How much salary do you need to buy a Maruti Celerio, EMI calculated
A look at the on-road price, down payment and EMI math for buying a Maruti Suzuki Celerio
Owning a car and being able to travel with family is a dream for many. But with rising car prices and expensive loans, it is important to work out a budget before buying a new car. For buyers looking for a budget car with good mileage, the Maruti Suzuki Celerio is an option. Here is the full math on its on-road price, down payment and EMI.
The Maruti Suzuki Celerio's starting ex-showroom price is between about Rs 4.70 lakh and Rs 6.75 lakh. The on-road price varies depending on the variant, city, RTO, insurance and other charges. The base model's on-road price is around Rs 5.10 lakh, while the top CNG or automatic variant can cost up to around Rs 7.55 lakh on-road.
The 20/4/10 rule is often used for financial planning while buying a car. It suggests paying at least 20 percent of the car's on-road price as a down payment, keeping the loan tenure to around 4 years, and keeping the EMI within a limited portion of monthly income. However, the actual down payment, loan tenure and EMI depend on each person's income, existing loans and household expenses.
Take the base LXi model of the Celerio, with an on-road price of Rs 5.10 lakh. A 20 percent down payment of about Rs 1.02 lakh would mean taking a car loan of around Rs 4.08 lakh. If this loan is taken at 9.5 percent interest for 5 years, the EMI could work out to about Rs 8,560 a month. If the EMI is kept between 10 and 15 percent of take-home salary, this loan could be relatively manageable for someone earning a take-home salary of around Rs 30,000 to Rs 35,000 a month. However, this calculation can change depending on other monthly expenses and loans.
The budget rises for those considering the top-end or CNG/AMT variant of the Celerio. If this variant's on-road price is taken as around Rs 7.54 lakh, a 20 percent down payment of about Rs 1.50 lakh would be needed, leaving a loan of around Rs 6 lakh. At 9.5 percent interest over 5 years, the EMI could be around Rs 12,600 to Rs 12,700 a month. To keep the EMI within 10 to 15 percent of salary, a monthly take-home salary of around Rs 45,000 to Rs 50,000 or more would be more comfortable for such a variant.
Buying a car is not just about the EMI. Fuel, insurance, servicing, tyres, parking and other maintenance costs also need to be added to the budget. Driving around 800 to 1,000 kilometres a month could mean a few thousand rupees of extra fuel expense. The Celerio has good mileage, but actual mileage depends on driving style, traffic, fuel type and usage.
The Maruti Suzuki Celerio is a budget car, but before buying, it is important to add up the down payment, EMI, fuel, insurance and maintenance costs. By this math, the base model could work for some buyers earning Rs 30,000 to 35,000 a month, and the costlier variant for those earning Rs 45,000 to 50,000 or more. It is important to check your ability to repay the loan against your monthly budget before making a final decision.
