What should we do, buy a vehicle or invest the same money in some asset?
Indian auto sector is getting very advanced with their technologies, every month one or the other new launch is held in Indian auto sector therefore sales of motor vehicles is increasing day by day.
If you check the stats of Indian auto sector, individually the companies are losing their grip in the market but in total sale of auto sector in India is increasing as we our Indian market sold 1638674 in 2005 and 5174645 in 2018 including commercial vehicles so it’s clearly states that the auto market is booming but individually the sales of every company is affected because a decade ago there were only 5 to 7 cars manufactures in India but today there are so many options that in a very low cost one gets very good features and services and hence the companies individually are facing losses due to the rising new companies in the market.
Today the demand of auto sector is increasing because everybody wants a ride to show off in the society and due to which no body is interested in saving or investing money in market.
Why should we invest our money and not buy an expensive vehicle?
We can invest our money in real estate, SIP’s, mutual funds, ULIP plans etc.
But if we buy a vehicle and invest the same money in it, we may lose our hard earned within some time as the most depreciating product is an automotive vehicle in today’s generation especially after the government latest regulation say’s that a Diesel vehicle above 2000cc has a life of only 10 years in the India’s capital New Delhi. Almost every car above 2000 cc is INR 25 lacs and above, so these INR 25 lac spent on a vehicle is total waste after 10 years.
Now if you invest your INR 25 lac after doing a proper research in real estate you may end up having 12% per annum increase in the value with every month rental income for the next 10 years.
And now you might be thinking that how will you travel if you will invest all the money in the real estate. It’s very simple there are a lot of options ranging 3-5 lac. You can buy it by just paying 20% down payment and rest EMI you can pay from the rental you will earn from the monthly rental you will get from the property.
So it’s very simple that why to buy an asset then buying a liability from your hard earned money.