Let us find out if you can afford the afford the only sub-500cc Italian supersport
Now that appraisal season is around the corner or you may have already received your salary hike, some of you might be wondering if you can afford what is arguably one of the best value-for-money, entry-level, twin-cylinder sportbikes in the country, the Aprilia RS 457. It is currently priced at around Rs 4,81,000 on-road Delhi, though this may vary slightly depending on your city, state, and dealer. But before you head to a showroom, it would be smarter to know beforehand how much you need to earn to comfortably pay for the bike – especially if you are considering taking a loan. And don’t worry – we have done the math for you.
Monthly Income Summary
|
Monthly Income |
Recommended EMI |
Max Loan Amount Possible |
Total Loan + Downpayment |
Enough for an Aprilia RS 457? (Rs 4,81,000) |
|
Rs 20,000 |
Rs 3,000 |
Rs 1,44,500 |
Rs 1,92,600 |
Not enough |
|
Rs 50,000 |
Rs 7,500 |
Rs 3,61,300 |
Rs 4,09,400 |
Enough, if EMI increased to Rs 10,464 |
|
Rs 1,00,000 |
Rs 15,000 |
Rs 7,22,620 |
Rs 7,70,720 |
More than enough |
Wondering how exactly we arrived at this conclusion? Well, we have calculated it all out in the following sections.
Loan Amount
To calculate how much loan you can afford based on your monthly salary, we will consider slabs of Rs 20,000, Rs 50,000, and Rs 1,00,000. A good principle to follow when making big purchases is that the EMI amount should not be more than 15% of your monthly salary. We will consider the most common rate of interest for vehicle loans – 9% per annum, and loan tenure of five years (60 months).
Down Payment
As mentioned earlier, the on-road price in Delhi for the RS 457 is around Rs 4,81,000 after adding insurance and RTO registration charges to the ex-showroom price of the motorcycle. The down payment at 10% value of the total cost for the bike comes to Rs 48,100.
EMI Calculation Formula
P × R × (1+R)^N / [(1+R)^N-1] where:
-
P = Principal loan amount
-
N = Loan tenure in months
-
R = Monthly interest rate
If math is not your strong suit, no worries – you can use our EMI calculator where you can simply enter the parameters and get your final amount. The total cost of the bike after the five-year loan adds up to about Rs 5,87,260.
Rs 20,000 Income
-
For a monthly salary of Rs 20,000, the maximum recommended EMI possible is Rs 3,000 (15% of income)
-
Based on the EMI formula, the loan amount that can be borrowed comes to Rs 1,44,500
-
Including the 10 percent down payment (Rs 48,100) it totals to Rs 1,92,600
-
This amount is far below the cost of the bike (Rs 4,81,000)
-
So, this income level is not enough to pay for the motorcycle
Rs 50,000 Income
-
With a monthly income of Rs 50,000 – the EMI that can be taken is Rs 7,500 (15% of salary)
-
Based on this EMI, the maximum loan that can be taken is Rs 3,61,300
-
If the Rs 48,100 down payment is also included, the total adds up to Rs 4,09,400
-
This is Rs 1,77,860 short of the bike’s total cost
-
If you can increase your EMI by Rs 2,964 more (to Rs 10,464) – you can afford the bike
-
This income level is just about enough if you can cut down on some non-essential monthly expenses – this is recommended only for those who don’t have the patience to wait for the next year’s appraisal, and want to buy the bike this year somehow
-
Ideally if your monthly income is Rs 5,000-6,000 more – closer to Rs 60,000, then it will be even more convenient
Rs 1,00,000 Income
-
The EMI you can take on a Rs 1,00,000 monthly salary is Rs 15,000 (15% of salary)
-
The loan amount that can be managed is Rs 7,22,620
-
Adding the down payment – the total would be Rs 7,70,720
-
A loan is not even necessary at this income level
Important Advice
Before signing up for a loan, make sure that you can afford the repayments without pinching your wallet. Also, be absolutely sure that you have a stable source of income – at least for as long as the loan duration. If everything falls in place, you will be able to enjoy your brand new Aprilia RS 457 without any financial woes.
BikeDekho Says
You should be able to afford the Aprilia RS 457 with a loan if your in-hand monthly salary is at least Rs 50,000. That said, we would advise you to have some extra money set aside to take care of fuel, bike accessories, riding gear, and maintenance costs. Aprilia motorcycles usually have slightly higher spares and service charges compared to other brands.
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