So, you’ve set your sights on the new Maruti Suzuki Grand Vitara? It’s a significant decision, but before you hit the road, let’s talk money. Purchasing a car encompasses more than simply considering the sticker price. Let’s break down the costs in simple terms to understand what it takes to bring home your desired vehicle.
Ex-Showroom Price
The base model of the Grand Vitara kicks off at ₹10.76 lakh. This figure represents the initial cost of the car and excludes additional expenses such as road tax, registration, and insurance.
On-Road Price
The on-road price encompasses the vehicle’s actual cost along with governmental charges. For instance, in Delhi, the on-road price for the base model is approximately ₹13.03 lakh. Note that this amount may vary slightly depending on your location.
Down Payment
To drive your new car home, you’ll need to make a down payment. Typically, this amounts to 20% of the on-road price. For the base model of the Grand Vitara, your down payment would be around ₹2.61 lakh (20% of ₹13.03 lakh).
Monthly EMI
After the down payment, you can finance the remaining amount through a loan. Assuming a loan of ₹10.42 lakh, let’s calculate your monthly EMI:
Loan Amount: ₹10.42 lakh
Loan Tenure: 5 years (60 months)
Interest Rate: Varies by bank (typically 8 to 10%)
Using an online EMI calculator, your monthly EMI would hover around ₹21,000.
Annual EMI
Multiply your monthly EMI by 12 to determine your annual repayment. For the base model of the Grand Vitara, your annual EMI would be approximately ₹2,52,000.
Income Considerations
Now, the pivotal question arises: What should your income be to afford the car comfortably? Ideally, your EMI shouldn’t surpass 30-40% of your monthly salary.
Monthly Salary: ₹70,000 (approx)
Annual Salary: ₹8,40,000 (approx)
With earnings falling within this range, you can bring home the Grand Vitara without straining your finances.
Decision
While these calculations provide estimates, actual figures may vary based on interest rates, loan tenure, and individual circumstances. Before making a purchase, seek guidance from a financial advisor or your bank.
So, with a solid financial plan in place, your dream of cruising in a new car could soon become a reality!
