Wondering how you can buy a car without EMI? Here’s how!

Gulshan Kumar

Are you thinking about buying a car? Your budget might be a constraint to purchasing the vehicle, but you can still aim to buy a car without any EMI. For the last five years, insufficient cash for paying as EMI’s has become a common problem because of recession and many financial issues at the individual level even though it is said that the Indian automotive market is the fifth largest in the world. You can attempt to buy a car without EMI by following the tips mentioned here:


The first step to buy a car is to start saving money early. Yes, you have heard it correctly. You can buy a vehicle without EMI by creating your savings early on. The more time you give for saving, the more will be the interest on that amount, and in turn, you will get higher purchasing power. If you let yourself borrow from others to buy a car, you will have an impending loan to clear. If you want to be self-sufficient and not have EMI’s, it is better to start saving early on, even if you have a small amount.


Review your expenses and try to bring them down as much as possible. Make a list of all the unnecessary items you buy, and then cross those off your list. For example, instead of luxury items like expensive clothes or gadgets you don’t really need, set aside some money to buy a car without an EMI. This will help you save a lot of money as you will not have to spend those amounts on unnecessary items.


You should set your budget before buying a car. For example, calculate the estimated cost of purchasing and operating the vehicle, its maintenance charges, etc. After deciding the budget, choose a suitable car depending on your needs. It might be a good idea to compare the prices of various vehicles in the market before buying a car. Compare prices of petrol and CNG versions as well as compare the fuel efficiency of multiple cars. For example, diesel cars have comparatively low maintenance costs, but they are more costly than petrol cars. Consider a second-hand vehicle instead of a new one if it’s possible to get an old model at a better price.


To buy a car without EMI is to open an account called Systematic Investment Plan or SIP. You can invest a small amount of money every month to have enough to buy the car needed at the end of the term. By investing early, you will get more interest, and by seeing this, your savings will increase. Also, the amount will have more purchasing power with time, and you can buy a bigger car option for yourself.


Consider buying in a co-owner transaction if you cannot save enough money to buy a car yourself. There is no EMI involved in it, and the full amount for the vehicle needs to be paid only once. But make sure that you and your friend or relative who will buy the car together get on the same page. For example, you can consider a family member or a friend who has sufficient savings to be your co-owner.

To buy a car without EMI is possible by following the tips mentioned here. However, it might be difficult for people with low income. One can save money through different means to have the required amount to buy a car. If you have enough money with yourself, then never borrow, even if interest rates are low. Always invest in SIP for purchasing a vehicle without EMI. You can choose a car based on your primary needs and requirements by comparing the prices of various vehicles in the market.