Buying a Pre-owned car can make you Crorepati
Are you planning to buy a brand new car ? If yes, Hold on. What if I tell you that instead of buying a brand new car, go for a pre-owned car & in turn you can become crorepati in the years to come. Let’s see how:
Gaurav age 30 childhood dream was to buy a brand new car when he starts earning well. At 30 he is earning well and have saved Rs.8 lakh till date. Now it’s time to take action and buy a brand new car. In 8 lakhs he has various options to select from.
His financial planner insisted him buying a pre-owned car instead of buying a new one. The logic here was that Gaurav traveling per month was less than 500 km and a two year old car will solve the purpose.
So Gaurav finally settled for a pre-owned car in Rs.5 lakhs. Remaining 3 lakhs out of his savings of Rs.8 lakh was invested for his retirement days. His current age is 30 & he is planning to retire at 60. In total the investment of Rs.3 lakhs will grow for 30 years in a row.
Let’s see, how by adjusting a little bit on his desire can reward him at the time of his retirement. Assuming his investment grows at 15% per annum, 3 lakh will become approx 2 crores at 60. Here investment rate is taken as 15%.
From this 2 crores, Gaurav can get a pension of Rs.1 lakh per month from 60 till he survives. On his demise, 2 crores will be given to his nominee. Here post retirement investment rate is taken as 6%.