What Car Should Be Bought at What Income?

[ERTIGA_ZMR]

yes I'm working in a PSU.

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Hey you are working in PSU then why to worry , please go ahead and buy the car of your choice.

 

[adi231189]

This thread is simply amazing...and just tell everyone that India still lacks when it comes to financial planning (no offence). Since i am myself currently looking for Fiat Punto which is costing me 6.9L OTR in delhi i am myself thinking whether i will be able to maintain and buy it without IF's and But's. I currently earn about 40K and i have a Education loan of 5k/month.

While i can manage to pay the EMI of 11K+ easily but still i am getting second thoughts. Why i am even considering currently the purchase is because my job offers me appraisal every 6months and i will be able to reduce my loan amount rather quickly.

I am not yet married and just 22 :D...so that gives a advantage as well, but i really would like your views on whether i am doing something wrong while currently considering the Punto Diesel at all?

 

[TSIVipul]

^^Unmarried guy means you can go a segment above what is mentioned in the list.

You are paying 5k education loan,that means you have a monthly earning of 35k.
And since you feel that you can easily pay upto 11k EMI,then why not move ahead?Just go on buddy,you can take good financial risks before your marriage.

And yes,+100 on the financial planning point.Actually what I have noticed is that people don't understand the exact difference between budget-planning and financial-planning and hence this results in poor financial planning.
For further steps on financing the car you can visit this thread:-
http://www.theautomotiveindia.com/forums/automotive-library/7623-buying-your-car-finance-complete-guide.html

 

[brandoo]

This thread is simply amazing...and just tell everyone that India still lacks when it comes to financial planning (no offence). Since i am myself currently looking for Fiat Punto which is costing me 6.9L OTR in delhi i am myself thinking whether i will be able to maintain.
so that gives a advantage as well, but i really would like your views on whether i am doing something wrong while currently considering the Punto Diesel at all?

Punto is very good vehicle to own. What is your monthly running. If it is more than 700 kms and intend to keep car for 5 or more years, you should go for diesel. For car, try and pay as much as upfront and keep EMI's as low as possible, lets say within 10000, (approximately 4-4.5 lakhs). You can enjoy you money with your car.


Though off topic but Start one PPF account in any PSU bank (I am not in favour of private ones), deposit some amount on monthly basis. This is old school suggestion but very lucrative as its tax free on maturity, saves on tax under 80 c.
Try and take one risk cover policy of around 50 lakhs without any saving component. You will not get back anything but will be covered.

 

[ParC]

@TSI:As per the figures you mentioned I fell in the category of Manza,Dezire etc but now I am going for any car which fells in the 1.5-2 lac income bracket.
I am having financial support from my father and my brother,so is it advisable to go for any car upto 15 lakh or should I limit myself upto 10 lakh only?

 

[rsrs_in]

Support from relatives would mean one may not have to pay back - but assuming one has to (which is logical), then it will make sense to go for an expense which is within one's means. As a disipline it helps in the long run.

 

[ParC]

You are right Rsrs_in I understood your point,but yesterday was raksha bandhan and my brother gifted me some amount for booking the car.After which I have some of my own savings and hence I will take a net loan of just 3-4 lakh for the car.

 

[vaibhav]

Car gift in rakshabandhan
Lucky you

 

[dr_sachin]

@PARC
I think you must go ahead if you have sound backup(financial+emotional) for you.Trust me your father and brother will be more than happy just to see you happy with car of your dream.If you are sensible than you will know and you will unknowingly calculate whats the best suitable for you all,there will be no use of any advice from others,because this is what indian families(family values,sanskar) are all about.Each and everyone thinks for other members too.
I guess you get my point.

 

[ParC]

I got your point dr_sachin.Even I am also planning to buy the car which will be accepted by all members of my family happily.Especially when my father and brother are ready to pay the amount I ask them to pay for any car on which I put my hand.

@Vaibhav:Its not the car,but just the booking amount,a cheque of INR 51,000.

 

[Username]

I didn't read all of the thread, but here's a query:

My cousin earns about 50k per month, and has no liabilities/loans on him. He isn't married, and everyone in family is working. What cars should he look at? He isn't going to take loans, has money already for car, just maintenance is problem. :P

 

[chayan]

I didn't read all of the thread, but here's a query:

My cousin earns about 50k per month, and has no liabilities/loans on him. He isn't married, and everyone in family is working. What cars should he look at? He isn't going to take loans, has money already for car, just maintenance is problem. :P

He should look at a car that fulfils his requirements. His salary is not a concern here as you say he already has money for the car. Then I would say would depend on how much money he wishes to spend.

 

[gns_blr]

Wonderfull thread, I think this thread was created an year back when value of currency was about 10% more than today's value. I was in the bracket of punto, swift etc.. if I purchased it last year. Now I can aford a wagonR as per the calculations the thread start with, which I am having now.
My heart is up for a BRIO which is beyond my monthly income as I hold a Homeloan repayment about 26% of my montly Salary. After deducting my EMI, I am falling into the class who can afford an Alto now. But I have a wagonR with me now and still trying to go for a BRIO
Listen to Heart or live up the present?

 

[Username]

He should look at a car that fulfils his requirements. His salary is not a concern here as you say he already has money for the car. Then I would say would depend on how much money he wishes to spend.

He can even get an Audi, the problem is how the car is going to bug him with its maintenance charges

 

[Gurrala74]

Good thread Vipul !!

After reading all the pages, most of the experiences are same and most of the cases shows that people have opted more than what they want.

So keeping all the calculation aside, I always feel and follow one thing whenever I buy either a car or something else

Buy just according to your need and not according to your desire !! believe me you will be very very comfortable in life !!