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Buy a Car

A car is not just a mode of transportation; it's a symbol of freedom, convenience, and personal style. The journey to buying a car, whether it's a new one or a second-hand gem, requires careful consideration and planning.

Recipe outlines a car purchase timeline based on age, providing you with insights into making the right car choice at the right time.

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How to plan for your Dream Car

Car purchase involves a blend of practicality, preference, and budget. It's essential to find the best car that suits your needs, preferences, and lifestyle.

20s - 30s
01

Car Purchase in Early Career

During this phase, the focus is often on practicality and affordability. Car purchase may involve opting for compact and fuel-efficient models that meet the needs of a young professional.

buy new car
car purchase
30s - 40s
02

Car Purchase in Mid-Career

With increased responsibilities, car purchase may shift to accommodate family needs. This phase may involve considering spacious and safe models that cater to both family and professional requirements.

In 50s
03

Car Purchase in Pre-Retirement

Approaching retirement, individuals may prioritise comfort and reliability in their car purchase. Consideration is given to features that enhance comfort during long drives and accommodate lifestyle changes.

buy a car
buy new car
60s & BEYOND
04

Car Purchase in Retirement

In retirement, car purchase may involve downsizing to a more compact and manageable vehicle. Fuel efficiency, ease of use, and safety features become paramount.

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FAQ

Frequently Asked
Questions.

Get answers to common investors' questions here or ask us on the Finology Support Portal.

When to buy a car financially?

Financially the best time to buy a new car is when you have:

  • A solid budget
  • A stable income
  • Savings for a down payment


Make sure to consider monthly instalments, maintenance and insurance, too, especially if you want to buy a luxury car!

What is the best formula for buying a car?

The 20/4/10 rule is the best formula to buy a car. It states that you should have at least 20% of the car's price saved for a down payment, choose a loan term of 4 years or less, and keep your monthly EMI's under 10% of your income. This helps ensure you stay within your car budget without financial strain.

How to calculate 20 4 10 rule for buying car?

To calculate the 20-4-10 rule for buying a car, follow these steps:

  • 20% Down Payment: Save up 20% of the car's cost for a down payment.
  • 4-Year Financing: Choose a loan term of no more than 4 years.
  • 10% of Income: Keep your monthly car payment under 10% of your monthly income.


This way, you can buy a luxury car and still keep your finances balanced.

Can I buy a car with 40k salary?

Absolutely! You can buy a car with a ?40K salary. Focus on creating a budget and saving money to buy a car.

With smart and proactive planning, you can even save enough to buy a luxury car! However, ensure to follow the 20 4 10 rule and not overspend on your car.

How to buy a car with low income?

If you want to buy a car with a low income, the first step is to set a realistic goal and start saving. Track your expenses, save every month, and consider good long-term investement options like mutual funds and stocks. It is also important to choose investments on which you can rely on for your goals, which requires them to be relatively more stable than the market. We have used this attribute to select stocks for our flagship stock basket "Finology 30".

If you are planning to buy car on a loan, you can check for financing options with low interest rates or consult a financial advisor to help you out. This way, you can manage your expenses and buy a new car.

How to afford the car of your dreams?

To afford the car of your dreams, start by:

  • Setting a clear goal
  • Create a dedicated savings plan
  • Stay disciplined in your savings


Calculate how much you need monthly to reach your goal. Consider a SIP and avoid overspending. Research your options thoroughly to make informed choices and make that dream car a reality!

SEBI Registered Investment Adviser Details:

Registered Name : Finology Ventures Private Limited
Type of Registration : Non-Individual
Registration No : INA000012218
Principal Officer :  Pranjal Kamra | Email : pranjal@finology.in | Phone : 022-489-66660
BASL Membership ID : 1565
Validity : Dec 17, 2018 - Perpetual

Registered Address : Finology Ventures Pvt. Ltd., 4th Floor, Avinash One, VIP Road, Opposite to Magneto Mall, Raipur, Chhattisgarh - 492001.
CIN : U74999CT2018PTC008679
Telephone : 022-489-66660 | Email : support@finology.in
Corporate Office : Finology Ventures Pvt. Ltd., 4th Floor, Avinash One, VIP Road, Opposite to Magneto Mall, Raipur, Chhattisgarh - 492001

SEBI Local Office: LIC Complex, Jeevan Bima Marg & Pandri Road, Devendra Nagar, Raipur, Chhattisgarh, 492004.

Disclaimer & Disclosure

The securities quoted are for illustration only and are not recommendatory.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Please read the complete disclaimer here.