If you are living in a large city like Delhi or Mumbai, there is no doubt that cost of living will give you sleepless nights at times. For those who have just been earning for last few years, spending a lot of money on rent, commute, daily essentials in itself can be a big drain on your finances.
If you then decide to purchase a car, then it means that you will have to bear an additional burden on monthly EMIs.
A new small car can easily cost your Rs 4-5 lacs. If you consider a loan for this, your EMI will come to about Rs 9000 to 11,000. This is no small amount if you are earning less than Rs 50,000 a month.
But you can ease the burden of EMI by opting for used cars. You can get a similar model car for Rs 2-3 lacs. This means that if you opt for a used car loan, your EMI will come to around Rs 5000-Rs 7000. This is not that burdening as the EMIs for newer cars.
You might think that does it make sense to purchase a used car? As it might have maintenance issues and you might have to spend more on its upkeep. Point to understand here is that these days, cars are very robust and reliable. So the maintenance costs are low even after several years of usage. So you don’t need to worry much on that front. Ofcourse you need to be careful and finalize the car after doing your due diligence. But if you really don’t want to spend a lot of money on cars, then taking the used car route is the best option for you.