What is the right salary to buy a car?

1. Follow thumb rules. There is a thumb rule of not spending more than half of your annual household salary on the car. An individual earning Rs 10 lakh a year should at best buy a car worth Rs 5 lakh.

How much should I spend on a car vs income?

If you’d like a cheap, affordable and simple vehicle that’s good enough to get to and from work, budget about 10 to 15 per cent of your annual income. If you’d like a safer, more reliable and more comfortable car for travelling to and from work and on using on weekends, budget about 20 to 25 per cent of your income.

How much should I spend on a car based on salary India?

The answer to this question is the thumb rule of not spending more than 50\% of your annual salary. Whether to consider the net income or gross income, it’s up to you. If your annual income is Rs. 10 lakhs, you can settle for a budget of Rs.

Is there any good car in Rs 10 to 15 lakhs?

In the past few years, a lot of good options have been launched in the Indian car market that are priced between Rs 10 to 15 lakh. In terms of numbers, the Indian car market has as many as 32 different car models from 13 manufacturers on sale in this budget.

How much does a car depreciate after the first year?

After the first year, depreciation of used cars can slow to around 9\% to 12\% each year for some models. Here’s the big one: If a brand-new car is worth about 20\% less after the first year, why not buy a car that’s almost brand new and potentially save some money?

Should you get a lower-cost used car loan?

Depending on your financial situation, you might have a better chance of getting approved for a lower-cost used car loan, especially if you’re able to put down a large down payment.

Is it cheaper to finance a 1 year old car?

If there isn’t a big difference in cost between a new model and the 1-year-old-version of the same model, you may find that financing the used car is more expensive. While the older model will likely cost less, interest rates on used car loans are typically higher than loans for new cars.

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