Below is the verbatim transcript of Mathpal's interview with CNBC-TV18.
Q: Is it better to buy a car on equated monthly installments (EMI) versus paying full down payment? What happens when an investor misses few EMIs?
A: Car is a depreciable asset, so as far as possible one should buy with a down payment only. I will give an example, if one buys a car worth Rs 10 lakh and loan is for next five years and the rate of interest is 12 percent, one will pay around Rs 13.30 lakh for Rs 10 lakh car, including principal and interest. If one wants to sell that car after five years then I do not think he will get more than Rs 5 lakh. However, for Rs 10 lakh one will be paying Rs 13.35 whereas that value is decreasing with time.
Are guaranteed savings insurance plans better than PPF?
So, if one has money to pay, it is always good to buy with down payment only. If one cannot afford to buy a big car then better buy small car but as far as possible try to avoid taking loan for the car. When one buy a house it appreciates with time, so there is no harm even in going with interest with loan. However, for car sort of things, it is always advisable to go with full down payment as far as possible.
Secondly, when one miss some EMIs and has opt for electronic clearing system (ECS) and if due to insufficient fund or some other reason the money could not be debited from the bank account, in next month whatever the due amount is that will go but the amount, which is pending and if it is not paid then the bank will remind for that and even though if it is not paid then it will keep on increasing with the interest. So, after the term of loan is over and when one apply for No Objection Certificate (NOC), at that time the bank will ask that amount along with interest.
Also Read: Seeking both Large & Mid cap exposure? Opt UTI Equity Fund
If these EMIs are missed in the first year itself and loan is for five year terms then one will not be able to imagine how much additional interest he will have to pay on that? So, as soon as one realizes that some EMIs are missed then one should pay that. That is better.
Anda sedang membaca artikel tentang
Advantages of buying a car via full down payment over EMIs
Dengan url
http://untukkesehatanda.blogspot.com/2013/03/advantages-of-buying-car-via-full-down.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Advantages of buying a car via full down payment over EMIs
namun jangan lupa untuk meletakkan link
Advantages of buying a car via full down payment over EMIs
sebagai sumbernya
0 komentar:
Posting Komentar