have to face problems later. As a rule, you shouldn’t spend more than 20-30% of your earnings. If you are having trouble in deciding the budget of your car, then today we are going to tell you some important things here.
spend that much
While making a budget for buying a new vehicle, you must keep in mind that the cost of your vehicle should not exceed half of your annual income. So that you don’t get into trouble later. For example, if you earn 20 lakh rupees annually, then the cost of your car should not be more than 10 lakh rupees. Or if whatever your annual income is, you can budget half of that for your car. Fix the price of the car according to its on-road price, because that is the price you will have to pay.
Keep in mind the 20/4/10 rule
If you want to buy a car on loan, then you have to follow the rule of 20/4/10. This 20 means that you will have to pay at least 20% of the cost of the car as downpayment. 4 means that you should not take a car loan for more than 4 years and 10 means that your car EMI should not exceed 10% of your monthly salary. While buying a car, you should make a budget keeping this rule in mind.