What Car Should Be Bought at What Income?

[brandoo]

I bought Ecosport Titanium, sold Figo Titanium. ES costed me 10.5 OTR with Uttarakhand registration. No loan, paid in cash.
My monthly income is around 1.8 L but serving 30K emi, 15K for all domestic helps (including driver, Nanny and maid). I could have gone for Duster (would have costed me another 3.5 L on top of ES top variant) but didn't make sense to me and my needs will be fulfilled by ES. Planning to invest in plot (500 yars) in Dehradun, appreciating asset.

Hence I request people not to go over board and invest in depreciating asset. Rather make some sensible choice and invest in land (can be residential or agricultural).

 

[IndicaDLS2002]

Wow. If ES over Duster (both 5 seaters) makes economic sense, then a 9 seater Sumo gold @ 7L INR would be super Value for money?

 

[brandoo]

Wow. If ES over Duster (both 5 seaters) makes economic sense, then a 9 seater Sumo gold @ 7L INR would be super Value for money?

Dude, please read my previous post carefully. I said, ES is perfect for my needs.We are family of three. W.r.t. to VFM, i could have bought Ertiga ZDi full 1.75 L cheaper than ES.

If I start comparison between ES and Duster, it will be OTT.

 

[IndicaDLS2002]

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.

You have posted some very good & relevant points to this thread. IMHO both are extremes I mean if one waits till achieving everything else then maybe one can buy the desired car only after retirement, also the other way of changing cars at the drop of a hat is also reckless & is the other extreme. Buy as per one's genuine need & within safe budget would be the best formula maybe?.

One thing is clear in this thread, most people don't mind stretching their budgets for the car they buy, which is sort of a status symbol all over the world because Very few people one knows in life may have seen where that person lives, but a lot many more than that would definitely know what that person drives.

 

[mitulpomal]

As per my view budgeted car should be bought in full cash. Although this is a depreciation Asset and I think why to pay high EMI's for a depreciation rather then use that EMI's amount to run your car.

 

[hanpolo]

The SBI car loan with overdraft facility is a good instrument to reduce interest liability without losing out on the liquidity. As much as I'd want to buy a car with full cash, at times it just doesn't feel comfortable to commit all in one go.

 

[amiti]

Excellent thought @dhoom9. IMHO, buying a car should be purely dependent on each individual, his lifestyle and needs. It should not enter into greed area. I have seen many friends(forget other people) buying cars to showoff others and how their car is better than others.
I also feel and have practiced, always buy car in cash and not on EMI. As it is not going to give you returns on investment.

 

[rselva]

Strictly speaking everybody can do without a car. In most cases, you can reach your place faster in a bike, public transport or hired taxis without the hassle of driving in maddening traffic. However the ease of moving with friends or family members, in rain or shine, at whatever time and where ever we prefer, is what motivates most of us to buy a 4 wheeler. Once we decide a 4 wheeler, peer pressure forces us to buy not an Alto, but something more refined and decent -depending on the social status. I think the safest brand is which that doesn't cost more than 18 months of your salary , so even if there is house loan problems , sudden medical emergencies etc, you can manage. Sample of cars in uncovered parking lot from our 15th Floor apartment

 

[Prads]

^ a Bit OT but what is an oil tanker doing in your apartment? You guys buy fuel in bulk for the generators or something?
15h floor,i am a bit paranoid to stay that many floors up in India & i see your in Chennai its now a Seismic zone 3 up from zone 2.

 

[rselva]

^ a Bit OT but what is an oil tanker doing in your apartment? You guys buy fuel in bulk for the generators or something?
15h floor,i am a bit paranoid to stay that many floors up in India & i see your in Chennai its now a Seismic zone 3 up from zone 2.

That's one of the water tankers used to supplement our RO system. The buildings in the complex are seismically rated to be safe - not that it means anything in India where you can get certificates on adequate cash payment 15th floor is scenic (on back side) and the natural breeze even on hottest day is sooooo refreshing that you tend not to think about the probability of scurrying down the emergency stairwell.

 

[Mystikal1445]

That's one of the water tankers used to supplement our RO system. The buildings in the complex are seismically rated to be safe - not that it means anything in India where you can get certificates on adequate cash payment 15th floor is scenic (on back side) and the natural breeze even on hottest day is sooooo refreshing that you tend not to think about the probability of scurrying down the emergency stairwell.

I agree with most of the posts.However my 2 cents. I average an income with my wife about 1.5 lakhs per month(plus incentives).I have my own house(thats my mother but its a 2bhk and it suffices) and no outstanding emi's. I still feel or rather practice in buying a pre owned car compared to a new car. I somehow feel that its more VFM than a new car whether bought on cash or loan!. Thats just my view guys.

 

[manish12345]

What about a business person. Who makes turn-over about 1cr per month. With the income of minimum 5 lakhs. In business we can not say actual income. Many ups & downs in business.
Coming to point which car he can go for???

 

[Akash1886]

What about a business person. Who makes turn-over about 1cr per month.
Coming to point which car he can go for???

If the turn over is as high as 1 Cr/month I would say opt for a S-Class Benz and if possible then ask for leasing options too from Mercedes.

Regards

Akash

 

[acechip]

What about a business person. Who makes turn-over about 1cr per month. With the income of minimum 5 lakhs. In business we can not say actual income. Many ups & downs in business.
Coming to point which car he can go for???

Go for the car you like. This topic is completely subjective. AS simple as that. The economic angle gets taken care of by the societal set up that man operates in . There may be perhaps 1 in 500 who will risk buying a Rs 15 lac car on an annual household income of Rs 5 lac.

 

[manish12345]

If the turn over is as high as 1 Cr/month I would say opt for a S-Class Benz and if possible then ask for leasing options too from Mercedes.

Regards

Akash

Then my dad didn't have a merc.
we have a cruze & xuv,linea,figo.
he wants to live very simple. I
like to be very simple too. Sometimes turn-over crosses 3 crores per month in season. Forgot to say we have a Rice factories. We'll supply rice all over india and exports to some countries also.
though my dad's brother had a merc.
He is lower in financial status compared to us. My dad will buy plots & homes. He says cars value will be depreciate but plots & homes?.
For example in 2001 my dad bought a 2 acres land for 5 lakhs Now it's value is some crores!!!. He wants to be simple because he came from low stage. We helps for poor people & donates some money for charities.
:) What amazes me that we didn't had a single emi expect xuv 500 for 2 years. He taken loan because of income tax exemption. I'm proud of my dad:).