Rich Wont Tell You Secret to Buy a Car for Free; Check here
Deepak Gupta | May 26, 2025 |
Rich Wont Tell You Secret to Buy a Car for Free; Check here
Whenever you buy a car you want to make the full payment for the car, but rich people don’t do that. Before you rush to make the full payment, let us share with you a secret strategy the rich people use to buy their dream car without spending a single extra rupee from their pocket in the long run.
Yes, it’s possible to buy your car and get it almost free by using the power of leverage and compounding.
Most people believe that making a full down payment while buying a car is a smart and debt-free decision. But smart investors think differently. They know how to use good debt and invest smartly to generate returns that beat the cost of the loan—and even make a profit on top.
Let’s say you want to buy a car worth ₹25 Lakhs.
Instead of paying the entire amount upfront, here’s what you should do:
Make a Down Payment of ₹5 Lakhs
Take a Car Loan of ₹20 Lakhs at 9% interest
Invest the ₹20 Lakhs (you didn’t use for down payment) in Mutual Funds
Particulars Amount
| Particulars | Amount |
|---|---|
| Mutual Fund Investment | ₹20,00,000 |
| Estimated Value after 5 Years (Assuming 15% CAGR) | ₹40,00,000 |
| Car Loan to Repay | ₹20,00,000 |
| Interest on Car Loan (approx) | ₹5,00,000 |
| Down Payment | ₹5,00,000 |
| Total Outflow | ₹30,00,000 |
| Investment Value | ₹40,00,000 |
| Net Gain (₹40L – ₹30L) | ₹10,00,000 |
After 5 years tour car is fully paid off and you’ve recovered your down payment and interest.
AND you still have ₹10 Lakhs extra from your mutual fund investment.
This is the power of compounding and strategic investing.
Because they understand:
The cost of loan interest is fixed, but mutual fund returns are potentially high over time.
Money should always be put to work, not just spent.
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