Purchasing a Car without a Loan is now Possible
Nowadays, everyone dreams of owning a car. However, it’s not always financially viable for everyone. Buying a car is a significant financial decision, second only to purchasing a home. This requires considerable financial planning as purchasing a car requires a considerable lump sum. Usually, people take out loans to buy a new car. However, with careful planning, it’s possible to buy a new car without taking a loan from the bank.
Why This Matters
If you wish to buy a car and don’t have enough money, you’d generally need to secure a loan. However, there are two main advantages of financial planning for buying a car. One, it reduces expenditure and second, it eliminates the hassle of EMIs. How long you’re willing to wait to buy a car is significant as it determines your investment period. The longer you wait, the more your investment will grow, which could be highly beneficial for you.
How to Plan Your Finances
If you’re thinking of buying a car that costs 7 lakhs today, in five years, its price will be more than 10 lakhs. This means if you want to buy the same car in five years without a loan, you’ll need to arrange more than 10 lakhs. Since the timeline is five years, investing in an equity mutual fund may not be the best option due to possible fluctuations. Instead, you should invest in a place with less fluctuation and a return that can beat inflation, i.e., a 7-8% return.
Advantages of This Approach
The approach we’ve suggested could save you a significant amount of money. When taking a loan, customers have to pay the principal amount along with interest, which is included in the EMI. Instead of paying EMIs to the bank, if you save money through SIP, not only will you save on interest, but you’ll also earn returns on your SIP. In other words, by delaying your decision for a few years, you could benefit twice.
Summary:
★Buying a car without a loan is now possible with careful financial planning.
★Planning your finances for this purpose has two main advantages: reduced expenditure and no EMIs.
★If you’re thinking of buying a car, you should consider investing in a place with less fluctuation and a return that beats inflation.
★This approach could save you a significant amount of money, and you could earn returns on your SIP.
