What Car Should Be Bought at What Income?

[TSIVipul]

^^
Haha,this is what differentiates between the ones who just need the things to show off and the ones who buy the things for their needs.

 

[billion$kid]

The rule of thump is that the price of the car shouldn't be more than his/her family's annual income. Assets too play a huge role here. And another factor that is worth mentioning is the 'outlook' of the customer. If he/she thinks that he/she needs a big car; not a big house, then he/she can go ahead and buy one. You cant set the limits to one's wish based on income.

 

[dr_sachin]

i believe it is safe to put atleast 10% of your cars price handy at all times in your account,and the emi should never be more than 10-15% of your take home salary.
one more thing i should say never ever buy a car with the financial help of any other person,because KAAM TO KUCH DER KA HOTA HAI PAR EHSAAN ZINDAGI BHAR KA HOTA HAI.

 

[madaneeraj]

Car buying decision making involves both heart and mind. I would say tussle between emotional and practical forces. Same income level guys have cars ranging from Alto to Laura,Wagon R to Scorpio. When emotional forces took over a person takes a radical decision.
I think your income level should be refered to keep an upper level on the overall spend. For me I have decided to keep a cap of 50%, so a BMW 320D once I reach 60 Lacs . Distant but achievable.

 

[threeace777]

bhai logon sabse best vaibhav comment
wife eating pizzaa tv add influencing this generation to plunge into never lasting ditch of spending

 

[skp_mumbai]

nice discussion Sir..I'm a newbie here.I fall in 50K income group..But got a new house recently.hence house loan deduction is around 22k.I'm married with son of 4 yrs age. Currently I use M800 (2005 model) bought from True value in 2007. Going to shift at Kolkata by end of this year; thinking of getting a new car there. My qstn:

1. Should I go for car at all?
2. If yes, then what will be better Alto K10 or Wagon-R (prefer tall boy one..as I'm 6'2'') or should I wait for new Alto800

Please suggest..
BTW: I'm eligible for 3L loan from my Co. ( EMI will be around 4K)

 

[ERTIGA_ZMR]

nice discussion Sir..I'm a newbie here.I fall in 50K income group..But got a new house recently.hence house loan deduction is around 22k.I'm married with son of 4 yrs age. Currently I use M800 (2005 model) bought from True value in 2007. Going to shift at Kolkata by end of this year; thinking of getting a new car there. My qstn:

1. Should I go for car at all?
2. If yes, then what will be better Alto K10 or Wagon-R (prefer tall boy one..as I'm 6'2'') or should I wait for new Alto800

Please suggest..
BTW: I'm eligible for 3L loan from my Co. ( EMI will be around 4K)

If I put myself at your place then , I would like to reduce the outstanding loan principal as already having M800 which meets the current demand of commute. Then in couple of years, will go for a new car.

Just wait for sometime you will get plenty of option even in diesel category (Maruti is planning to launch a 800 cc Diesel car which will have mileage as 30KMPL). Till then try to be happy with M800. This is my personal opinion.
If money is there then at any time we can buy what we want.

 

[skp_mumbai]

Thanx Sir. But my problem is that it will be really difficult to transfer my old vehicle to Kolkata. Even all my friends are suggesting to sell it in Mumbai itself, as new registration, Road tax etc. will be more or same as my vehicle's current value (2005 Second hand purchase). Will it be wise decision to get it transferred ?

Till now I am quite happy with my M800, with the rising petrol price that is a driver's delight.

 

[ERTIGA_ZMR]

Thanx Sir. But my problem is that it will be really difficult to transfer my old vehicle to Kolkata. Even all my friends are suggesting to sell it in Mumbai itself, as new registration, Road tax etc. will be more or same as my vehicle's current value (2005 Second hand purchase). Will it be wise decision to get it transferred ?

Till now I am quite happy with my M800, with the rising petrol price that is a driver's delight.

This is really tricky question for me to answer, wait for Vipul suggestion. He is a kind of financial advisor at TAI :P

 

[TSIVipul]

nice discussion Sir..I'm a newbie here.I fall in 50K income group..But got a new house recently.hence house loan deduction is around 22k.I'm married with son of 4 yrs age. Currently I use M800 (2005 model) bought from True value in 2007. Going to shift at Kolkata by end of this year; thinking of getting a new car there. My qstn:

Buddy you are in the 50K group and after deducing your house loan and all the expenses I think you may be having at most 10-15k at the end of the month.

1. Should I go for car at all?

Why not?Any day you can buy one.

2. If yes, then what will be better Alto K10 or Wagon-R (prefer tall boy one..as I'm 6'2'') or should I wait for new Alto800

Please suggest..
BTW: I'm eligible for 3L loan from my Co. ( EMI will be around 4K)

Buddy you can easily go for an Alto K10 or Wagon-R,whichever you feel better.In fact now I'd recommend you to go for Wagon-R because you like Wagon-R and you can easily maintain one considering your income.Else now if you go for K10 then in future you are going to regret this decision.

Thanx Sir. But my problem is that it will be really difficult to transfer my old vehicle to Kolkata. Even all my friends are suggesting to sell it in Mumbai itself, as new registration, Road tax etc. will be more or same as my vehicle's current value (2005 Second hand purchase). Will it be wise decision to get it transferred ?

Instead of getting the car transferred.I'd recommend you to sell it there itself and get the new car now.
BTW,as much I know one needs not to RTO transfer their personal vehicles in India.You can buy it from Assam and drive it in Mumbai,nobody is going to speak a word to you,you are the owner of the car and car needs to be on your name.
In other words,you can take the car safely with you,no issues at all,no need to do any RTO transfers.Only you need to have the car transferred on your name in case of a second hand buy,which I think may have been already done.
Rest for more legal queries I recommend you to consult JALEX.He can completely solve this query as he is in the profession of RTO affairs itself.

Till now I am quite happy with my M800, with the rising petrol price that is a driver's delight.

No issues my dear,just take the car.And if you want to sell then do it.You have 'laddoos' in both of your hands,eat whichever you want to.

This is really tricky question for me to answer, wait for Vipul suggestion. He is a kind of financial advisor at TAI :P

Vipul-Financial advisor!!!When and how?
Still,thanks buddy..

 

[skp_mumbai]

Thanx Vipul for your wise suggestion. It helped me a lot to clear my ever confused mind. Initially I was obsessed with Figo..But taking into consideration of Ford's A.S.S & maintenance cost; tried to use the head rather than the heart hence zeroed to Wagon-R.

Your support has given me immense confidence.Now have to decide between Lxi or Vxi.

OT: Only thing I'm waiting for the transfer order to Kol..U know there are some drawbacks in working with PSUs.

 

[TSIVipul]

Thanx Vipul for your wise suggestion. It helped me a lot to clear my ever confused mind. Initially I was obsessed with Figo..But taking into consideration of Ford's A.S.S & maintenance cost; tried to use the head rather than the heart hence zeroed to Wagon-R.

Congrats for shortlisting Wagon R buddy.
No doubt,the Wagon R will keep you happy for next 4-5 years.After that you will feel the urge to get an another car and then Wagon R will again help you with its fantastic resale value.

Your support has given me immense confidence.Now have to decide between Lxi or Vxi.

If you are planning to get the one with ABS,which I strictly recommend then you must go for VXi only and if you feel that you don't need ABS then also i'd recommend VXi until you need factory fitted CNG/LPG kit which is available only in LXi.
In other words,if you are taking loan an don't need the LPG/CNG kit then I recommend you go for VXi with the safety of ABS.The 30,000 you spend on ABS give you priceless feature called safety.

OT: Only thing I'm waiting for the transfer order to Kol..U know there are some drawbacks in working with PSUs.

Nothing new for sarkari karmchaaris,you will have to get relieved by applying some pressure.
BTW,if you work for a PSU then you can easily go for the car even with ABS because any small loan will be no boundation for you at all.

 

[rekharam]

BTW,as much I know one needs not to RTO transfer their personal vehicles in India.You can buy it from Assam and drive it in Mumbai,nobody is going to speak a word to you,you are the owner of the car and car needs to be on your name.
In other words,you can take the car safely with you,no issues at all,no need to do any RTO transfers.Only you need to have the car transferred on your name in case of a second hand buy,which I think may have been already done.

I guess, but we need to pay road tax in the other states. We can keep the same registration, but definitely need to pay the road tax. Correct me if I'm wrong, Vibhor?

 

[skp_mumbai]

The 30,000 you spend on ABS give you priceless feature called safety.

Thanks for your advice buddy

BTW,if you work for a PSU then you can easily go for the car even with ABS because any small loan will be no boundation for you at all.

yes I'm working in a PSU.

During my last visit to Kolkata found that a new MS showroom is opening in our area very soon Hope will get a good bargain from the new dealer.

 

[singh890]

Yes you have to pay registration of the vehicle if you take it to another state. And i am pretty sure about this, how:

Back in 2004 when i bought my graptor and got admission in Pune for B.com. I decided to take my graptor with me. And there i was stopped many times at the check posts, signals and was told to get an N.O.C, since my bike was registered in UP and had a UP no. So i got the N.O.C. Again they stopped me and gave me a challan.
I went to the RTO and talked to a senior guy and he said that if i need to use my bike in Pune then i will have to pay Pune registration and tax. N.O.C won't work.

So i took my bike back to UP and got a second hand in Pune.