What Car Should Be Bought at What Income?

[revvhard]

First make all out effort to recover atleast part of 3.5 crores. I am sure such a big fraud would leave lot of traces for police to follow. Regarding the commuting vehicle, bike would be better as he can buy new and can have have lower maintainance and running cost than a car.

He already has a bike for commuting and buying an Alto or a swift 2007 petrol will make him independent and would not need to borrow car everytime or some other opinions by you all.

 

[ChequeMate]

I am planning to get my car in 2018, Tata Tigor XZ(O) which have been my dream car. Not a day goes by when I don't dream of owning it.

My monthly income in ~20k and its a Govt. Job so salary will increase gradually. I am single and live with my parents in a small town with no intention of starting a family anytime soon (I'm 22 yo). We have a business with ~25k monthly income and our family expenditures come mostly from that with just minor (~5k) contributions from me.

I am 100% fixated on getting the Tata Tigor XZ(O) model unless TML releases a limited edition of the Tigor soon. Its what my heart says. But my brain says that I can pay around 1-1.5 lakh on cash and rest I have to arrange via loan and I don't want any financial help from my parents.
So is my purchase financially sound or am I too much living in a daydream? My parents are against purchasing used cars, so I am locked out of that option as well.

 

[Prabhagar]

Its what my heart says. But my brain says that I can pay around 1-1.5 lakh on cash and rest I have to arrange via loan and I don't want any financial help from my parents.
So is my purchase financially sound or am I too much living in a daydream? My parents are against purchasing used cars, so I am locked out of that option as well.

Why note take a loan from parents and pay it back to them every month? You can avoid shelling out unnecessary interests to bank this way as.

 

[ChequeMate]

Why note take a loan from parents and pay it back to them every month? You can avoid shelling out unnecessary interests to bank this way as.

Well I don't think they will be able to shell out enough money, my dad is you know the typical businessman who keeps the money rolling inside the business, so not a lot of free cash is kept in the bank. At best I can expect around 1 lakh from him so I still need to arrange for the rest via loans.

 

[Prabhagar]

In that case, your initial thoughts of not depending on parents makes more sense. Try to get your loans from a PSU bank which does not charge you for pre-closure or bulk payments. And by the way,
you know your finances better than many at your age group.

 

[kkn13]

I am planning to get my car in 2018, Tata Tigor XZ(O) which have been my dream car. Not a day goes by when I don't dream of owning it.

My monthly income in ~20k and its a Govt. Job so salary will increase gradually. I am single and live with my parents in a small town with no intention of starting a family anytime soon (I'm 22 yo). We have a business with ~25k monthly income and our family expenditures come mostly from that with just minor (~5k) contributions from me.

I am 100% fixated on getting the Tata Tigor XZ(O) model unless TML releases a limited edition of the Tigor soon. Its what my heart says. But my brain says that I can pay around 1-1.5 lakh on cash and rest I have to arrange via loan and I don't want any financial help from my parents.
So is my purchase financially sound or am I too much living in a daydream? My parents are against purchasing used cars, so I am locked out of that option as well.

Im also a millenial with a job and family business
Id say try making investments and savings for future before splurging on a depreciating asset such as a car especially one from Tata (read- resale)

I see a trend in millenials in Mumbai too who take cars of 50% of their salary in EMI but the issue starts when unforseen maintenance, expenditure or loss of job occurs and youll be stuck paying EMI using your parents money

Im not saying such a scenario will occur but heart to heart, Id say wait a couple of years, analyze job stability, salary increases, trends etc and then purchase a car

Thats why Ive been investing in various FDs, mutual funds etc over the past few years

 

[ChequeMate]

In that case, your initial thoughts of not depending on parents makes more sense. Try to get your loans from a PSU bank which does not charge you for pre-closure or bulk payments. And by the way,
you know your finances better than many at your age group.

I have been in contact with SBI branch in my town but they are asking for a min of 25k per month salary to be eligible for loan, don't know if thats the case with other PSUs.

Im also a millenial with a job and family business
Id say try making investments and savings for future before splurging on a depreciating asset such as a car especially one from Tata (read- resale)

I see a trend in millenials in Mumbai too who take cars of 50% of their salary in EMI but the issue starts when unforseen maintenance, expenditure or loss of job occurs and youll be stuck paying EMI using your parents money

Im not saying such a scenario will occur but heart to heart, Id say wait a couple of years, analyze job stability, salary increases, trends etc and then purchase a car

Thats why Ive been investing in various FDs, mutual funds etc over the past few years

Well, I am a State Govt. Employee so I am not worried about the job stability or salary increments. But yeah, by going the loan route I have to be fully focused on paying the EMIs and missing out on savings, investments and any big purchases, also somewhat dependent on my parents as well.

 

[SachinOnTop]

...
I am single and live with my parents in a small town with no intention of starting a family anytime soon (I'm 22 yo). We have a business with ~25k monthly income and our family expenditures come mostly from that with just minor (~5k) contributions from me.
...

I'd suggest to prioritize your requirements. It seems you're mature enough to distinguish between desires and needs.
IF that Tigor falls in former category, postpone buying it at this crucial juncture of life. You need to save a lot of money for starting a family. A lot!

If you can continue managing yourself the way you're doing right now, it'll be easier for you to pump yourself higher to next phase of life.

And whenever your petrol fed head spins you in a tizzy, go out and satiate your hunger with numerous self-drive options available in almost all cities of India.
Calculate your requirement and then if it works out well, do not restrict yourself to one car!

 

[researcher]

Hello -
My take home salary, after all deductions, is Rs 2.55 lakh per month. My other incomes, post tax deduction, add up to Rs 48 thousand per month. What car(s) I can buy in my income range? I have no other loan and I stay in my own condo in Kolkata.

 

[Akash1886]

Hello -
My take home salary, after all deductions, is Rs 2.55 lakh per month. My other incomes, post tax deduction, add up to Rs 48 thousand per month. What car(s) I can buy in my income range? I have no other loan and I stay in my own condo in Kolkata.

Depending on if you are interested in getting a car financed then options are quite a lot. In financing, based on the CIBIL rating you can get upto 85-90% of Ex-Showroom amount financed. In few rear cases even 100% of Ex-Showroom price can be financed and some banks even finance the 85-90% of on-road cost. Also, it depends what's the price bracket / segment you are looking at.

Regards

Akash

 

[vijay_968]

Hello -
My take home salary, after all deductions, is Rs 2.55 lakh per month. My other incomes, post tax deduction, add up to Rs 48 thousand per month. What car(s) I can buy in my income range? I have no other loan and I stay in my own condo in Kolkata.

As you have ZERO liabilities, Price of Car can be "24 (or 36 months) x half of your monthly Salary = Rs 36 Lakhs to Rs. 54 Lakhs". This is my "back of the hand" equation. Check which Car within this range impresses you.

 

[SilverEyez]

Hello -
My take home salary, after all deductions, is Rs 2.55 lakh per month. My other incomes, post tax deduction, add up to Rs 48 thousand per month. What car(s) I can buy in my income range? I have no other loan and I stay in my own condo in Kolkata.

Hi RESEARCHER,
At your level, you can select any car from any segment.
You can buy the top-end versions of any car from the D segment on full cash if you wish, or else if you wish to take a loan you can select any car from the Luxury segments. I dont think there is any dream car beyond your reach.
please dont mind,but your location says New Delhi and you have a condo in Kolkata?

 

[SachinOnTop]

Hello -
My take home salary, after all deductions, is Rs 2.55 lakh per month. My other incomes, post tax deduction, add up to Rs 48 thousand per month. What car(s) I can buy in my income range? I have no other loan and I stay in my own condo in Kolkata.

My personal view is that a person can easily own and maintain a car equivalent to his 6-months salary/savings post all deductions/expenses.
In your case, the healthy 36LPA post all minuses can allow you to pick and maintain a car with on-road price of approx 20Ls.
Anything over and above will ask for a li'l stretch. That's my opinion.

 

[kkn13]

My personal view is that a person can easily own and maintain a car equivalent to his 6-months salary/savings post all deductions/expenses.
In your case, the healthy 36LPA post all minuses can allow you to pick and maintain a car with on-road price of approx 20Ls.
Anything over and above will ask for a li'l stretch. That's my opinion.

I second this!
Often unforseen circumstances can add to maintenance costs , part changes or even life situations such as some urgent expenses or if between jobs etc
Some amount of saving is required and just because you can afford a 50L car doesnt mean you should

20-25L is a good range and has a healthy selection of vfm cars that can put upto 50L car on a run for their money and you have 20-30L savings left in your pocket for other expenses/ contingency

 

[Nimu]

I am planning to get my car in 2018, Tata Tigor XZ(O) which have been my dream car. Not a day goes by when I don't dream of owning it.

My monthly income in ~20k and its a Govt. Job so salary will increase gradually. I am single and live with my parents in a small town with no intention of starting a family anytime soon (I'm 22 yo). We have a business with ~25k monthly income and our family expenditures come mostly from that with just minor (~5k) contributions from me.

I am 100% fixated on getting the Tata Tigor XZ(O) model unless TML releases a limited edition of the Tigor soon. Its what my heart says. But my brain says that I can pay around 1-1.5 lakh on cash and rest I have to arrange via loan and I don't want any financial help from my parents.
So is my purchase financially sound or am I too much living in a daydream? My parents are against purchasing used cars, so I am locked out of that option as well.

I think its the right time to go for it, "ab anhi to kab", owing a car at this age will bring up more maturity and money management in you. share the pics once you buy.