Buying car is not about choosing model, color, or features but it is also about making smart financial decision. And sometime everything is set from model to budget, but at the time of buying, most buyers get confuse with whose name is this car to be register.
And here most people instantly choose their own name without thinking twice. But one decision can help you to save money which is buying car in wife’s name. No, we are not saying this because this can impress your wife but has other benefits.
Well, In India registering car in your wife’s name comes with few financial benefits. To know each and every benefit of Buying Car in Wife’s Name in India, read the complete details below.
Road Tax Savings
The very first thing to start with is Road Tax Savings. In India many states takes road tax which is lower if your car is in a woman’s name. And this is ignore by lots of people.
So when you are paying the total amount for the car, the cost can come down a little bit. This Road Tax Savings may not look very big at first, but saving even a few thousand at the starting only is always helpful.
Loan Benefits
Taking loan on car is very common nowadays as nobody want to spend a lot at single time. And here comes a twist, women borrowers get lower interest rates from almost every banks. This interest rate is not that high, but save small also matters.
You can not notice this small saving amount at first but with years of EMIs, this slowly adds up can be seen. And like this with end to loan amount, you can save a decent amount.
Insurance Cost
Here is an another benefit of buying a car on wife’s name in India. Insurance is something which you can not avoid and have to renew every single year. And the twist in Insurance Cost is that if your car is on wife’s name you may get insurance at low cost.
Yes, lot of insurance companies offer lower premium when the car is in a woman’s name. Well, this is not fix rule but in many insurance companies it offered. The small amount increases as you keep renewing the policy every year.
Ownership & Financial Side
This benefits is ignore by lot of buyers as this is not about saving money. As your car is on wife’s name, it becomes here asset. This means she officially owns something valuable, which can help in improving her financial profile and credit score over time.
And this is very helpful in future as it is very helpful and may get more benefits when she apply for another loan. So in this way, it is not just about saving some money, but also about strengthening your wife’s financial position and making her self independent.
Must Know Things Before Buying Car in Wife’s Name
Before naming your car on wife’s name, you must have to note one important thing. This is the Motor Vehicles Act 1988 which clears that the person whose name is on the car is the official owner in the eyes of the law.
As per this rule, if you are selling, transferring, or going through any legal process, then you need her approval and involvement. So one must always clearly understand this at starting if buying a car.