Should you take a car loan?

Taking a loan for buying a car, and paying around 10 percent interest on it is not uncommon. On one hand it gives ownership of a car while on other hand it makes you feel the pinch of EMIs.

But is taking a car loan worth it?

Sharing few thoughts -

- If you don't have enough cash in hand but buying car is a necessity due to commuting requirements or business requirements, there may not be any other option.

- If you think that you will become more financially disciplined & avoid unnecessary spending, then go ahead. But then, it poses a large question about your fiscal discipline.

- If you are using for your business, then you may be able to get tax benefits & loan may help.

- If you think that - "Interest rate is 10% only and mutual funds will give me 15 percent", then revisit your assumptions. Mutual funds/ stocks have historically given good returns, but are you sure that you will get 15 or 12 or 24 or whatever percent of "assured"returns they "promise"?

- If you want to upgrade your lifestyle because your position & lifestyle needs a Honda City and not Honda Brio, and you are not in a position to refinance, then rethink if you really need to go for this ...

- If your previous car is like 5 year old and you need to get a news one because everyone is having a new car, then rethink ...

What are your thoughts?

Comments

Random Birthday thoughts

As I would have cribbed @ 1000000000 words per day, I am currently at a place called Jhunjhunu where I have no social life to speak of, internet is the only thing that keeps me going, apart from few random movies or episodes of Seinfeld. So prospects of celebrating birthday in this solitary confinement are not that exciting! Too add to that, as I switched on my laptop yesterday night, I realized that it had conked off and is showing fan error as the reason. For me this was the end of world. And I knew not how would I survive! I hoped the issue will get sorted out in a week but it is too much to ask in this small town and this time period seemed to be an extremely optimistic guess. My birthday eve and early morning were spent on developing strategies on how to get it repaired. I couldn't find any IBM authorized dealer here, and I would have needed to send it to Delhi. There were two options - first was about sending it as a parcel to one of my friends at IBM , either directly or i...

Get cashback while doing online shopping

Originally published on BeingFinWise __ Cashbacks are an amazing way to save money while shopping. More so while you do online shopping. In addition to regular deals and discounts, you can get cashback if you go via affiliates . This way you can get cashback on your online shopping, over and above your regular deals. Some of the popular affiliate networks offering cashback on online shopping in India are Cashkaro , Gopaisa , Pennyful etc.

Survival

Dark clouds were looming at the horizon. In few minutes they would have traveled few miles in westward direction and came closer. This is not usually the scene at noon in the hottest month of the year. Dark clouds meant something ominous. Probably sign of an impending storm or maybe a cyclone approaching. Sea is a capricious lady. Bay of Bengal was no different. It was infamous for cyclones, and Orissa was often at the receiving end of nature’s fury. Ramdas was few miles into the sea. So were his brethrens of the fishermen community. There were around a hundred boats in the sea that day. No one anticipated the storm. So no one even thought of staying back at the shore and miss out on their livelihood of the day. Ramdas was alone in his boat. He owned the boat. His son helped him with his job. They managed to get enough as to earn a square meal a day. They had a good rapport with others of fishing community. But of late that relationship was breaking down. No reasons for that. Nor wa...

Some random movie reviews

1 holiday, 6 movies! 8 movies in a span of last 32 hours! Huh … That was too much … A mixture of good cinema and utter crap … of hardcore realism to escapism … of typical and offbeat … of some popular to some watched by a handful … a mixture of many differents actually! Just writing a purposeless random review of all of these – 1. 1. City of god – Excellent! Brazilian movie, at best understood with help of subtitles and visuals. An excellent depiction of a Brazilian slum, where kids having guns is not an uncommon site; where crime is a way of life. 2. 2. Love actually – Beautiful! A mushy love story … rather many mushy love stories …Karan Johar types, if some parallel has to be drawn to our desi phillum industry … with everyone from a school kid to Britain’s prime minister is falling in love. A good watch nevertheless! 3. 3. Jhom Barabar Jhoom – Crap Only good things are nice songs … but not that interesting with random jhoom baraabar...

Cycle

After a failed attempt at jogging, I roamed about aimlessly when an idea struck me to have a ride in a cycle, couple of which is lying in the “recreational area”. I was longing since long to ride a cycle sans motor. There was no particular reason for this feeling; it was that just I wanted to have a ride. The 2-3 km ride was a tiring experience, especially for one who is having this after a long time; but I was gleeing all along. As an infant, I loved going about in a tricycle. Then I became too big for it and got a cycle. After several attempts and many falls, I mastered the art. I used to flaunt it in front of my friends, who flaunted theirs. As I entered teens, the bicycle seemed smaller; so I got a bigger cycle. As years progressed, I learnt to ride a 2 wheeler. Now I started to find the bicycle too childish for my tastes. I tried to reason out why I should get a 2-wheeler to go to a particular place. Sometimes I succeeded to get it, and sometimes I didn’t and had to go around in...

Random Ramblings

Search This Blog