Buying a New car is an emotional decision in your life, as I began studying my investments carefully I realized that investing money in a new car is costly than hiring a car daily!!
I am sure you will not believe it ..
So here are simple calculations from my side …
|New car price (assumption)||6,00,000 Rs|
|Resale value after Six years||1,00,000 Rs|
|Net investment in car for Six years||=6 Lac-1 Lac = 5 Lac Rs|
|Number of Days in 6 years||2200 Days|
|Investment cost in car /Day||=5 Lac/2200 days||230 Rs /Day|
|Car Insurance per year = 15,000 Rs||= 15000/365||41 Rs /Day|
|Car Petrol /Day||100 Rs /Day|
|Battery + Tyre Replacement|
(once in 3 years)
|25,000 Rs||23 Rs/Day|
|Maintenance per Year||9,000 Rs||25 Rs/Day|
|Driver Payment||9,000 Rs||300 Rs /Day|
|Interest loss on 6 Lac investment||8% interest consideration||131 Rs /Day|
|Daily Expenses of NEW Car||850 Rs /Day|
Now see the image below showing Uber Pune estimate from Chinchwad to Pune (one way), which shows approx cost of 300 Rs (with Driver and convenience to change directions or anything) so even you travel say from Pune to Chinchwad and back daily, you will spend less amount than owning a car !
Now coming back to my main point again ..
you must have understood that you will save at least 200 Rs per day by not buying a NEW car .. so if you start saving it in Mutual Fund .. here are sample calculations …
Saving 200 Rs per day = 6000 Rs per month .. say you save 5000 Rs per month .. then this is what will happen at the end of Six years …
So you make @ 6 Lac Rupees at the end of sixth year !! Still using a hired car … what do you say ?