look news india
Nowadays almost everyone has a car. Some of these people have planned to buy their dream car. In today's time, everyone wants to buy their dream car. For this, they often forget to check their budget, due to which they have to face financial problems later. In such a situation, while buying a car, it becomes important to know about the best rule of the market (20-4-10 rule in car loan).
It is often seen that customers buy expensive cars for home with the help of car loan. And then while paying their EMI (Car Loan EMI), their condition worsens. Many times a loan has to be taken. In such a situation, you should be aware of the 20/4/10 rule while buying a car.
First of all know what is the rule of 20/4/10.
20% advance payment
You should make a down payment of at least 20% of the car price on a car loan. This reduces your interest and financial pressure by reducing the loan amount for your car.
4 loan period
For information, let us tell you that while buying a car on loan, it is very important to keep in mind the loan period. The shorter your loan tenure, the less interest you will have to pay. The loan tenure for a car should be limited to 4 years (48 months). This helps you keep control of the interest till the maturity of the loan and you avoid paying interest in the long run.
Keep EMI only 10 percent of salary
What is the EMI (Car Loan EMI) whenever you buy a car on loan? It is very important to take care of this. You are buying a car. You have to keep in mind that the EMI should be only 10 percent of your monthly income.
For example, if you earn Rs 1 lakh per month, your EMI should not exceed Rs 10,000. Due to high EMI, your budget can get disturbed. There are many other expenses involved in driving a car apart from just EMI. So try to keep the EMI (reduced car EMI) to a minimum.
Pay special attention to this
Experts believe that most people want a gleaming SUV car. It is also true that new car buyers in the country are buying SUVs in large numbers. However, you need to be practical about the new car. Because when a customer makes a purchase keeping in mind his budget and maintenance of the car, he does not have to face any kind of problem in future.
He says that petrol cars are cheaper than diesel cars. However, the price of petrol in the market is higher than diesel. Petrol car costs less to maintain, whereas diesel car costs more to maintain.