Are you planning to buy a new car and for this you need a loan? Here we are telling you about the 20/4/10 rules, which will be very useful for you while buying a car.
The 20/4/10 rule tells how correct your car purchase is or what preparations you should make before buying a car.
While buying a car, you should make a down payment of at least 20 percent or more of the on-road price of the vehicle.
You should repay the car loan within 4 years. According to the 20/4/10 rules, the loan repayment period should not exceed 4 years.
Your total transportation cost including car EMI should be less than 10% of your monthly salary.
While buying a car, if you choose the base model instead of the upgraded model, then the EMI burden on you will be less.
By ntexpress
