Should one take car loan

Should one take car loan

So this is a very interesting topic in context with personal finance.In this article I will be discussing that should one take car loan or is it worth taking a car loan because it matters a lot when you are a middle class family in India. read this full article deeply then decide with your understanding, so lets begin.

should one take car loan

As I am covering this topic in context with personal finance and assuming that this is meant for middle class person so I will give my views according to it so keep this points in your mind.First of all thing you have to ask yourself that why you are buying car, what is the purpose and then find the answer honestly and truly. behonest with yourself. If you are buying car just for showing off to your society,family and relatives or looking to other peoples near you then just drop off your idea and stop. It is a very common problem in India that they are not aware of personal finance and just keep on buying unnecessary things with the help of EMI or credit card. you didn’t even know that EMI or credit card is a silent killer to your savings even Warren Buffet ( world’s 2nd richest person) said thisshould one take a car loan. Now I will tell the math behind this,lets think smartly. There is 24 hrs in a day you will use your car maximum 1 hr a day so your car is standing 23 hrs a day. also you are paying for parking,maintenance,insurance and petrol that becomes extra burden. also you are paying EMIs with respective interest rate. now this is killing your budget and you even didn’t notice it. Also car is depreciating asset means value will keep decreasing when compared to principle amount. now think wisely if you chosen public transport and have invested that money equal to the EMI in mutual funds then you will end up into saving much more money than the principle amount of car.

But if you needed a car really means it is a necessity for you then just go for it. but it is totally depends on you that how you decides that you really needs a car at what extent. my suggestion is that if you can live with then just leave it because it will really kills your savings. think wisely as it all depends on you. you can read this if need more help on deciding what to do, if you need tips on car loan then just read this.

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Author: Sumit Gupta

I writes blog related education and technology and wants to create awareness related to this topic.

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