Thinking of taking a car loan? Hold it right there! Did you know that the value of a brand new car depreciates by 20% when you drive out of the showroom! Add to this a 15% depreciation in value each year (assuming normal wear and tear) the govt recommends!
This implies in the first few years and certainly before you pay out the loan the value of the car will be lower than the balance in your car loan!
Suppose you didn't take the car loan but instead invested an amount equal to the EMI you intended to pay, could you buy an used car in 2-4 years and safeguard yourself against the initial steep depreciation in car value?
Use this calculator to find out!
Download the Think Before You Take That Car Loan Calculator!
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