Salary is 10 lakh rupees, so what should I buy a car worth 10 lakh? Know the power of your pocket, this formula will work

New Delhi. Buying a new car is almost everyone’s dream. Buying a car in India is expensive as even the cheapest car starts from Rs.5 lakhs. Many people are unable to buy a car due to lack of money, while many people shy away from buying a car despite the convenience of taking it because their salary is not enough to pay the expensive EMI of the car.

To avoid this problem, you need to take a careful decision while buying a car. According to your salary, how much budget should you make for the car, here we are going to tell you about it.

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Plan car expenses according to annual income
Actually, a formula for fixing the budget for the car is quite popular. According to this formula, you should not spend more than half of your annual income on buying a car. That is, if your salary is Rs 10 lakh per annum, then you should not spend more than Rs 5 lakh to buy a car. While deciding the budget of the car, you should take into account the on-road price. This is because the on-road price is the total price that you have to pay for the car.

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For example, if your salary is Rs 15 lakh, then you can spend Rs 7.5 lakh for a car. Similarly, if the salary is Rs 20 lakh, then you can make a budget for a car up to Rs 10 lakh.

Know this formula
Another formula is very popular for planning the budget of the car. This popular formula is called 20/4/10. Accordingly, you should make 20% down payment while buying the car. Also, the EMI should not be for more than 4 years. At the same time, the amount of EMI should not exceed 10 percent of your salary.

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