Planning to buy a car? Here's how 20-4-10 formula can save you from debt

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Buying a car is a dream for many. Some save diligently for it. Zero down payment offers are tempting, but avoid rushing into debt. City traffic makes bikes less safe. Cars offer better protection in accidents.

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For stress-free car buying, follow the 20-4-10 formula. It guides down payment, loan amount, and affordable car price.

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The number '20' in the formula signifies a 20% down payment of the car's price. Avoid 100% financing to minimise risk.

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The '4' represents a loan tenure of fewer than 4 years to reduce interest. The '10' means EMIs should be 10% or less of your income.