Car Purchase Planner

Factor in rising auto prices and find out the exact monthly savings needed to hit your ideal downpayment target.

Cost of Car TODAY (₹)

Years until Purchase3 Years

Cars are usually a short-to-mid term goal.

Auto Inflation (%)5% Rate

Car prices generally rise 4-6% annually.

Downpayment Goal (%)25%

Current Saved Amount (₹)

Expected Portfolio Return (%)8%

Keep this safe (6-8%) if buying within 3 years.

Cost After 3 Years

₹11,57,625

Target Downpayment:₹2,89,406

Target Car Loan:₹8,68,219

Required Monthly Saving

₹5,549

This monthly sum will build the ₹2,26,421 needed to cover the downpayment gap.

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.

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