Car Purchase Rule: Buy Thar or WagonR? How much salary is there to buy a car? Everything tells 20/4/10 Rules – What is the 20/4/10 Rule of Buying and Financing Car Guideline for Car Buying Tuta

Aman has a car, so now I should also buy a car. Most of the people in our country buy a car in the circle. Some people connect it with their states symbol. Which is a financially wrong decision, you can get caught in the loan trap. So who is necessary to car? When is the car necessary? Whether or not your salary is worth buying or not, only after knowing everything, anyone should think about buying a car.

Actually, the car loan is easily found, then people buy a car without thinking. Some people first buy a car as soon as they get a job. Which you can call a wrong decision. Although buying a car is not wrong, but financially you are able to buy a car, it is measured by a particular rule.

Because the car is such a thing, as soon as it comes out of the showroom, its price starts decreasing. That is, the price of the car decreases month by month. In such a situation, before taking the car, it has to be thought that it is necessary for you to first buy a car.

Most people buy cars for personal use. But whether your work can also be done without a car, it will have to be considered first. Not only this, if you have decided that the car is to be purchased, then how much the car should be worth it, it does not be on your choice, but on your salary.

What is the rule of 20/4/10?
There is a quite popular rules for buying a car, which tells how much a car should be taken according to your salary, and how much EMI should be. This popular rule is known as 20/4/10. It guides you according to your income.

In fact, 20/4/10 means 20 means When you buy a car, make at least 20 percent down payment. If you do up to 30 percent then it will be better. But most people in our country do not do this. That is, before buying a car, there should be 20 percent down payment amount in your pocket.

The 20/4/10 Rule means 4 For how many years you should take a car loan. According to the rule, there should be a maximum period of 4 years car loan. Whereas in us most people in the country take a car loan for 5 to 7 years. The rule says that the car loan EMI should be repaid within four years.

In 20/4/10 Rules 10 means that Only 10 percent of your salary should be EMI of car loan. If your salary is 1 lakh rupees, then the car loan EMI should be around 10000 rupees. On the other hand, if your salary is 1 lakh rupees and you have taken a car of 25 lakh rupees, then financially this decision is wrong.

Now let us understand from an example that if 1 lakh rupees is a salary, then how much a car should be taken, and how much EMI should be.

First of all, know that if there is 1 lakh salary, then there should be an EMI of car loan around 10 percent ie 10 thousand rupees. The financial rules say that the total price of your car should be 7 to 8 lakh rupees. Out of this, make 20 to 30 percent down payment, and get the remaining amount EMI for 4 years. You can also take the base model of the car instead of the upgraded model, because it will be cheaper to you.