I bought my first car when i was 25 years old. Of course no idea what’s the thumb rules and all. I dont know if i did did wrong or right. I am 32 now I am glad I bought it that time. 7 years were fun wonderful. I took my parents to many places. I never let them take any auto bus train . convenient all times. My mother passed away this year. If i could have ever waited for right time to buy car those glorious pride in mom’s eyes could have been missed. Just do what your heart says. I am from middle class family. I do know it is depreciating asset. But remember you pay premium for convenience on any items your purchase. I have seen people dont eat out side god don’t go movies. I have seen people who do. Guess what both are gonna die one day. Remember to save for future and at the same time also taste the materialist world. Edit: I bought my second car in 2023 Tata Harrier. Feels like top of the world. Dad is so proud as no one from my family ever bought a SUV.
Best response. I bought my car at 25 too even though I paid 30% of my net salary as EMI. I was able to get my grandfather sit in it and take him for around my native place. I lost him in less than a year's time. All rosy stuff these youtubers talk are very idealistic and even might not best suit them! Follow your heart and little brain will work most of the time.
Even if you always invest in appreciating assets and watch your money grow, it can give you a feeling of satisfaction and peace, but to enjoy your money, it has to be spent on depreciating assets. Always remember, you're not gonna live forever. Some things can be enjoyed only till you're young. 🙂
Very well said. We should understand the value of a thing. A harley Davidson will no value to a 60year old person but will mean the world to a person who have bought it in their late 20's from their own money
Rachana, as always, very crisp explanations. Keep going. I want to add 3 more points on advantages 1. It saves time and can do much more with a car if use effectively 2. Should buy a car at appropriate period of life when your children are with you. No point in waiting till retirement :-) 3. Particularly for ladies staying alone, car gives protection and confidence
My formula is simple. I invested every penny in mutual funds. Created a good basket. Now I have booked 2 BHK. Will buy four wheeler next year ( no priority) and will start exploring India and world in coming years. (without touching my core portfolio)
@@jagandas8322 so many schemes. You can choose nifty index fund, flexi cap fund, if you can wait more patienly then small cap and / or infotech sector fund. Please don't stop investing until you reach your dream corpus
I have 10lakhs in my hand... Instead of buying it in full cash payment mode.. I invested the 10lakh in Mutual fund SWP scheme and bought the car in EMI. Used the 1% SWP withdrawal amount every month to pay the EMI... At the end of 8 year EMI period, my entire capital of 10lakh remains the same and will use the remaining amount to pay of the balance loan amount
Just a thought what if you had bought car with cash and did sip of your emi amount? In your case you got the benefit of lumpsum investment at the year 0 itself but you had to pay loan interest. In the alternative case you had no obligation to pay interest but you were investing in sip over the years. I would love to know the results. Please provide more details or calculate yourself and tell me the result.
Factors which are not considered: 1. Asset(car) price also going up over the roof nowadays. So investing the money now, and buying the car later may not be a money saving decision. 2. It also bring many more opportunities like easier and flexible maneuver within your workspace etc, which can increase time value.
Lol...then don't buy car and on one day when u r in urgent medical condition and need to rush hospital then best of luck booking a cab on oka and uber which shows 10 mins on the way or try asking neighbours and then u know the emotional quotient which these financial analysts bring into consideration
@@apurvpatil192 there are thousands of people who do that everyday but they don't call it depreciation asset...it helps when u need it without realising it many times.
Living in a city centre, I have never ever been in a situation where I felt car would have made my life better. Cheap and well connected public transport plus cab services makes owning a car absolutely obsolete. Except for once a lifetime occurrence like 1st wave of lockdown, not having a car makes life only better.
50-30-20 needs drastic change, 40 basic expenses, 40- savings, 10-wants, 10-Misc Use car as pool share and make as little possible. My entire car loan was interest free because, interest was earned by car pooling. Buy a car even if it's depreciation asset, if your work , personal life needs frequent commute, travel places and enjoy. Cabs are no way cheaper...
One major correction: my annual income is 24 but i pay emi of 36k to gov for great services like Road, Education, Healthcare and awesome air. 👌 i cannot afford anything now.
Very good video Maam . Sometimes for some individuals the passion takes over sense . It’s all about the passion and the memories they make with machine.
Rachana… You forgot to mention 2 most important points 1) First learn to drive the car from a good motor training school. Learn on the same car which you plan to purchase 2) Get the driving license and become legal. Having a driving license and knowing how to drive are two different things in India
In general most car are depreciating asset. But there are definitely few which hold very good value. Club the cab expense and and resale these few cars command one might end up net positive even after owning the car. My only problem with new age excel savvy financial experts is that they miss out many non quantitative benefits.
Buy car when you need it, don’t listen to people suggesting buy/not buy. If your travelling need fulfilled by public transport,shared travel, private cab services then it’s useless to buy/lease car. But many times car becomes need let’s say when you have baby or you often visit to places with low transport options. In that case all the investments related advices are not relevant.
Mam, Similarly we would love to see a video more on "How/When to buy your first Rental Property or things to consider when you are building your first ever home?"
Hehe...Firstly, thanks ma'am for such an insightful video..I really loved it....Now Just something what I observed. Using the CARR i.e. 30% in wants rule means you won't be spending anything big in your wants for that particular month han! (May be for 4 years of EMI, ignoring the income growth for once). You've already reached the limit of WANTS criteria by paying Car EMI...hehe so dear fellows please do consider this also before getting excited! I also got excited for once but then I realized this🤣
it is great time to buy now...retail investors will not have conviction unless Nifty is again above 18,000...then, the risk-reward ratio will not be favourable...retail investors are always late...valuation is reasonable right now...commodities have already steeply corrected...impact will soon be seen on food inflation, consumer price index, producer price index, etc....we should use the dips now to accumulate some quality stocks like Fiem Industries, Tube investments, Lancer containers, GNFC, etc.
december is ideal month because companies want to clear stock of cars because in january they want to start production for that year and increase price. however january is not ideal time because price goes up and generally u might not get good deals so u have to be careful
1. Buying a car should not be thought of investment or luxury spending. 2. Buying a car or buying a stock or saving in bank argument doesn’t make sense. Food you eat becomes shit, so will you stop eating ? If you want it? need it ? go ahead. 3. Be it person earning 5 or 50 lacs, any good deal in used car market should be considered. 4. All your investment has a goal, if your goal was to buy car and you have money. Go ahead. there is nothing right or nothing wrong. There is no perfect flow chart else everyone would follow it and no one would have watched this video.
Hi Rachna, Great video ! 👍 However I suggest you to include the aspect of existing liabilities in terms of loans (personal /educational / home) while making a decision . This could help in guiding youngsters especially those who have just graduated and started their professional journey
7:36 absolute rubbish..today car is a need and not a luxury...I will tell you an incident. It was 1pm midnight when my wife asked me to bring some medicine so I took my car out and searching for medical.stores and all of them were closed and after driving for 3 kms i saw a hospital where there was 24 hr pharmacy available I was buying the medicine and there was huge shout of a couple rushing with thier 4 year old Baby unconscious and they were screaming doctors to attend and the doctors have laid down the baby on the stretcher and did some primary Medicare and they told to go to the multi speciality hospital which is 5 km away and they just took the car and rushed in seconds..all this happened in a span of 3 mins literally and the shock I can see in the parents face. Now imagine if they don't have car and start booking a cab on uber or ola and it shows 15 mins the way , now calculate each minute how precious is this and all thes trade experts talking about car vs rental goes into absolute trash..it's a damn need my dear trade expert
Such a great explanation by you ma'am. Really needed this suggestion and got this video at right time as i was planning to save for buying a car in near future waiting to see more such informative videos.
I will make it more simple, purchase the car of value of 6-7 months of income, if monthly income is 1 lakh go for 6-8 lakh car value, if 2 lakh per month go for 12-16 lakh car, down payment n all decide based on what you are saving.
I think this is not the correct approach. There are two ways to buy anything. 1. It improves your productivity or cuts costs in a way that it more than makes up for whatever you would be doing if you do not buy it; and 2. The cost of the thing is so low that you would not even feel it (like it is okay to buy an egg roll if you want it, you don't have to do accounting for that). In the case of a car, method 1. involves comparing the cost of owning the car and running it compared to whatever you would do otherwise (like Uber) or if it would improve your productivity appropriately (for example, where Uber is not available and you would lose time taking the bus). Method 2. means you are so rich that you cannot even notice the cost of the car (it is like buying an egg roll for you).
Wonderfully explained maam thanku sooooo muchhhhhh💫😊. unlike others u also gave positive aspects , otherwise UA-camrs suggest dnt buy a car .it really demotivates us who are really in need of car
Hi guys there is another aspect as well, which is depreciation of dreams. I am not against savings but dont forget to buy something which you like. consider gifting something for yourself sometimes & enjoy life
Just to add one more point here: How about Car lease policies which companies provide where complete Car EMI will be not taxed at all. Road Tax and insurance will be borne by company itself.
I have a question. If someone like me who cannot drive a car, but planning to buy one in near future assuming all quantitative factors and qualitative factors (that you mentioned), then should I go for buying? or Should I think of buying a 2nd hand car for initial period? or should I just focus on learning the same fully before buying the one? I think this angle , with risk analysis and Pros & Cons of every option, will help more to the people like me.
Bro learn Driving first, that's what you will have to consider first. Being a Beginner, I will suggest you. Just consider if you want to. Buy a new Car itself, it will cost you less maintenance than a second hand car. If you have family of more than 4 members than consider a SUV, else go with Hatchback or Sedan itself as a first car. Also ask the concerned sales person in detail about maintenance of the car beforehand so you don't feel it expensive to maintain. Always ask for a Long Test Drive coz you can feel if it satisfies your requirements. Then buy that car you wish to. All the best and Happy Motoring.
Many of my friends and family members have bought expensive cars than they can afford... Mainly to show others...now they have lost their financial freedom and are struggling...most of them would drive car on very rare occasions. Unless your business depends on it, car is just a liability. A good second hand car worth 2-4 lakh would do the job just fine. Top of that, our road and traffic conditions are so amazing that we can rarely enjoy driving a good car.
Straight philosophy is while you are young buy a car. Enjoy the drive. Rather than getting old and then not having the physical fitness to drive for long distances
Mam you should have mention annual income after taxes as most people will take annual income as CTC which would be way beyond the real number as 20%, 30% as tax would already be deducted.
Given that mostly all car brands offer leasing option, that should be considered as well, also some will have other EMI like housing and personal loan or credit cards... those where not considered for a holistic "financial plan"
Ma'am, Mental Piece is over and and above all the formulas, with current trends of NASDAQ and NIFTY, looking at the no. of layoff's even by companies like Tesla, [the more higher the down payment = the more secure the future one can have] Also isn't it always better to have same amount of investments in SIP with same amount of vehicle loan EMI to eliminate the finance cost?
Vikas bhai ko dekh ke car purchase karne ka Dil Kiya. Ma'am ka video dekh ke Dimag ne plan cancel karne ka decision liya. Thanks to UA-cam for suggesting me this video before I went to the showroom for my advance payment. 😕😕😕 Sorry @Mahindra
The economic hardship, unemployment and loss of jobs caused by covid is enough to push people into financial venture's. Am taking a trip into investing because I've lost so much during pandemic and post pandemic..
@@thomascastillo1661 You are definitely right. Crypto related investments are super profiting, it's where I've earned the most gains from amongst all investments.
A lot of People are hesitant to invest in cryptocurrency due to the current level of unprofessionalism, but this sounds awesome. Thanks for the recommendation..
My thumb rule is don't take any Car loan but financed it from your savings...go for car when u have your own house / flat & your housing Loan should be just 20% of it's realisable value of that house/ flat....always be conservative in purchasing such depreciable assets....however, if your networth more than Rs 5 cr , then go for car...again, without car loan
Buying car early is better because interest you pay is almost equal to inflation nowadays. If you're buying used car it actually is not a depreciation but break even.
I'm 27 n have a nano mine is a need based want I don't like showing off my lil red 016 xta nano provided 20 mileage less maintenance n I intend to keep it while I save for something big thank you Rachana akka
Here is method: 1. Be a super productive and make 2 Cr in 2 to 5 years. 2. Save 1 CR in Bank and Monthly 2L in Index funds, and 50L in All Weather fund 3. From your first 1 Cr you will get monthly 70K save that money or start the Car EMI of half of that amount. 4. Make your money works for you and Enjoy the car.
You gave good decision making factors to consider before buying a car, but trust me people earning less than 6LPA are having cars now. They are ready to pay for Convenience sake and Cars price are going above Sky now. It's better to buy a car if purpose is necessary and pay for the convenience. I am an Entrepreneur, I bought Fortuner now. I have money to pay Hot Cash and buy it immediately but still took loan coz I plan everything properly and my decision don't make me bankrupt and suffer. When you plan properly and good in decision making, these factors are nothing to consider. Just go with the flow and buy the car and create memories with your family.
If you're staying in Bangalore, and you're planning to buy car for daily commute, it's an absolute waste of investment. On the other hand, if you want to go out on weekends, outside the city, you might enjoy probably.
In India like own house, car also also is an emotion and one should not go in such deep analysis what you shown in your video, if you really want to buy and can afford with taking care of your needs and savings then go for it. Everything doesn't need such in-depth analysis always.
Considering a generic emi of a good safe car nowadays, it can be in a range to 25k-35k per month. So for it to be 10% of your income, your income needs to be 2L to 4L per month. For someone to earn that much per month, is not a usual scenario. A very few of indian population earns in that range and that to if they belong to Tier 1 cities. For Tier 2 to tier 3 cities, that comes after some good years of experience. By that time one will become aged or maybe like in late 30's.
Finally someone with sense! Thank you for commenting this sir. With this formula If I earn around 1 lakhs per month, 10% is only 10000 Rs. Even maruti swift EMI is costlier than 10000. The examples provided are not at all in accordance with the formula.
Still few things like car home these are emotional decision which can't have excel logical answer it also depends on individual to individual because I'm full time biker and can't stand car at any cost I just don't like cars
I beg to differ with this argument if my ola uber public transport or 2 wheeler if this is taking my majority of income and own car can safe time and margin is just 5 to 10 % then why not go for it. 🤔 just asking .... because whenever I use uber ola to travel with my family one single trip it is costing me 1500 to 2000 per trip will be taking 4 to 5 trips so... it's clearly expensive any which way
To watch this video in Hindi : ua-cam.com/video/Fu3ATkGlH6s/v-deo.html
I bought my first car when i was 25 years old. Of course no idea what’s the thumb rules and all. I dont know if i did did wrong or right. I am 32 now I am glad I bought it that time. 7 years were fun wonderful. I took my parents to many places. I never let them take any auto bus train . convenient all times. My mother passed away this year. If i could have ever waited for right time to buy car those glorious pride in mom’s eyes could have been missed. Just do what your heart says. I am from middle class family. I do know it is depreciating asset. But remember you pay premium for convenience on any items your purchase. I have seen people dont eat out side god don’t go movies. I have seen people who do. Guess what both are gonna die one day. Remember to save for future and at the same time also taste the materialist world.
Edit: I bought my second car in 2023 Tata Harrier. Feels like top of the world. Dad is so proud as no one from my family ever bought a SUV.
🫵
I have saved this comment so that it will inspire me
Right, man
I agree 👍
Best response. I bought my car at 25 too even though I paid 30% of my net salary as EMI. I was able to get my grandfather sit in it and take him for around my native place. I lost him in less than a year's time. All rosy stuff these youtubers talk are very idealistic and even might not best suit them! Follow your heart and little brain will work most of the time.
Even if you always invest in appreciating assets and watch your money grow, it can give you a feeling of satisfaction and peace, but to enjoy your money, it has to be spent on depreciating assets.
Always remember, you're not gonna live forever. Some things can be enjoyed only till you're young. 🙂
Right. It's all about balance.
Invest some, spent some to have that balance of satisfaction,peace and enjoyment!
Well said
Very well said. We should understand the value of a thing. A harley Davidson will no value to a 60year old person but will mean the world to a person who have bought it in their late 20's from their own money
Correct bro.. many people ended their life in mid due to corona .. every time .. every penny is imp think, spent and enjoy
Nowadays there is a trend going on in UA-cam shorts
Everyone is a finance influencer with the same dialogue
Rachana, as always, very crisp explanations. Keep going.
I want to add 3 more points on advantages
1. It saves time and can do much more with a car if use effectively
2. Should buy a car at appropriate period of life when your children are with you. No point in waiting till retirement :-)
3. Particularly for ladies staying alone, car gives protection and confidence
Appreciated.. Thank you for your feedback.
My formula is simple. I invested every penny in mutual funds. Created a good basket. Now I have booked 2 BHK. Will buy four wheeler next year ( no priority) and will start exploring India and world in coming years. (without touching my core portfolio)
Which mutual fund ?
Which mutual funds
@@jagandas8322 so many schemes. You can choose nifty index fund, flexi cap fund, if you can wait more patienly then small cap and / or infotech sector fund. Please don't stop investing until you reach your dream corpus
@@rahulkulkarni7467 how is etfs compared to mutualfunds
Masttt plan h... bhia itna kya calculate kr raha life ko
I have 10lakhs in my hand... Instead of buying it in full cash payment mode.. I invested the 10lakh in Mutual fund SWP scheme and bought the car in EMI. Used the 1% SWP withdrawal amount every month to pay the EMI... At the end of 8 year EMI period, my entire capital of 10lakh remains the same and will use the remaining amount to pay of the balance loan amount
Partially wise but you are disturbing the compounding effect
He's getting a car with that compounding @@RishiSharma-ti4bt
Meanwhile inflation is laughing at the corner😂
Just a thought what if you had bought car with cash and did sip of your emi amount?
In your case you got the benefit of lumpsum investment at the year 0 itself but you had to pay loan interest.
In the alternative case you had no obligation to pay interest but you were investing in sip over the years.
I would love to know the results.
Please provide more details or calculate yourself and tell me the result.
Factors which are not considered:
1. Asset(car) price also going up over the roof nowadays. So investing the money now, and buying the car later may not be a money saving decision.
2. It also bring many more opportunities like easier and flexible maneuver within your workspace etc, which can increase time value.
True after BS6 emission norms, the rate at which car prices are going up is more than the returns on FDs.
Very true
Best loan is no loan for a depreciating asset.
Lol...then don't buy car and on one day when u r in urgent medical condition and need to rush hospital then best of luck booking a cab on oka and uber which shows 10 mins on the way or try asking neighbours and then u know the emotional quotient which these financial analysts bring into consideration
@@livestyle5527 I bought car in cash. Speak for yourself.
@@apurvpatil192 there are thousands of people who do that everyday but they don't call it depreciation asset...it helps when u need it without realising it many times.
@@livestyle5527 It is a depreciating asset. Why did my statement bother you?
It was not targetted towards anyone.
Eh second hand prices of cars are seriously high now. A car 3 years old still goes at almost 70% of the price
Living in a city centre, I have never ever been in a situation where I felt car would have made my life better. Cheap and well connected public transport plus cab services makes owning a car absolutely obsolete. Except for once a lifetime occurrence like 1st wave of lockdown, not having a car makes life only better.
50-30-20 needs drastic change, 40 basic expenses, 40- savings, 10-wants, 10-Misc
Use car as pool share and make as little possible. My entire car loan was interest free because, interest was earned by car pooling.
Buy a car even if it's depreciation asset, if your work , personal life needs frequent commute, travel places and enjoy.
Cabs are no way cheaper...
Could u explain further
Have u shared with friends or family
How u pool shared explain
One major correction: my annual income is 24 but i pay emi of 36k to gov for great services like Road, Education, Healthcare and awesome air. 👌 i cannot afford anything now.
LoL .. truth
Don't worry, this formula is stupid.
@@sar3388 it is sensible.
Very good video Maam . Sometimes for some individuals the passion takes over sense . It’s all about the passion and the memories they make with machine.
Brilliant timing. I was trying to plan to buy one and I've found your video to be a lot enlightening.
Glad I could help.
Rachana… You forgot to mention 2 most important points
1) First learn to drive the car from a good motor training school. Learn on the same car which you plan to purchase
2) Get the driving license and become legal. Having a driving license and knowing how to drive are two different things in India
😂😂😂
Epic!
🤣🤣🔥
Spammers are replying on literally every comment in this comments section... Hope you will take an action before someone falls in to their trap. 😐
This was exhaustive and crystal clear. Thank you for making it so easy to follow. Do make a video on when to buy a house on similar lines.
Thank you for your suggestion will try to bring it up soon.
Starting🔥🔥
Hats off
@investaajforkal anant sir 😀
Thank you 😊
bhaiya aap yha
That is how she bought new car by promoting sponsored videos by trapping new retail investors. She's here to make herself rich not others.
In general most car are depreciating asset. But there are definitely few which hold very good value. Club the cab expense and and resale these few cars command one might end up net positive even after owning the car. My only problem with new age excel savvy financial experts is that they miss out many non quantitative benefits.
Buy car when you need it, don’t listen to people suggesting buy/not buy. If your travelling need fulfilled by public transport,shared travel, private cab services then it’s useless to buy/lease car. But many times car becomes need let’s say when you have baby or you often visit to places with low transport options. In that case all the investments related advices are not relevant.
11 months ago Watching this video to Meeting you in person at seminar.. It was great pleasure to attend your seminar.. Truly Inspirational!! 👍
गुरुपौर्णिमेच्या हार्दिक शुभेच्छा रचना मॅडम... तुमच्या मुळे मार्केट मधला प्रवास खूप सोप्पा झालाय माझ्यासारख्या खूप जणांचा...
🎉💕
👆👆👆 Thanks For Watching. Reach out to our Personalized Financial Coaching...
धन्यवाद 😊
Mam,
Similarly we would love to see a video more on "How/When to buy your first Rental Property or things to consider when you are building your first ever home?"
Thank you for your suggestion will try to bring it up soon.
Or also how to plan a foreign trip!
@@CARachanaRanadejai bhim
Hehe...Firstly, thanks ma'am for such an insightful video..I really loved it....Now Just something what I observed. Using the CARR i.e. 30% in wants rule means you won't be spending anything big in your wants for that particular month han! (May be for 4 years of EMI, ignoring the income growth for once). You've already reached the limit of WANTS criteria by paying Car EMI...hehe so dear fellows please do consider this also before getting excited! I also got excited for once but then I realized this🤣
it is great time to buy now...retail investors will not have conviction unless Nifty is again above 18,000...then, the risk-reward ratio will not be favourable...retail investors are always late...valuation is reasonable right now...commodities have already steeply corrected...impact will soon be seen on food inflation, consumer price index, producer price index, etc....we should use the dips now to accumulate some quality stocks like Fiem Industries, Tube investments, Lancer containers, GNFC, etc.
december is ideal month because companies want to clear stock of cars because in january they want to start production for that year and increase price. however january is not ideal time because price goes up and generally u might not get good deals so u have to be careful
1. Buying a car should not be thought of investment or luxury spending.
2. Buying a car or buying a stock or saving in bank argument doesn’t make sense. Food you eat becomes shit, so will you stop eating ? If you want it? need it ? go ahead.
3. Be it person earning 5 or 50 lacs, any good deal in used car market should be considered.
4. All your investment has a goal, if your goal was to buy car and you have money. Go ahead.
there is nothing right or nothing wrong. There is no perfect flow chart else everyone would follow it and no one would have watched this video.
Hi Rachna,
Great video ! 👍 However I suggest you to include the aspect of existing liabilities in terms of loans (personal /educational / home) while making a decision . This could help in guiding youngsters especially those who have just graduated and started their professional journey
Thank you for your suggestion.
😂
7:36 absolute rubbish..today car is a need and not a luxury...I will tell you an incident. It was 1pm midnight when my wife asked me to bring some medicine so I took my car out and searching for medical.stores and all of them were closed and after driving for 3 kms i saw a hospital where there was 24 hr pharmacy available I was buying the medicine and there was huge shout of a couple rushing with thier 4 year old Baby unconscious and they were screaming doctors to attend and the doctors have laid down the baby on the stretcher and did some primary Medicare and they told to go to the multi speciality hospital which is 5 km away and they just took the car and rushed in seconds..all this happened in a span of 3 mins literally and the shock I can see in the parents face. Now imagine if they don't have car and start booking a cab on uber or ola and it shows 15 mins the way , now calculate each minute how precious is this and all thes trade experts talking about car vs rental goes into absolute trash..it's a damn need my dear trade expert
Rachana ma'am, you are awesome. Helped made my decision of buying a CAR more conscious in a good way. Thank you!
My monthly income 9000... My dream car is on my phone gallery.. after watching Mam video I understood that I can only affort Cycle.. # go green,,,😃
Excellent explained 👍
Thank you 🙂
Q: When Should You Buy Your First Car?
ANS: AS SOON AS YOU CAN !
Such a great explanation by you ma'am. Really needed this suggestion and got this video at right time as i was planning to save for buying a car in near future waiting to see more such informative videos.
Khup bhari... Exactly same way Home Buying varti ek video banava..
I will make it more simple, purchase the car of value of 6-7 months of income, if monthly income is 1 lakh go for 6-8 lakh car value, if 2 lakh per month go for 12-16 lakh car, down payment n all decide based on what you are saving.
I think this is not the correct approach. There are two ways to buy anything. 1. It improves your productivity or cuts costs in a way that it more than makes up for whatever you would be doing if you do not buy it; and 2. The cost of the thing is so low that you would not even feel it (like it is okay to buy an egg roll if you want it, you don't have to do accounting for that). In the case of a car, method 1. involves comparing the cost of owning the car and running it compared to whatever you would do otherwise (like Uber) or if it would improve your productivity appropriately (for example, where Uber is not available and you would lose time taking the bus). Method 2. means you are so rich that you cannot even notice the cost of the car (it is like buying an egg roll for you).
Wonderfully explained maam thanku sooooo muchhhhhh💫😊. unlike others u also gave positive aspects , otherwise UA-camrs suggest dnt buy a car .it really demotivates us who are really in need of car
Thank you for your feedback.
गुरुपौर्णिमेच्या हार्दिक शुभेच्छा 🙏
ᖴeedback appreciated.⬆️
Wanting more info and insight?
WatsApp the number above,
Endeavour to reach out.
Hi guys there is another aspect as well, which is depreciation of dreams. I am not against savings but dont forget to buy something which you like. consider gifting something for yourself sometimes & enjoy life
well explained video
keep up the good work Rachna
Thank you 😊
Dude you are too good. Ppl don't even think like that remotely about things..
Ahh..comment section is soo interesting I had to rewind this video multiple times
At right moment of my life you have uploaded this video...thank you so much Ma'am. Love your presentation and style of giving knowledge.
👆👆 Thanks For Watching. Reach out to our Personalized Financial Coaching.
Glad to know that. Thank you :)
Thanks rachna its just beautifully explained
Great Madam its, very useful for everyone's.... Thanksgiving this knowledge.
A very well thought video on car puchase decision. Thanks for creating this. Clarified a lot of doubts.
Glad you liked it.
Really great explanation ma`am👌👌
Just to add one more point here:
How about Car lease policies which companies provide where complete Car EMI will be not taxed at all.
Road Tax and insurance will be borne by company itself.
1:17 Hyundai i20 old wala model
I have a question. If someone like me who cannot drive a car, but planning to buy one in near future assuming all quantitative factors and qualitative factors (that you mentioned), then should I go for buying? or Should I think of buying a 2nd hand car for initial period? or should I just focus on learning the same fully before buying the one? I think this angle , with risk analysis and Pros & Cons of every option, will help more to the people like me.
Bro learn Driving first, that's what you will have to consider first. Being a Beginner, I will suggest you. Just consider if you want to. Buy a new Car itself, it will cost you less maintenance than a second hand car. If you have family of more than 4 members than consider a SUV, else go with Hatchback or Sedan itself as a first car. Also ask the concerned sales person in detail about maintenance of the car beforehand so you don't feel it expensive to maintain. Always ask for a Long Test Drive coz you can feel if it satisfies your requirements. Then buy that car you wish to. All the best and Happy Motoring.
Need a video like this for buying house or land
Shall try.
My advice. Don’t buy car on a loan. Grind it out, wait if possible . It will help you later. Avoid loans at all costs unless its an emergency.
It depends on various factors, if your age is 40 and if you can afford on loan, why not then.
What is one going to achieve after saving most of the earnings and passing it to next generation one fine day....
Thank u very much ❤ I have postponed my plan now 😅
Thanks a lot mam you are given excellent financial plan for car.
Thank you so much for this video Rachana!
Many of my friends and family members have bought expensive cars than they can afford... Mainly to show others...now they have lost their financial freedom and are struggling...most of them would drive car on very rare occasions.
Unless your business depends on it, car is just a liability. A good second hand car worth 2-4 lakh would do the job just fine.
Top of that, our road and traffic conditions are so amazing that we can rarely enjoy driving a good car.
Straight philosophy is while you are young buy a car. Enjoy the drive. Rather than getting old and then not having the physical fitness to drive for long distances
Mam you should have mention annual income after taxes as most people will take annual income as CTC which would be way beyond the real number as 20%, 30% as tax would already be deducted.
Awesome Maam. Subscribed!!
Rachana madam you give practical simple explanation related to money and finances.
God bless you
Great Job Mam 👍👍🙏
Given that mostly all car brands offer leasing option, that should be considered as well, also some will have other EMI like housing and personal loan or credit cards... those where not considered for a holistic "financial plan"
Ma'am,
Mental Piece is over and and above all the formulas, with current trends of NASDAQ and NIFTY, looking at the no. of layoff's even by companies like Tesla, [the more higher the down payment = the more secure the future one can have]
Also isn't it always better to have same amount of investments in SIP with same amount of vehicle loan EMI to eliminate the finance cost?
This video came at right time when i was wondering to buy a car or not thank you RR madam
Hope it finds you helpful in your decision-making.
Vikas bhai ko dekh ke car purchase karne ka Dil Kiya. Ma'am ka video dekh ke Dimag ne plan cancel karne ka decision liya. Thanks to UA-cam for suggesting me this video before I went to the showroom for my advance payment. 😕😕😕 Sorry @Mahindra
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The economic hardship, unemployment and loss of jobs caused by covid is enough to push people into financial venture's. Am taking a trip into investing because I've lost so much during pandemic and post pandemic..
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@@thomascastillo1661 You are definitely right. Crypto related investments are super profiting, it's where I've earned the most gains from amongst all investments.
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Thanks a lot madam
For always right direction given to students 🙏
My thumb rule is don't take any Car loan but financed it from your savings...go for car when u have your own house / flat & your housing Loan should be just 20% of it's realisable value of that house/ flat....always be conservative in purchasing such depreciable assets....however, if your networth more than Rs 5 cr , then go for car...again, without car loan
Hi Rachana ma'am, Great video. Please make similar kind of video for first time house buying as well. That would be really helpful to us
Brother need 10k urgent bro please help
I will repay u
Thank you for your suggestion will try to bring it up soon.
Very good explanation madam
Thanks for the guidance
Simply mind opening vdo. Fantastic.
I bought 11.5L car last year while getting 3LPA :)
Super and educational explanation. Thank you
Finally a sensible video
Very good advice and new perspective
Glad you liked it.
Good advice mam🤗 and strong analysis. This also helps how to plan other big purchases. Thanks
Thanks for watching 👆👆
For mentorship and
Information
Message me direct✅✅
Glad it was helpful! Thank You 😊
Hi rachna,
Great knowledge video
Aakhe khool di
Car is a depreciating asset. But a sasta 2 electric wheeler should do. In today's age and time, we can make do with Ola, Uber, Droom, etc.
Buying car early is better because interest you pay is almost equal to inflation nowadays. If you're buying used car it actually is not a depreciation but break even.
Very impressive .. thanks for this video
Thank You 😊
I'm 27 n have a nano mine is a need based want I don't like showing off my lil red 016 xta nano provided 20 mileage less maintenance n I intend to keep it while I save for something big thank you Rachana akka
Buy a car , use when u need and other time put that on rent, make money from depreciating asset 🙏✌️
Beautifully said 👏👏
I don't want to watch the video but I know the answer
"When you want"
Here is method:
1. Be a super productive and make 2 Cr in 2 to 5 years.
2. Save 1 CR in Bank and Monthly 2L in Index funds, and 50L in All Weather fund
3. From your first 1 Cr you will get monthly 70K save that money or start the Car EMI of half of that amount.
4. Make your money works for you and Enjoy the car.
Kitna kama liya bhai😂 2 cr toh aise bolre ho..jaise ped se tod laaye insaan.
After watching ur video, booked a new car with 2Lac down payment 6L loan.
You gave good decision making factors to consider before buying a car, but trust me people earning less than 6LPA are having cars now. They are ready to pay for Convenience sake and Cars price are going above Sky now. It's better to buy a car if purpose is necessary and pay for the convenience. I am an Entrepreneur, I bought Fortuner now. I have money to pay Hot Cash and buy it immediately but still took loan coz I plan everything properly and my decision don't make me bankrupt and suffer. When you plan properly and good in decision making, these factors are nothing to consider. Just go with the flow and buy the car and create memories with your family.
If you're staying in Bangalore, and you're planning to buy car for daily commute, it's an absolute waste of investment. On the other hand, if you want to go out on weekends, outside the city, you might enjoy probably.
Great share of wisdom, had to subscribe for a good advocacy of financial saving and the way of utilising money.
In India like own house, car also also is an emotion and one should not go in such deep analysis what you shown in your video, if you really want to buy and can afford with taking care of your needs and savings then go for it. Everything doesn't need such in-depth analysis always.
video is great. gives great ideas about traps and freedom.
good information sister .... Thank you
Considering a generic emi of a good safe car nowadays, it can be in a range to 25k-35k per month. So for it to be 10% of your income, your income needs to be 2L to 4L per month. For someone to earn that much per month, is not a usual scenario. A very few of indian population earns in that range and that to if they belong to Tier 1 cities. For Tier 2 to tier 3 cities, that comes after some good years of experience. By that time one will become aged or maybe like in late 30's.
Finally someone with sense! Thank you for commenting this sir. With this formula If I earn around 1 lakhs per month, 10% is only 10000 Rs. Even maruti swift EMI is costlier than 10000. The examples provided are not at all in accordance with the formula.
You are great...all the best
Thanks 😊
Great video on this topic with a very impressive calculations and prospective given for quick decision
Glad you liked it!
Still few things like car home these are emotional decision which can't have excel logical answer it also depends on individual to individual because I'm full time biker and can't stand car at any cost I just don't like cars
After your video, I am getting recommendations for second hand cars 😅
I beg to differ with this argument if my ola uber public transport or 2 wheeler if this is taking my majority of income and own car can safe time and margin is just 5 to 10 % then why not go for it. 🤔 just asking .... because whenever I use uber ola to travel with my family one single trip it is costing me 1500 to 2000 per trip will be taking 4 to 5 trips so... it's clearly expensive any which way