Car Budget as per Salary: Buying a car is one of the biggest life expenses for any person. People collect little money throughout their life to buy a car. To buy a car, it is most important to prepare a budget, this budget should be according to your income, so that you do not have to face trouble later. As a rule, you should not spend more than 20-30% of your earning. If you are having trouble in deciding the budget for your car, then today we are going to tell you some important things here.
spend that much
While making a budget to buy a new vehicle, you must keep in mind that the cost of your vehicle should not be more than half of your annual income. So that you do not have 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 is your annual income, you can decide the budget of your car by half of it. Fix the price of the car according to its on-road price, because you will have to pay that price.
Keep in mind the 20/4/10 rule
If you want to buy a car on loan, then you must follow the rule of 20/4/10. This 20 means that you must 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 be more than 10% of your monthly salary. While buying a car, you should make a budget keeping this rule in mind.