To make the most of your vehicle, use the age-old 20/4/10 personal finance rule, suggests Bindisha Sarang.

• To make the most of your vehicle, use the age-old 20/4/10 personal finance rule.
• 20 stands for the minimum percentage you should pay as down payment. This will decrease the overall cost of your loan.
• 4 means you should finance a car for no more than four years. If you opt for a longer tenor, you will end up paying more in interest cost.
• The sooner you close the loan, the earlier you will become the owner of the car. Until then it will be hypothecated to the lender.
• 10 stands for the maximum percentage of your monthly income you should shell out for your car EMI.
• Ideally not more than 30% to 35% of your take-home salary should go towards servicing all your debts.