The ‘Big Daddy of SUVs’ i.e. Mahindra Scorpio-N, which rules the Indian roads, has today become the first choice of every youth and family. But is just liking enough? To bring this to your home, let us understand in detail what should be the health of your bank account and what should be the mathematics of your monthly income.
mathematics of price and budget
Ex-showroom prices for the Scorpio N start around ₹14 lakh and go up to ₹25 lakh (top model). If we talk about its most popular Z4 or Z6 diesel variants, the on-road price (including insurance, RTO and other taxes) sits around ₹18 lakh to ₹20 lakh.
Complete account of EMI
Suppose you choose a mid-range variant of Scorpio-N which has an on-road price of ₹19 lakh.
- Down Payment: For safe financial planning, you should make a down payment of at least 20% i.e. ₹ 3.80 lakh.
- Loan amount: Now your total bank loan will be ₹15.20 lakh.
- Interest Rate and Tenure: If you take a loan for 5 years (60 months) at an average interest rate of 9.5%, your monthly EMI will be around ₹31,900.
What should be your salary?
There is a thumb rule in the world of finance – the 20/4/10 rule. This means that your car EMI should not be more than 25% to 30% of your in-hand salary. If your EMI is ₹32,000, your monthly in-hand salary should be at least ₹1 lakh to ₹1.20 lakh. With this, even after paying the car installment, you will still have enough money left for household expenses, investments and emergency fund. If you do not have any other loan (like home loan or personal loan), you can take the risk even with a salary of ₹80,000, but it may be a bit stressful.
Don’t forget hidden costs
Just paying EMI is not enough. A large SUV like the Scorpio N also comes with other expenses:
- fuel: Expenses of around ₹ 8,000-₹ 10,000 for driving 1000 km in a month.
- Maintenance: Set aside ₹2,000-₹3,000 every month for annual servicing and insurance renewal.
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