Taking a car loan? The burden will not fall on the pocket, remember 20/4/10 Golden Rule

Taking a car loan? The burden will not fall on the pocket, remember 20/4/10 Golden Rule

by with No Comment Car Review

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Car Loan Tips: If you are planning to take a car loan, first take out the information of 20/4/10 rules. This easy rule can reduce the burden on your pocket.

Taking a car loan? The burden will not fall on the pocket, remember 20/4/10 Golden Rule
Car loan tips: It has become common to take a car loan between the price of growing cars and the increasing desires of the people. But often the burden of EMI increases so much that the monthly budget deteriorates. If you are thinking of buying a car and want to take a loan for it, an easy formula can reduce the burden on your pocket.

Financial experts recommend adopting 20/4/10 rules while taking a car loan. This rule decides how much down payment you should make, how much of the loan period should be and how much part of your salary should be spent on EMI.

What is 20/4/10 Rules?

20% down payment: Pay the price of the car at least 20 percent in advance. This will reduce the loan amount and the burden of interest will be lighter. It can be a good option to save in advance or use a trade-in value of an old car.

4 -year loan tenure: Try to finish the car loan in a maximum of 4 years (48 months). Long -term loan EMI definitely reduces, but interest has to be paid more and the debt may be saved despite the value of the car.

10% income in EMI: Your monthly EMI should not exceed 10 percent of your net salary. This will not affect the rest of the expenses and savings. Suppose your salary is ₹ 60,000 and you are buying a car worth Rs 10 lakh. According to the rule, you have to make a down payment of Rs 2 lakh. EMI is to be repaid in 4 years and it should not exceed Rs 6,000 (10 percent of salary). If EMI comes out more than this, it would be better if you take a small car or increase the down payment.

What is the benefit of 20/4/10 rule?
Adopting the 20/4/10 rule not only to pay less interest, but the car loan maintains balance instead of spoiling your financial situation, that is, the dream of the car will also be fulfilled and EMI will not be stressed.

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vinoy jha

After starting a career with print media, he has been working as a senior copy editor in News18Hindi for the last 8 years. Business news team is part of the team for almost 4 years. He has experience of about one and a half decades in the media. Business …Read more

After starting a career with print media, he has been working as a senior copy editor in News18Hindi for the last 8 years. Business news team is part of the team for almost 4 years. He has experience of about one and a half decades in the media. Business … Read more

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First Published:

August 31, 2025, 05:54 IST

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Taking a car loan? The burden will not fall on the pocket, remember 20/4/10 Golden Rule

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What should be the first car of your life, should you buy it considering your budget or need, how important is the safety rating?

What should be the first car of your life, should you buy it considering your budget or need, how important is the safety rating?

by with No Comment Car Review

highlights

Decide the budget before buying a car.Mileage and maintenance are also factors.Also take care of safety features.

Life's First Car: Buying the first car is a memorable experience for everyone. But this decision should not be based only on budget and design. While buying your first car, it is important to keep many aspects in mind, so that it proves to be a right and profitable investment for you. Let us know what things should be kept in mind while choosing the first car.

decide the budget first
First of all, you should assess your budget properly. Decide whether you want to buy a new car or whether it would be better for you to get a second-hand car. A new car may cost a little more, but it provides better service in the long run. At the same time, a second-hand car is available at a lower price and can be a good option for beginners in driving. If you are buying a new car, also look into financing options to make your purchase easier.

How much will the car run?
Next, it's important to think about how you'll be using your car. If you mostly drive a car in the city, then hatchback cars like Maruti Suzuki Swift, Hyundai Grand i10 or Tata Tiago can be a good option. At the same time, if you travel long distances on the highway, then sedan or SUV models like Honda City or Tata Nexon would be a better option. If you have a large family, MPVs or 7-seater cars may be suitable for you.

Mileage and maintenance are also factors
Mileage and maintenance is also an important aspect for your first car. Petrol cars are suitable for less driving, whereas diesel or CNG models can prove to be good for more driving. Additionally, electric cars like Tata Nexon EV or MG Comet EV can also be a future-oriented option, as they are environment-friendly and can prove to be economical in the long run.

Take care of safety features also
It is very important to have safety features in your first car. It must include features like dual airbags, anti-lock braking system (ABS), rear parking sensors and electronic stability control (ESC). These features will not only ensure your safety but will also increase confidence while driving.
Apart from this, it is also important to keep in mind the resale value of the car. Think about what a good price you can get for your first car if you sell it in the future. Cars from companies like Maruti Suzuki and Hyundai generally give better resale value.

Performance and comfort are also important
Don't forget to take a test drive before buying a car. This will help you understand the performance, comfort and driving experience of the car. During the test drive, feel whether the steering, brakes and seating comfort of the car are suitable for your needs or not.

Ultimately, your first car should be one that fits your budget, needs and lifestyle. Do thorough research before buying, compare various options and take a wise decision based on your driving patterns. Choosing the right car will not only make your driving easier but will also give you a satisfying experience in the long run.

Tags: auto news

FIRST PUBLISHED: November 26, 2024, 19:39 IST

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Buy your favorite car in Diwali but don't be cheated, know which variant is worth the money, keep these 5 things in mind

Buy your favorite car in Diwali but don't be cheated, know which variant is worth the money, keep these 5 things in mind

by with No Comment Car Review

New Delhi. Buying a new car is considered auspicious during the festive season, and if you are planning to buy a car on this occasion, it is important to keep some important things in mind. Here we are telling you 5 important tips to choose a 'value for money' car, which will help you in buying the right and affordable car.

1. First decide the budget
According to Pankaj Mathpal, personal finance expert and CEO of Optima Money Managers, the cost of a car should not exceed 50% of your annual income. For example, if your annual income is Rs 10 lakh, you should consider a car up to Rs 5 lakh. This ensures that you take a right decision as per your financial situation.

2. Choose models with only essential features
Many times car companies add such features in expensive variants, which you do not need. This increases the price of the car, but it does not prove to be 'value for money'. Therefore, it is better to choose the features as per your requirement.

3. Avoid dealership accessories
When buying a car, the accessories available from the dealership can be expensive. By purchasing them from outside, you can get a cheaper option and money will also be saved. Therefore, consider buying accessories from the market instead of the dealership.

4. Check After Sales Service
Before buying a car, it is important to pay attention to the after sales service of that brand. Car service is required from time to time and if the service of the company or dealership is not good then you may have to spend more on maintenance. Therefore, investigate this aspect thoroughly.

5. Pay attention to insurance
According to the Motor Vehicles Act, 1988, it is necessary to have car insurance. Driving a car without insurance is not only illegal, but there is also a risk of fine or the car being confiscated. Additionally, considering the increasing number of accidents on the roads, a proper insurance policy is also essential for your safety. Many companies offer attractive policies, so choose the best policy by comparing all the options.

Keeping these 5 important aspects in mind, you can choose the right 'value for money' car as per your budget.

Tags: auto news

FIRST PUBLISHED: October 19, 2024, 19:30 IST

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