Car Purchase Planner
Factor in rising auto prices and find out the exact monthly savings needed to hit your ideal downpayment target.
Cars are usually a short-to-mid term goal.
Car prices generally rise 4-6% annually.
Keep this safe (6-8%) if buying within 3 years.
Cost After 3 Years
₹11,57,625
Required Monthly Saving
₹5,549
Downpayment Generation Breakdown
How your target downpayment of ₹2,89,406 will be achieved
Frequently Asked Questions
Why should I formulate a Sip for a Car Downpayment?
A car is a depreciating asset. Instead of taking a 100% car loan and paying heavy interest, building a 20-30% downpayment via an RD or SIP helps reduce your EMI burden significantly.
What is a good 'Expected Return' for this goal?
Since buying a car is usually a short-term goal (1-4 years), you should avoid high-risk equity mutual funds. Stick to Recurring Deposits (RDs), Arbitrage Funds, or Liquid Mutual Funds. Therefore, an expected return of 6.5% to 8% is realistic and safe.
What about the 20/4/10 Rule for cars?
A popular financial rule of thumb suggests: Put down at least 20% as a downpayment, finance the car for no more than 4 years, and ensure your monthly car expenses (EMI + insurance + fuel) do not exceed 10% of your gross monthly income.