Got a mail stating that my Car Insurance is expiring soon. Made me once again realize how fast a year flies. Also reminded me of the words of a Gentleman who has been a guide to our family since years.
Once we both had purchased our cars around the same period, if I remember correctly this was around 12 years back. We were both discussing our respective cars when his words of wisdom started flowing in.
According to him, the best way to purchase a car is on installments, for according to him, where else will you get a loan at such a low rate of interest and also benefit in your taxes. However he had a word of caution over there. While getting the loan is easy, one should also have other factors in mind. According to him, in two to three years, you need to change your car battery, then depending on your usage change the tyres, annual expense of maintaining and servicing the car, normal expenses over wear and tear of the car, annual premium of Insurance, the worst case scenario of major accidental expense on the car, and last but not the least….the fuel expenses.
He said one should average these all costs over five years of usage of the car and add the amount to the EMI to understand if one is making the right choice while going in for the loan or no. The car should not become a white elephant for you.
Well buying a car is the easiest thing ever today….but do calculate the actual Cost of Owning the Car……
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