How much ctc should one have in order to afford Honda City without breaking ones savings?

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See man -be simple rule for buying cars.

Cost of car = 10 % of savings

So if you wanna buy a 10 lac car, you should have 1 cr in the bank.

funny

Do really thing if someone is earing 1cr, she/he will use 10lac car...then why are you earing..only for putting it in equity and bonds, and then handover that amount to your kids...
Simple rule is...maintain a safety stock for 6 months...then check you monthly expenses..takeout decent amount for investment..20-25% monthly...keep 2-3 months expenses as free cash flow...and with rest of the money enjoy your life and be happy. Eventually for what you are earning...

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At 25 fix, you can easily afford a Honda City without compromising on other things. 1.7 would be fix salary, Pay 40 thousand emi for 5 years

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Thats a good answer 👍🏻

These type of questions break the internet!

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Pay 40-50% down payment and emi should not be more then 15% of your income

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Nowadays finance influencers have come up with a 20| 4 | 10 rule. You should have 20% of the cost of a car in your savings as down payment, 4 year tenure of loan repayment and emi must be no more than 10% of your monthly income.

Ex- Honda City v MT petrol at 11.46 lacs. Down payment 20% = 2.3 lacs, with tenure of 4 years you'll have to pay 27.59k as emi. With 10% rule monthly income ~2.76 lacs pm at least.

Now this is an insane figure for buying a car but is only a thumb rule.

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depends on how much down payment you have. Plus what other loans you have. Total EMIs should not be more than 30-40 % of your disposable income. If disposable income is less than 1LPM, then limit EMIs to 20-25 %.

I believe that the cost of owning a car is much more than its price. Many people ignore the maintenance cost of cars, insurance, pollution, repairs, servicing, parking, oil change etc. These things cost quite a hefty amount.

Holistically thinking, we should have double the car amount as the cost of owning a car. Half of that amount would be upfront and the rest would be used up throughout the life of the car(assuming 10yr) life.

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