STOCK MARKET BSE NSE

Buying a car to limit exposure to Covid? Make sure it does not hurt your wallet

'People usually like to buy high-end models, but remember that your car should bring happiness and relief, not additional financial burdens,' said a financial consultant.

Published: 19th October 2020 10:33 AM  |   Last Updated: 19th October 2020 10:33 AM   |  A+A-

Cars, passenxger vehicles, car, automobile, vehicles

For representational purposes. (File Photo | PTI)

By Express News Service

CHENNAI: With the festive season finally here, many who can afford to are planning to buy cars since the public transportation system has begun to be seen as unsafe due to the pandemic. However, while safe transport is an important need, so is keeping financial problems at bay. 

Considering that a car is a big ticket purchase for most people, there are many things one should chalk out clearly before committing to buy one. First and foremost is deciding how much to spend on the vehicle. Your budget needs to factor in the tenure of the debt (if you are taking a car loan), the interest rate you pay, the cost of insurance, etc.

Do your homework and research and also decide on which model suits your needs and budget best.
Another major factor is whether you want to own a used car or a new one. Loans are available for both, but one needs to decide what works best. You must ensure that you do not add to your financial stress, and used cars are cheaper.

“People usually like to buy high-end models, but remember that your car should bring happiness and relief, not additional financial burdens,” said S Jayakumar, Chennai-based financial consultant.

If you take a car loan, think long and hard on the right EMI burden. Factors such as interest rate and tenure should be considered deeply. Dealers may want to lower your monthly payment to make the car seem affordable, but they will just extend the tenure, and hence interest costs. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp