Do You KNOW Investing in mutual fund via (SIP) can help you buy that car of yours and more! Know HOW?
Your dream to buy a new car centers on the money you are able to save and the connected monthly installments (EMIs) that you are ready to pay. However, what most people don't realize is that investing in mutual fund through systematic investment plans (SIP) can help you buy a car of yours and more!.
This means that if you want to buy this car with a car loan, you will get a loan of around Rs 4.5 lakh. Banks generally finance only up to 80% of the total value of the car. The RTO, taxes and insurance money has to be paid up by the buyer.
Simply put, approximately Rs 2 lakh will have to be funded by the car buyer if the decision is to take car loan from a bank.
For a five year car loan at an interest rate of 10.5% per annum, your monthly EMI on this car loan for Rs 4.5 lakh loan would come to be around Rs 10,500/- per month.
This means that for a loan of Rs 4.5 lakh, the car buyer would end up paying Rs 6,30,000 to the bank at the end of five years of car loan repayment. The total cost of the car would also jump from Rs 8,37,000 (approx.).
However, a little bit of onward thinking can not only help you save this interest but do a lot more.
Buying a car is not a quick decision for most buyers and one must plan ahead.
Since you have a dream to buy a car, one should start planning early. The car loan repayment is a maximum of five-year process let’s just take five-years as the base case scenario.
Also, as the monthly EMI on the car mentioned above is coming to Rs 10,500, one shall take this as a monthly investment target in an SIP.
Now, investing Rs 10,000 each month of a period of five years alone would help you save a principle amount of Rs 6 lakh! However, since we are talking about investing in mutual funds via SIPs, an equity mutual fund averaging around 10% return would increase your savings to Rs 7.8 lakh at the end of five years!
With Rs 7.8 lakh, you cannot only buy the car with no bank loan but also end up saving Rs 1.2 lakh (approx.)! (Rs 7.8 lakh minus Rs 6.57 lakh).
With this money, you can also have the choice of buying a Luxury car tooo!
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Planning to buy a car but is confused about which one to go for, Carkideal expert team is here to help you out in grabbing the best car deals. If you have geared up to buy one of the best luxury cars, then it is high time that you seek guidance and advice from professional car experts.
If you plan to buy luxury cars, you have to have a vigilant eye and careful, for it involves excellent investment. CARKIDEAL is one such place that helps you pick the car of your choice without any hassle.
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