Middle class families consider it impossible to buy a car without applying for loans. But some financial planning can help you buy a car without getting a loan. 
 

Through diligent financial planning, you can reduce the burden of monthly EMIs.
 

Your financial planning for buying a car in five years, starts today. If a car is priced at Rs 7 lakh then in five years’ time, you will have to save at least Rs 10 lakh. 
 

For building this fund, you must invest somewhere with minimal or no risks. The investment must offer returns of at least 7 to 8 percent. 
 

SIP can be an effective method to accumulate a fund of Rs 10 lakh in five years. 

With the return of 8% and monthly investments of Rs 14,018 in month, the required funds will be ready in 5 years. 
 

In case of market fluctuations in mutual funds, you can adjust your SIP amount to compensate for any shortfall. 
 

Not taking a car loan offers many advantages. You can avoid the interest and EMI burden, saving a significant amount of money in the long run.