Need financial planning for purchase of car in 2 years

POSTED BY Prabhu Ravichandran ON April 3, 2014 8:42 pm COMMENTS (9)

Friends,

I have planned to buy a car in the next 24 months. I’m planning to pay only cash. I have a target of 5 lakhs. I’m planning to buy a new or used car within that price range. I can set aside Rs.15,000 every month towards this goal.

How can I plan to get the rest from investing this 15,000 every month?

I’m not very familiar with equities and markets and not willing to risk by directly investing in markets.

Thanks in advance.

-Prabhu

9 replies on this article “Need financial planning for purchase of car in 2 years”

  1. ashalanshu says:
    April 7, 2014 at 12:04 pm

    Dear Prabhu, thanks for sailing in the same boat. 🙂

    Thanks

    Ashal

    Reply
  2. ashalanshu says:
    April 6, 2014 at 2:17 am

    Dear Prabhu, as you can delay a bit, you can easily get your goal. 15K mly means in 32 months, you ‘ll be having 5L Rs. in your pocket. But my dear friend, at that time restrict your purchase to your target budget and do not try to go overbudget. 🙂

    Thanks

    Ashal

    Reply
    1. Prabhu Ravichandran says:
      April 7, 2014 at 10:49 am

      “But my dear friend, at that time restrict your purchase to your target budget and do not try to go overbudget.”

      Exactly my thoughts. I intend to remain firm. 🙂

      Thanks again.

      Reply
  3. ashalanshu says:
    April 4, 2014 at 10:55 am

    Dear Prabhu, is sky going to all if car is purchased by you after 3Y and not 2Y? Are your other things in place? Retirement planning, Life insurance, Health insurance, emergency funding?

    Thanks

    Ashal

    Reply
    1. Prabhu Ravichandran says:
      April 5, 2014 at 10:09 am

      Ashal,

      “is sky going to all if car is purchased by you after 3Y and not 2Y? ”

      Thanks for being blunt.

      No, it is not going to fall. 🙂 It can wait for 3 years as well.

      I do have Retirement planning, Life insurance, Health insurance, emergency funding planned.

      Thanks again.

      Reply
  4. Hemanth Chandra says:
    April 3, 2014 at 10:54 pm

    Dear Prabhu,

    Please follow as Vijay said.

    Regards,
    Hemanth.

    Reply
    1. Prabhu Ravichandran says:
      April 5, 2014 at 10:10 am

      Thanks Hemanth.

      Reply
  5. vijay says:
    April 3, 2014 at 10:25 pm

    If you want to keep away from markets, ignoring the taxation on the returns, a RD with 9% over 2-1/2 yrs will take you to your car’s financial target.

    Used car could be a risky proposition though. No offence to others, but I haven’t see many Indians that take proper care of their cars. Imagine if you have to do an overhaul of your engine or replace the timing belt or some such crazy thing….if you are not very knowledgeable about cars, a used car could be a bigger risk than the market!

    Reply
    1. Prabhu Ravichandran says:
      April 5, 2014 at 10:07 am

      Thanks Vijay.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.