ilmscore | When Should You Buy Your First Car? | CA Rachana Ranade

When Should You Buy Your First Car? | CA Rachana Ranade

Published: 2022-07-09
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
Individuals earning below 6 lakhs annually, especially sole breadwinners, should not buy a car and consider renting instead.
"if a person's income is below 6 lakh assuming that he or she is the sole bread earner in the family with some responsibilities then ideally this is not the right time to buy a car"
Car Purchase Eligibility (Income Below 6 Lakhs)
Pending
Car loan EMIs should not exceed 10% of one's total monthly income.
"out of your total income not more than 10% should go towards the repayment of EMI for your car loan"
Car Loan Repayment Rule
Pending
To save for a 1,20,000 rupee down payment, one should systematically set aside 17,500 rupees per month, which would take approximately seven months.
"ideally I should be systematically keeping aside 17,500 so that at the end of seven months I will have a pool of roughly 1,20,000 rupees which I can utilize to do the down payment"
Car Down Payment Savings
Pending
Business owners may find it advantageous to purchase a car due to tax benefits such as depreciation and loan interest deductions.
"if you are a businessman this one or two angle come as an extra point while taking that final decision"
Car Purchase for Business
Pending
Business owners may opt for a car loan even if they can afford a cash down payment, if they believe they can earn a higher return (e.g., 10%) on their capital elsewhere compared to the loan interest rate (e.g., 8%).
"assume I can get a car loan at 8% while I believe that I can generate at least 10% return from my own business"
Car Financing Decision (Business Owners)
Pending
Mercedes' Star Agility program guarantees up to 60% of the car's value as a buy-back price.
"Mercedes has launched its star agility program which assures you up to 60% of the car value as the buy-back price at the time of purchase of the car"
Mercedes Star Agility Program
Pending
The monthly payments under Mercedes' Star Agility program can be up to 40% lower than standard financing options due to the assured buy-back value.
"the monthly commitment is up to 40% lower as compared to the other standard financing options"
Monthly Commitment with Star Agility Program
Pending