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Asav Patel
Diagram: 1 This is How Middle Class People buy Car
Diagram: 2 This is How Rich People Buy Car

How Rich People Buy Cars? -

Now a days, Many Car Finance Options are available. So buying a Car is not a great deal now a days. In fact, if you are a Upper Middle Class than also you can afford Luxurious Cars such as Mercedes C Class (Rs.30 Lakhs) & BMW 5 Series (Starting from Rs.45 Lakhs).

But the thing here is that, How Rich people buy Cars that Middle Class don't?

Well, first of all we will discuss how Middle Class people buy Cars? See the Diagram -1. Middle Class people go for a Job, work hard and every month they receive a paycheck. Thy Live Paycheck to Paycheck. Now what they do? They put 10% Downpayment and take a Car Finance Loan for the rest of the 90% of Car's Value. Now they have Car. But every month, from their paycheck, a large chunk of money goes towards paying that Car Loan EMI.
And suppose if they loose their job for 3-4 months, they will loose their car also.
Now See the Diagram -2. This is How Rich people buy a Car. Means they also do the same thing. They put 10% Down Payment & take a 90% Car Finance Loan. Up to now, they do exactly same as that of Middle Class. But rest is the different.
For a Rich, The Income source is their Asset Column and not their Hard work (Paycheck). So Rich pay the Car EMIs from the Passive Income from their Asset Column. So weather Rich work or not, every month money will flow into their Income statement effortlessly from their Asset Column. And this money will go towards paying that Car EMI.
This is the main Difference between Rich and every one else. An Asset can be anything. It can be your Business, Stock Portfolio, Bonds, Rental Propery, Web Property or anything else. But the important thing is that, Rich firstly focus their time and efforts behind growing their Asset Column. They first generate a Passive Income stream (Income from Asset) and than Buy a Car while Middle Class work hard to increase his paycheck and than buy a Car.....
So Think Smart..... Buy a Car Like Rich.....Not Like Middle Class....!!!!!