Amidst the sea of cars in the automobile market of today, the Tata Nexon has managed to make a mark for itself as one of the leading compact SUVs in the Indian market- offering a right mix of style, safety, features and performance.
But squeezing this dream car into your monthly budget takes a great deal of financial discipline. This complete guide will assist you in traversing the EMI jungle if you’re making in the neighborhood of ₹60,000 per month and have your sights set on the Tata Nexon.
Table of Contents
Knowing Your Financial Limits
Before getting into the calculations for EMI, let’s set some ground things. On an average, financial advisors suggest that your car EMI should not be more than 15-20% of your monthly income.
Ÿ You have ₹60,000 and along with an EMI of ₹9,000-12,000 maximum.
But this isn’t a hard and fast formula — your individual financial circumstances, existing responsibilities and future goals should ultimately dictate what you’re comfortable with.
“When I bought my Nexon, just last year, my financial advisor didn’t even go over which variant I want but asked me how much of my monthly salary I can pay as EMI,” says 32-year-old Pune-based IT professional Rajesh Kumar.
“That really turned everything around for me.
Tata Nexon Variants and Costs Decoded
The Tata Nexon is available is several options and the price can vary greatly:
Nexon Petrol Prices: ₹8 lakhs and 13.5 lakhs (ex-showroom)
Diesel variants in Nexon: ₹10 to ₹15 lakhs (ex-showroom)
Nexon EV variants: ₹14.5 lakhs to ₹19 lakhs (ex-showroom)
Let’s not forget, these are ex-showroom rates. On-road costs will include the vehicle’s registration, insurance and stamp duty which usually impress 15-20 per cent on the price of a vehicle.
How to Determine the Right Down Payment for You
Simple golden rule of car financing is the more you pay as down payment the lower your EMI burden would be.
Having an income of ₹60K per month gives you a good standing to be able to put aside the up-front payment of 30-40% of the price of the car.
For instance, say you want mid-level Nexon petrol with a price tag of around ₹11 lakhs (ex-showroom):
30% advance: ₹3.3 lakhs
Loan amount: ₹7.7 lakhs
This option would bring down your EMI obligation by a huge margin. But don’t drain your emergency fund just for a larger down payment. Keep a balance between the financial cushion you need now vs. down the line.
Loan Term: The Sweet Spot by Dusty Weis In this world, there is a time for everything.
Usually you have 1-7 years to repay a car loan. But the longer the life of the loan, the more you’ll wind up owing in total interest, even though your monthly burden may be lower.
For example, consider an NRI who takes a ₹7.7 lakh loan at 9% interest:
3 years: ₹24,500 p.m (Total interest: ₹1.1 lakhs)
5 year tenure: ₹16,050 per month (Total interest: ₹1.9 lakhs)
7 years: ₹12,500 per month (Cumulative interest: ₹2.8 lakhs)
On a ₹60K budget, 5 and 7 years sound more doable. But which option is right for you is a matter of your priorities: whether you are more focused on reducing your total cost or on tamping down your monthly burden.
“I chose 7-year to keep my EMIs at about ₹11,000. After six months, I realized I could handle more and changed to a five-year plan.
Bank charged a nominal fee but i will save almost ₹ 70k in interest,’ explains nexton owner Meera Sharma from Bengaluru.
Negotiating Interest Rates
There may be large differences in interest rates from one lender to another. The current rates on a car loan tend to fluctuate and are running between 8.5% and 11.5%. That 1% can mean big savings over the life of the loan.
For a loan amount of ₹7.7 lakh with a tenure of 5 years:
At 9% interest: EMI of ₹16,050 (Total interest: ₹1.9 lakhs)
At 8% interest: EMI of ₹15,580 (Total interest: ₹1.65 lakh)
That’s a saving of nearly ₹25,000 by just dropping the rate of interest by 1%!
Make use of your bank relationships, a healthy credit score, or periodical opportunities like festive seasons (year end or any other festival,) when special rates are announced. Don’t be afraid to negotiate — most banks have a bit of wiggle room to keep your business.
Special EMI Schemes for Tata Nexon
Tata Motors often rolls out special financing schemes which can make the Nexon more accessible to you:
Step-Up EMI Plans: They begin with lower EMIs increasing slowly over the loan tenor, which is convenient for young professionals whose income is expected to rise.
Balloon Payment Schemes: These require you to pay a larger amount after the end, resulting in lower EMIs for the term. But tread lightly here, and only if you are comfortable up your financial future.
Festive Season Offers: Keep an eye out for seasonal offers or promotional interest rates on occasions such as Diwali, Navtrace or New Year.
Corporate Employee Programs: There are certain companies that have a rental tie-up with Tata Motors that allows the employees to avail special discounts or financing options.
If they do, see if your employer is participating.
“I managed to get a discount of ₹1.2 lakhs on my Nexon EV by availing the festive discount and a special interest rate from my bank,” recalls Arjun Mehta, who was one of the customers who purchased his car during Diwali 2020.
Beyond the EMI: Invisible Costs to Take Into Account
Your financial planning cannot stop at EMI calculations. Owning a car carries a number of recurring costs:
Insurance: INR 15,000-25,000 depending on the variant every year
Fuel/Charging: Around ₹5,000-8,000 per month (for average use) (even lower for the EV version once managed the fixed charging set-up)
– Maintenance: It costs about ₹10,000-15,000 per annum once the warranty is over
Loan Processing Fee: One time fee, between 0.5-1% of loan amount
Assuming a monthly salary of ₹60,000, when you leave about ₹16,000 in hand for the AEC—and this is free of any other costs if not for the car—then the residual here is around ₹44,000 including for these car-centric expenses.
Remember these in your overall budget so you can avoid financial issues later on.
Creative Financing Methods Create a Budget You don’t have to spend a great deal of money to make the event a success and creativity can go as far as you let it.
Several namely that could help you as you work through your car financing:
Look at Certified Pre-owned: A Nexon which is just 1-2 years old can cost you 15-20% less without any reduction in experience because generally TATA vehicles don’t have a problem with 1-2 years just make sure to inspect the car well.
Lease vs. Buy Analysis: In certain situations, leasing a vehicle could equate to lower monthly payments than making a purchase. Before making a decision, determine your total cost of ownership over your anticipated use period.
Family co-application: If you aren’t able to get a good deal on the interest rate, perhaps getting a financially stable family member to apply along with you can help you bring it down a bit.
EMI Holiday Periods: Lenders may give you an option to pay your first EMI between 3-6 months, this gives you time to prepare your finances. But interest does accrue during this time.
Real-life EMI strategy: A case example
Take the case of Vikram and Priya who earn a total monthly income of ₹95,000. Their method of financing their Nexon XZ+ Diesel model provides important takeaways:
Price of car (on-road): ₹14.2 lakhs
Advance: ₹5.7 lakhs (40%)
Loan amount: ₹8.5 lakhs
Tenure: 5 years
– Rate of interest: 8.75% (they could bargain with Priya’s employer’s corporate tie up)
EMI: ₹17,600
Other prepayments: 50,000 p.a. from bonuses
“We had planned to go with an EMI which was a little more than 15% of our income but we adjusted by not eating outside and travelling in the first year,” says Vikram.
“If we do annual prepayments, then we will be able to clear the loan in less than 4 years and not 5 years and we can save approximately ₹65,000 as interest,” he said.
Making Your Decision
So all things considered, here’s a step-by-step guide to paying for your Tata Nexon on a ₹60K per month plan:
Evaluate Your Financial status: This would mean being honest about your present financial situation – debts (if any), savings and financial goals going forward.
EditingStyleGo for the mid range variants of the Nexon if you don’t need the very top end features Target_Process If you can drop higher end features.
Save 30-40% down It is nice to have some good down before jumping in.
Compare across offers from multiple lenders such as Banks, NBFCs and Tata Motors Finance.
Time your shopping for promotional times for the best discounts.
Ensure that the sum total of your car/cars (EMI, fuel, insurance, maintenance) remains 25-30% of your monthly income.
Buying a Tata Nexon on a monthly budget of ₹60,000 is not impossible and can be achieved by planning your investment and availing strategic finance.
The secret is to balance feature lust with fiscal responsibility. Keep in mind, car ownership goes beyond your at-the-showroom experience and the EMI payments you sign up for—it’s a long-term financial relationship that should make your life easier, rather than it making it difficult.
Plan: Planned buying is about the approach you take towards purchasing a car – whether you do so with clarity on financial boundaries, investigating all the financing options at hand, and being fully aware of the total cost of ownership can ensure you drive home your dream Nexon, not your finances.
My Nexon has become much more than a car for my family—it has been our travel companion on numerous weekend getaways.
But the peace of mind comes from the knowledge that the EMI fits snugly in our budget, letting us live those experiences without fretting the fiscal burden,” muses Aditya Nair, a happy Nexon owner based in Hyderabad.
If you plan things properly, your 60K salary will help you drink in the luxurious feel of aTata Nexon, along with the lifestyle it brings along.
Tags: #TataNexonFinancing #CarLoanTips #AffordableSUVOwnership
