POSTED BY July 26, 2013 1:48 pm COMMENTS (5)ON
I am planning to buy a new car.. Here are some financial details of mine:
Balance Home loan: 3,28,000/- (Tenure of 4 yrs+ approx @ 10.25%, EMI 8k+)
Cash in hand: 2,00,000/-
Home loan Prepayment already done: 1,50,000/- (IDBI) Takes care of this yrs tax
Expected Car Loan Rate: 10.5% (SBI)
I am confused between Home loan prepayment Vs Downpayment of Car.
Cash in hand is not sufficient to settle home loan completly. Should I go for New Car this year and use my next few months saving to prepay home loan next year so that I can benefited on tax too? Or I finish my home loan completly so that I can go for bigger Car next year. I do own a Santro right now.