There are multiple luxury car brands in India from Mercedes and Volvo to Audi and Porsche. They can cost you a minimum of ₹40 lakh. Therefore, you need to do some financial planning before buying such a car. Here are 3 tips to fund a luxury car in India.
Fix a Budget to Buy a Luxury Car
What are the expenses to keep in mind when you plan to bring home a new car? It is not just the cost of purchasing a car. There are various other expenses that you need to make for your car in 5-10 years to come. These include:
- Registration tax
- EMIs of a car loan (if you take one)
- Car insurance premium
- Road tax
- Car maintenance costs
- Monthly fuel expenses
- Servicing cost
Although you can’t estimate all the costs precisely, try to have a rough idea of them. But you can learn the accurate amount of the car loan EMIs payable. For that, use an online car loan EMI calculator on the official website of the lending bank. Depending on the car’s cost, choose a suitable loan amount. Then simply enter the chosen loan amount, tenure and interest rate to check the auto-calculated exact EMI amount. After estimating all the costs, set a budget accordingly for the new car.
Cut Unnecessary Spendings
You can save to some extent for your new car by trimming unnecessary spendings. Try these tips:
- Avoid ordering food. Instead, cook meals at home. This can help save on food costs and would be safe, considering the current situation.
- Make sure to shop with a list and stick to it. That way you’ll be prioritising your necessities and won’t exhaust your money on less important needs.
- Cancel memberships and subscriptions that you don’t use or aren’t absolutely necessary. These can include unused gym memberships, entertainment subscriptions and cable costs of your TV.
- Reduce your debt. For instance, if you pay heavy interest on a home loan, transfer its outstanding balance to a lender offering a lower interest rate. Then you can reduce the interest burden, and therefore, the EMI amount payable.
Take a Car Loan
The cost of buying a new car is the largest expense associated with the car. So, consider opting for the best bank for a car loan to finance the purchase of your desired car. Then you can enjoy the following loan-related benefits:
- A loan amount up to ₹50,00,000 based on your income and banking to smoothly cover a luxury car’s cost
- A tenure from 11 months up to 10 years
- Up to 100% on-road funding
- Zero foreclosure charges
- Attractive interest rates
- Hassle-free application process
- Doorstep loan assistance offered by the lender’s associates
- Up to 90% of the ex-showroom price of a car can be financed with the loan
After you receive a car loan, make sure to pay the correct amount of EMIs regularly. Just use a car finance calculator to check the accurate EMI amount. Using the calculator can also save the time needed in manual calculations.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.