Are you ready to hit the road with your first car? Our latest blog, “5 Steps to Buying Your First Car” on LXME, is your go-to guide for a smooth ride into car ownership.
From setting a budget to exploring financing options and choosing the right model, this comprehensive piece breaks down the process into five crucial steps.
Read the full blog here and embark on your journey towards your first set of wheels with confidence and clarity. Happy driving! 🚗✨
Musician Sappna needs to carry around her own drum kit at least at local gigs. Since the musician’s husband travels most of the time, the lady of the house decided to do her own wheel-shopping. Here’s how Sappna went about her first car purchase.
Sappna had been investing out of her gig fees since her first big show with her band. Right from deducing the size of the vehicle, to choosing the model and how much she needed to spend on the car were things she had given extensive thought.
When gigs began pouring in literally by the dozen each month, Sappna was ready to solve her ability problems with her own money, without any loans. But she quickly realised that buying a car entails a lot of decision-making – a lot of it is in the moment, or requires further consideration.
Know Your Needs
Before setting out to the car dealership, Sappna took some time to research car sizes, styles, and features. Since a baby was on the anvil, she had to factor in the safety and comfort of the delicate little life as well.
Knowing what she needed, helped her narrow the options and select a car that was just right for her.
New or Used
Sapnna didn’t want to buy a second-hand car as it comes along with high maintenance costs. Despite the slightly tight budget, she loosened the purse strings a bit more for she could do with a few trips less to the garage for frequent breakdowns.
Sappna may have spent many Sunday mornings salivating at the latest models that hit the road. But the months and years between dreaming and the actual transaction taught her that every time a new model was launched, the old one became surprisingly affordable. Without having to create a lot more room in her budget, the girl kept beat with a fairly recent model.
Sappna was tempted to buy the car in a ‘less expensive’ location, but discovered that state transport authorities would’ve made her pay applicable registration charges and road taxes. The RTO too would’ve charged the difference – all in all, making it an even more expensive proposition! On the other hand, there are certain times in the year when most buyers stay away from new purchases out of superstition. Looks like being agnostic paid off for Sappna!
Dealerships stand to profit via hefty insurance policy commissions on every sale. Sappna bought insurance separately after shopping around and taking a few quotes. She saved a good 30% by bypassing the dealer.
Aside from insurance and the accessories, Sappna was in for a bit of a shock on the costs that followed about a month into owning her new SUV. Fuel prices replaced atta-dal talk, service schedules and tyre changes were dinner conversation, and depreciation just threw her off.
Like any other large purchase, the key to buying your first car lies in planning, research, and good money management. This is not a decision to rush into.
So, Sappna didn’t rush, first saved and invested money for 2-3 years in debt mutual funds which helped in growing her money in the short term and fulfilling her goal.
You can also check out LXME Goal Calculator in order to calculate the investment amount you need to invest in order to fulfill your desired corpus.
Just like Sappna Desai did, take your time, and get exactly what you need at the best price.
Share this blog with your friends and family if you find it insightful!!
Download the LXME app now to start investing! Happy Investing!
FAQs Around Buying Your First Car
What is the best age to get your first car?
Consider your financial situation for initial and ongoing costs.
Evaluate if you can afford the responsibilities of car ownership.
Assess your current life stage and transportation needs.
Opt for car ownership when it aligns with your lifestyle.
What is the 20/4/10 rule for a car?
20% Down Payment:
Aim for a 20% down payment to reduce loan burden.
Minimize monthly payments and interest costs.
4-Year Loan Maximum:
Limit car loans to a 4-year term.
Avoid long-term commitments for better financial flexibility.
Total Monthly Car Expenses at 10%:
Ensure total monthly car expenses, including insurance and maintenance, stay below 10% of your income.
Maintain financial balance for other priorities.
Explore LXME’s Blog for a detailed guide. Make your first car purchase a well-informed and financially sound decision.
Smart Money February 23, 2024
ULIP Vs. Mutual Funds: Which is the Better Investment Option?
On the road to financial freedom and empowerment, women have several investment options available for them to choose from. Two among them are: ULIPs and Mutual Funds. In this blog, we’ll cover ‘what is ULIP plan?’, how ULIP works and the difference between ULIP and mutual fund. Read on to find out which between the … ULIP Vs. Mutual Funds: Which is the Better Investment Option?
Investment Strategies During Economic Downturn
Every woman must have heard the words, ‘recession’, ‘economic downturn’ or even ‘market crash’ while watching the news. These terms can be scary and it can lead a person to panic. But, as a woman on LXME, you should know that there is no reason to be scared. In this blog, we’ll talk about what a … Investment Strategies During Economic Downturn
Smart Money Uncategorized February 21, 2024
Empower yourself with LXME’s Fixed Deposits
Invest in Fixed Deposits: Target High Returns with LXME Welcome to LXME, where empowering women to become astute money managers is our mission. We are thrilled to introduce our newest offering: Fixed Deposits (FDs), tailored exclusively for women who aspire to secure their financial future. With LXME’s Fixed Deposits, you can invest in FD schemes … Empower yourself with LXME’s Fixed Deposits