The unique combination of tax rationalization, inventory clearances, and lower interest rates could save you lakhs. But don't let attractive discounts derail your household budget.
The unique combination of tax rationalization, inventory clearances, and lower interest rates could save you lakhs. But don't let attractive discounts derail your household budget.
We're at the close of the year, and the festive mood is unmistakable. This season has felt especially buoyant, thanks to the goods and services tax (GST) rate rationalization to boost consumption. Even big-ticket purchases, such as cars, saw bumper sales after the GST on small cars and two-wheelers was cut from 28% to 18%, bringing meaningful relief to mass-market buyers.
As we head into the final stretch of 2025, another factor is boosting demand: year-end inventory clearances. Automakers typically roll out generous discounts in December because vehicles sold in January carry the "2025 model" tag, which can hurt the resale value. That means cars with 2025 manufacturing year are now being offered with especially attractive discounts. Combined with the GST-driven price drop, this has created one of the most compelling car-buying windows in recent years. The recent rate cuts by the Reserve Bank of India (RBI) could further reduce costs as it makes car loans cheaper.
Picture this: discounts on popular hatchbacks can go up to ₹70,000, while mid-size SUVs—often the biggest beneficiaries of year-end push strategies—can offer discounts as high as ₹3.5 lakh. In this story, Ashwin Moorthy walks readers through how this unique mix of tax cuts and stock-clearance deals has created a consumer-friendly moment to buy a car.
But tempting as the deals are, don't let them derail your household budget. Tune out the noise and start with a simple needs analysis. If a hatchback meets your requirements, grab the best deal you can in that segment. Don't feel compelled to upgrade just because the discounts look irresistible. Drivability, usage, and family needs should still sit at the heart of your purchase decision.
When it comes to household spending, a new expense head is steadily gaining prominence: pet care. As more families bring pets home, an entire ecosystem of products and services has emerged. From food and beds to clothes, toys and grooming tools. Costs are rising too, as households move beyond essential expenses like vaccinations and basic food to more discretionary items. But how much should you realistically budget for? In this story, Anagh Pal speaks to pet parents to understand the true cost of pet ownership and how families can manage these expenses without straining their household budgets.
Staying with the theme of household budgeting, here's another insightful read on a Bengaluru couple that pulled off a budget international New Year vacation!! This couple used reward points, air miles, advance planning and clever travel hacks for a budget New Year's trip to Oman. Their experience shows that, with smart preparation, ringing in the New Year abroad doesn't have to be prohibitively expensive. Shipra Singh spoke to the couple to bring you their strategy.
And finally, Shefali Anand offers an insightful piece on big-ticket expenses that you can't escape. Think of a termite infestation, an urgent car repair not covered by insurance, a pet's medical situation that goes beyond routine visit, or even the cost of repainting and restoring your house after a tenant moves out. These expenses typically don't fit into your emergency fund, which is intended for sudden, unexpected events such as job loss or major medical crises. Instead, they call for a separate reserve fund designed specifically for large, irregular outflows that could temporarily disturb the household budget. The story outlines a practical strategy to build this reserve, bearing in mind that, unlike an emergency fund, these expenses often come with some warning and can be planned for.
In the investment space this week, we focused on the depreciating rupee and why it makes overseas investing more attractive. With the rupee slipping to a record low at ₹90 against the dollar, the need to hedge portfolios against currency risk has resurfaced. Global exposure can be beneficial in such periods, as a weakening rupee boosts the value of returns earned abroad. However, mutual funds remain constrained by overseas investment limits, and international ETFs continue to trade at premiums on domestic exchanges. Jash Kriplani breaks down the limited but viable options available today, including investing through foreign brokers, global mutual funds, and feeder funds.
But don't go overboard, the prudent step is to follow an asset allocation strategy and stay within the limit. Financial advisors recommend a 10-30% global allocation built gradually to avoid timing the market.
And with the latest RBI cutting the repo rate further by 25 basis points—the fourth rate cut in 2025, bringing the total reduction to 125bps—home loan borrowers can end the year with some cheer. Each rate cut lowers the interest burden over the loan tenure. According to this story by Shipra Singh, prospective borrowers should wait at least one month to benefit from the revised rates.
It's important to keep in mind that when banks revise interest rates in line with changes in key policy rates, their default option is to adjust the loan tenure. So, if you prefer lower EMIs to free up your disposable income, you will need to ask the bank to reduce your EMIs.
Deepti Bhaskaran is editor, Mint Money, with close to two decades of experience as a personal finance journalist. Her work reflects a strong focus on financial literacy, consumer protection and practical money management.