What Car Should Be Bought at What Income?

[sumesh]

Does it make sense for me to buy a Car or better to stick to Taxis.

Hi all,

This is my first post on this wonderful forum. I have been going through the reviews sections and the suggestions of members here are really helpful to novices like me. I'm in a bit of a fix and hope members would give me some valuable suggestions & advice. Here is my dilemma. I Work in delhi and my Wife stays in Chennai. I travel to chennai every 2 to 3 months for 10 days. I don't have a car or 2 wheeler back in chennai so i end up hiring taxis which costs a lot of money since i make a few outstation trips during my stay. here are my questions :

1) Used car. I have been going through Chennai classifieds and there are lot's of used Santros and altos going for less than 1.5 lacs. The only worry buying a Used car is the fear of breakdown & getting stuck in middle of nowhere in an unknown state. Since second hand car prices are low in delhi i even though about picking up a used Honda city from Delhi and using it in Chennai but im worried about the cops hassle due to road tax issues.

2) New car: New car does make sense however the running would not be more than 3 to 4 thousands Kms a year. I don't know what be the ownership cost of new car compared to hiring taxis for all these Kms. I have even asked wifey to learn driving so that she can use the car occasionally. she does not need the car for daily commuting,

3) The last time i drove a car was back in 2004 during driving school. I would have driven a car for not more than 300 kms in my lifetime. I do have a license though. Would i have to start all over again by going back to driving school?

I would really appreciate some advises/ suggestions.
Sumesh

 

[ERTIGA_ZMR]

Re: Does it make sense for me to buy a Car or better to stick to Taxis.

Hi all,

This is my first post on this wonderful forum. I have been going through the reviews sections and the suggestions of members here are really helpful to novices like me. I'm in a bit of a fix and hope members would give me some valuable suggestions & advice. Here is my dilemma. I Work in delhi and my Wife stays in Chennai. I travel to chennai every 2 to 3 months for 10 days. I don't have a car or 2 wheeler back in chennai so i end up hiring taxis which costs a lot of money since i make a few outstation trips during my stay. here are my questions :

1) Used car. I have been going through Chennai classifieds and there are lot's of used Santros and altos going for less than 1.5 lacs. The only worry buying a Used car is the fear of breakdown & getting stuck in middle of nowhere in an unknown state. Since second hand car prices are low in delhi i even though about picking up a used Honda city from Delhi and using it in Chennai but im worried about the cops hassle due to road tax issues.

2) New car: New car does make sense however the running would not be more than 3 to 4 thousands Kms a year. I don't know what be the ownership cost of new car compared to hiring taxis for all these Kms. I have even asked wifey to learn driving so that she can use the car occasionally. she does not need the car for daily commuting,

3) The last time i drove a car was back in 2004 during driving school. I would have driven a car for not more than 300 kms in my lifetime. I do have a license though. Would i have to start all over again by going back to driving school?

I would really appreciate some advises/ suggestions.
Sumesh

In this case, go for a fairly used Nano, it will be round 1.5 lakhs and also better fuel economy.Buying a new Nano Twist would not be a bad idea incase your wife would like to drive.

 

[anshuman8]

This is my first post on this wonderful forum. I have been going through the reviews sections and the suggestions of members here are really helpful to novices like me. I'm in a bit of a fix and hope members would give me some valuable suggestions & advice. Here is my dilemma. I Work in delhi and my Wife stays in Chennai. I travel to chennai every 2 to 3 months for 10 days. I don't have a car or 2 wheeler back in chennai so i end up hiring taxis which costs a lot of money since i make a few outstation trips during my stay. here are my questions :

1) Used car. I have been going through Chennai classifieds and there are lot's of used Santros and altos going for less than 1.5 lacs. The only worry buying a Used car is the fear of breakdown & getting stuck in middle of nowhere in an unknown state. Since second hand car prices are low in delhi i even though about picking up a used Honda city from Delhi and using it in Chennai but im worried about the cops hassle due to road tax issues.

In this case, go for a fairly used Nano, it will be round 1.5 lakhs and also better fuel economy.Buying a new Nano Twist would not be a bad idea incase your wife would like to drive.

Not sure this in right thread to put your question, but -

a. Used car makes lot of sense (petrol only)

b. Used Maruti car makes sense (Alto/Wagon R/Swift)

c. If you are ok with TATA you can look for a Nano used (2012 and above only). Recently we bought one.

 

[sumesh]

Thanks for the response guys. Thread was created as a new post somewhere else but it was moved here by admin.

 

[IndicaDLS2002]

Such a lot of discussion & then we see such articles below like this one from ET.

How much should you spend on a car - The Economic Times

Its oversimplifying the whole issue/question but in case it helps.

 

[shrid]

Great thread.My father falls into the >60 bracket,but gets a EMI reimbursement from his employer,15k/month,and I am nagging him to buy us a Polo GT TDI.Will this be sensible?Because if I buy the car,and then maintenance costs go up, I will be held responsible .But I really want this car,he gets one every four years,it will be 8.5 lakh Rupees OTR in Sept.,minus 3.25 lakhs,3 lakh for my existing Beat TCDi,and he gets 50K for accessories,and some accessories will make it 25k. help me?Thanks!

 

[Releesh]

^^ In case your running is not much you dont have to worry about maintenance expenses because the service interval for polo is 1year/15 Kkm.

To make a decision on this, You should think about your other expenses also. If you felt you spent more on this car after you bought, you can extend the usuage span to another one or more year. So it could be neutralise i guess.

 

[TSIVipul]

Great thread.My father falls into the >60 bracket,but gets a EMI reimbursement from his employer,15k/month,and I am nagging him to buy us a Polo GT TDI.Will this be sensible?Because if I buy the car,and then maintenance costs go up, I will be held responsible .But I really want this car,he gets one every four years,it will be 8.5 lakh Rupees OTR in Sept.,minus 3.25 lakhs,3 lakh for my existing Beat TCDi,and he gets 50K for accessories,and some accessories will make it 25k. help me?Thanks!

Since you get EMI reimbursements then it makes for anything higher than even some higher brackets.
You can safely go with the car - rest Releesh has already solved your query.

 

[shrid]

Since you get EMI reimbursements then it makes for anything higher than even some higher brackets.
You can safely go with the car - rest Releesh has already solved your query.

Maybe not- My dad is about to retire after 6 years..

Great article,and thanks for both it and for your reply!

Hi all,

This is my first post on this wonderful forum. I have been going through the reviews sections and the suggestions of members here are really helpful to novices like me. I'm in a bit of a fix and hope members would give me some valuable suggestions & advice. Here is my dilemma. I Work in delhi and my Wife stays in Chennai. I travel to chennai every 2 to 3 months for 10 days. I don't have a car or 2 wheeler back in chennai so i end up hiring taxis which costs a lot of money since i make a few outstation trips during my stay.

Welcome to TAI!

Answers:If your wife does not have a car,get her one.And yes,don't say she does not know driving;Women are as human as us men,and can learn driving.If she does own one,but you need to use it when she is at work or away from house,than I would recommend getting a used car.But yes,cars have to be maintained,so 2-3 months means the car will be parked for a long time.That also affects resale,but no parking it too long is bad for components too.

If you are comfortable with two wheels,how about an H-D or R-E?
The fact remains,that in a crowded capital like Chennai,a two-wheeler is faster.Good for both you and wifey. About the driving license,renewal duration is dynamic.My 18-year old brother will have to renew it 15 years from today,while my 52-year old dad's licence is expired only after 5 years.He will be renewing it.But after your licence is expired,not valid, you have to re-apply,get a learner's licence,give a driving test (Nobody does in our country,just a written/digital test is taken),and acquire a permanent licence. Best of luck!

Disclaimer: @TSIVipul,maybe I need not say this but really do not intend to hijack this thread from you.Just answered a question...!

 

[jettasam]

Come on, this is thread is ridiculous.
If you have a will, you have a way and that's it.
No offence.

 

[TSIVipul]

If you have a will, you have a way and that's it.
No offence.

Very valid point raised. Now let me think how 25-30k a month guys can actually buy a Honda City(because they have the will to buy one 'right now') at their current salary where they have to pay house rent and various other expenses(But c'mon man, why can't they buy one? They have the will and hence they will make the way - but how?)

3 lac down payment(I am wondering how long it has taken to same this money at 25-30k a month)
17k a month EMI for 8 lac loan
This makes 13k saving.
Now fuel, yearly insurance, house rent and various other expenses - I guess 13k a month will be enough for it all. Even if not then when the friends will prove their friendship?

Point is that - you bought a Jetta when you yourself had the way(enough income/savings/investments) to satisfy all your needs as well as some of your desires) to satisfy your will(Jetta).

 

[ERTIGA_ZMR]

Come on, this is thread is ridiculous.
If you have a will, you have a way and that's it.
No offence.

We should be always cautious when to listen to heart and when to mind. A will itself is not enough, I have will to drive Audi but it does not make sense to invest 30 Lakhs just to satisfy my will on a depreciating asset. Rather I would be happy to invest 50 Lakhs with struggle to get a plot or flat for my family.

It is good to follow heart but life is not always bollywood flick.

 

[dhoom9]

Come on, this is thread is ridiculous.
If you have a will, you have a way and that's it.
No offence.

In my 20 years of practice, I had witnessed that previously, service class people or middle class people were planning their expenses as per their income, but now expenses are fixed, & if they higher than income, people try to increase income rather than decrease expenses. This results overtime, corruption, false deeds, thefts - in short, increased stress & decreased relaxation, satisfaction in life. One is always on run to complete his wish list, which ultimately is endless. New wishes are born before olds ones are satisfied. If you have a will, you have a way and that's it thinking is OK provided it is leading to relaxed & satisfied life, not if it is just to satisfy some purchase list wish.

We should be always cautious when to listen to heart and when to mind. A will itself is not enough, I have will to drive Audi but it does not make sense to invest 30 Lakhs just to satisfy my will on a depreciating asset. Rather I would be happy to invest 50 Lakhs with struggle to get a plot or flat for my family.

It is good to follow heart but life is not always bollywood flick.

In other words, one should venture out for dream car, once he had done full provision for "Roti, Kapada aur Makaan" of family + advanced needs like child education, provisional health expenses.

In US I had seen, if person is having car with EMI say "X" amount, get a salary hike of 1K, then he will go out, sell his existent car & buy car with "X+1K" amount. Sheer irresponsibility. We are better calculative persons over here.

 

[jettasam]

In my 20 years of practice, I had witnessed that previously, service class people or middle class people were planning their expenses as per their income, but now expenses are fixed, & if they higher than income, people try to increase income rather than decrease expenses. This results overtime, corruption, false deeds, thefts - in short, increased stress & decreased relaxation, satisfaction in life. One is always on run to complete his wish list, which ultimately is endless. New wishes are born before olds ones are satisfied. If you have a will, you have a way and that's it thinking is OK provided it is leading to relaxed & satisfied life, not if it is just to satisfy some purchase list wish.



In other words, one should venture out for dream car, once he had done full provision for "Roti, Kapada aur Makaan" of family + advanced needs like child education, provisional health expenses.

In US I had seen, if person is having car with EMI say "X" amount, get a salary hike of 1K, then he will go out, sell his existent car & buy car with "X+1K" amount. Sheer irresponsibility. We are better calculative persons over here.

As usual, well said dhoom9. Yeah, that's really sheer responsibility in US who highly depend on calculators.

 

[shrid]

You have made a really great article. But, my friend, whose father is a contractor(Monthly income would be about 40k-50k), bought a brand new Swift VDi. do you think what happened to your friend could also happen to mine? He's from UP, and I doubt he is as poor as he looks to be. His house is an unpainted one since it was constructed. But he has an independent banglow. LOL, he looks quite poor, but not so. Just thought of posting this here, nothing special. And if you think I'm jealous, ditch that thought. I own the best car in the world, and definitely better than Swift, IMO.