What Car Should Be Bought at What Income?

[ss80]

I am not sure if this has been already discussed, but for new car buyers especially first time buyers, beware of the 13th month bill.

Most new cars have 8000kms/ 1year service interval (for oil change etx)
So Assuming this Feb you bought a new car, Next March will be an expensive month for the following reasons:
1. Insurance Renewal
2. 1st detail car service
3. Your regular emi
4. Plan well or this expense might clash with rest of your commitments.

Most entry level hatchbacks are available for EMI of 7000/month
So the 13th month, you will have approx
7000 - EMI
5000 - Car Service
10000- Insurance renewal
3000 - Fuel
--------
Total - 25000/-
Although this is only once a month, the issue is you are used to spend only 10K/month, now the sudden hump in your bills will be tough to tackle.

I personally know a friend who could have gone for a wagonR new (top end) instead preferred to buy only a swift - as it looks better (although he cant afford it), I had advised him of the 13th month issue, which will again repeat on 25th month.

He was used to paying 10K EMI+3K fuel
on 13th month it was - EMI+FUEL+INSURANCE+SERVICE = 33K
That's double of what he can normally afford to spend on a car, ended up swiping credit card & then converting that excess bill to an EMI.

When travelling is not part of your job, when you fuel from your pocket, You have other priorities in life & car is not on top of list - choose wisely.
Buy a car that you can manage easily and keeps you happy for atleast a few years.

There are so many Creta/ Ecosport/ XUV with less than 10k kms on odo for sale, primary reason (as per my conversation with olx sellers etx)
1. I dont use the car that often (I dont see why I need such an expensive ride)
2. I can save on EMI, anyway company offers cab - to & fro (I realised my EMI's are twice of many people's rent)
3. Parking issues = mostly fake
4. Going abroad = If half the owners were really going abroad, you would find no traffic jam in Bangalore.

There's a lot that goes into owning a car, dont go by just EMI & downpayment, if you go 1step higher than what you should ideally buy, be prepared for.

1. Higher Insurance premiums
2. Usually (not always though) higher fuel bills
3. Even simple things like mirrors will cost 8K for new cars (even if you claim insurance, you still got to shell 3K from your pocket)
4. Accessories cost too is high
5. Most new/ 8L - 10L cars run on Synthetic oil, so the oil change alone will land you a 4000bill
6. If you are caught in a Creta for signal jump, do you think the cop lets you go for 100/- ?
7. In case of out of court settlements for major accidents etc, the bigger or costlier the car you onw, the higher the victim's deman/ eventually payout.

 

[AbhisekVerma]

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.

You really have a good taste of cars. Few years back when I was in college, i10 used to be me favourite car and I made my parents buy I really loved it. Then I was almost about to buy Grand i10 as it was again my favourite car but in between came the beautiful Tiago and it became my favourite car and I purchased it in top variant disguise. Always buy what your analysis says the best. Probably for your income Tigor XZO is a bit more expensive but since you don't have the burden of home loans etc. and you're single you may go for it with your own calculations. Don't listen to other about resale etc. as the car itself is priced well and has a high desirability factor which would assure you decent resale. Also if you're planning to own for long duration that factor again doesn't make much sense. I am proud of owning a Tiago and Tigor being even better (in terms of looks, features) is really a desirable car. Its also doing decent numbers. Also cost of owning a Tata is so low, with my 1.2yrs of ownership I have not spent any money except for the oil change believe me.

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 salary is considerably lower than you but then I have a heavy home loan and other expenses along. With the little info you provided the 15-20L bracket seems perfect for you. Going above it is your own risk.

 

[SilverEyez]

I am not sure if this has been already discussed, but for new car buyers especially first time buyers, beware of the 13th month bill.

Most new cars have 8000kms/ 1year service interval (for oil change etx)
So Assuming this Feb you bought a new car, Next March will be an expensive month for the following reasons:
1. Insurance Renewal
2. 1st detail car service
3. Your regular emi
4. Plan well or this expense might clash with rest of your commitments.

Most entry level hatchbacks are available for EMI of 7000/month
So the 13th month, you will have approx
7000 - EMI
5000 - Car Service
10000- Insurance renewal
3000 - Fuel
--------
Total - 25000/-
Although this is only once a month, the issue is you are used to spend only 10K/month, now the sudden hump in your bills will be tough to tackle.

I personally know a friend who could have gone for a wagonR new (top end) instead preferred to buy only a swift - as it looks better (although he cant afford it), I had advised him of the 13th month issue, which will again repeat on 25th month.

He was used to paying 10K EMI+3K fuel
on 13th month it was - EMI+FUEL+INSURANCE+SERVICE = 33K
That's double of what he can normally afford to spend on a car, ended up swiping credit card & then converting that excess bill to an EMI.


[/LIST]

Hi SS80,
Very well thought idea of the 13th month expenses.
I think the Insurance has to be renewed before the expiry which will come in the 12th month itself, of course there is grace period, but with that you can renew only after company official examines your car and reports it to the company(experienced it)
Also one can postpone the Service due to maybe by 1 month if there is severe cash-crunch.

When travelling is not part of your job, when you fuel from your pocket, You have other priorities in life & car is not on top of list - choose wisely.
Buy a car that you can manage easily and keeps you happy for atleast a few years.

There are so many Creta/ Ecosport/ XUV with less than 10k kms on odo for sale, primary reason (as per my conversation with olx sellers etx)
1. I dont use the car that often (I dont see why I need such an expensive ride)
2. I can save on EMI, anyway company offers cab - to & fro (I realised my EMI's are twice of many people's rent)
3. Parking issues = mostly fake
4. Going abroad = If half the owners were really going abroad, you would find no traffic jam in Bangalore.

There's a lot that goes into owning a car, dont go by just EMI & downpayment, if you go 1step higher than what you should ideally buy, be prepared for.

1. Higher Insurance premiums
2. Usually (not always though) higher fuel bills
3. Even simple things like mirrors will cost 8K for new cars (even if you claim insurance, you still got to shell 3K from your pocket)
4. Accessories cost too is high
5. Most new/ 8L - 10L cars run on Synthetic oil, so the oil change alone will land you a 4000bill
6. If you are caught in a Creta for signal jump, do you think the cop lets you go for 100/- ?
7. In case of out of court settlements for major accidents etc, the bigger or costlier the car you onw, the higher the victim's deman/ eventually payout.

1. 
   
   This is very true, DP and EMI are just a part of owning, many more expenses listed above are also to be considered.
   Thanks for sharing SS80, will help buyers in settling the budget for cars.

 

[Lameassonwheels]

If you are planning to buy ‘some’ car in an xyz price range, strictly go for affordable ones only. But if you really want to buy that ‘one’ car, which you love, in love with for a long time, just go for it. Make sure its not impractical like 200% of your budget, but only somewhat higher than your set budget. In short, for buying a car you really love you can compromise a bit, may be too much of a bit. As they say “kabhi dil ka bhi sun lia karo” (Listen to your heart too sometimes)

 

[rajanpatel0810]

I think Used Car is the best for people who want to have a Kind Of their DREAM CAR.

Reason being, the initial cost is less.

My monthly Salary was 22k + Variable incentives in 2015, when i bought a Honda City Dolphin 2005. It took me 3 months to finalize a car after starting the search for Honda City type 2 (Budget of 1-1.5 lacs) and slowly increasing the budget after test drive of dolphin models.

It was a direct owner deal and car had already reached 105000 ODO reading. But as it was a car provided maintained by his Employer Company i.e. HP, it was a well maintained car.
Above all, family car was an Innova already with a 8881 number and even this one was a 8881 number, rare luck, but true. So even that was a reason for the interest.
Bought it for 2 lacs, Immediately took it to Honda Service Station. Got the scheduled service done @ Rs. 6000 and received a big list of required repairs and replacement of parts. After reading the entire list, went to my local mechanic and asked to get the repairs done only if required for regular running. He got all the things done. The bill was Rs. 5000 for parts and 1000 labour.
Installed CNG Kit @ Rs. 25000.

Total acquisition cost : Rs. 2.37 lacs.

Now it was time to run it like a king. Rs. 3 per km cost on CNG in City and as less as Rs. 2 per km on highway, which is almost nearby to a running cost of a bike plus luxury of a Honda Sedan. So dint need to think whether to take bike or car anywhere.
Engine Oil top up after every 5000 km due to CNG, costed around hardly Rs. 500 in 3 months. And Regular servicing done at 10000 km which avg cost for around Rs.2000-3000. This amount went as high as Rs. 5000 only for any major repairs which hardly happened.

Got the Clutch Plate replaced only once in the entire tenure costing Rs. 1300 + 600 Labour.

I ran the car for another 90k km in the next 2.5 yrs.

Total Cost of repairs & service till date: Rs.35000
Insurance: Full Third Party insurance <2000 per year. This is enough if you are practical enough and are a safe driver.: Rs. 6000
CNG cost for 90k km: Rs. 2.25 lacs
Petrol used will be hardly some Rs. 10,000

So, total luxury cost for 2.5 yrs: 5.13 lacs.

Out of this Rs. 2.35 lacs was petrol and cng which is running cost which is applicable for any car you take.

Net cost of ownership: Rs. 2.78 lacs.

Now the black phase, My brother ran the car ignoring the radiator temperature indicator and blew the Head Gasket. This was a major expense. Got it repaired at local mechanic in 12k but now it ran properly only on petrol but Heated up in CNG. So finally decided to sell it off.
Went to dealer and got a deal of Rs. 1.25 lacs which was not a bad deal considering i was a 3rd owner as well as the problem in the car which was obviously not detectable unless you drive it for around 20-25 km at a stretch which cannot be a test drive.

So, finally sold it off.

Net cost for the luxury: 2.78 + 0.12 - 1.25 = Rs. 1.75 + running 2.35 = Rs. 4.1 lacs.

Which is even lesser than any lower segment brand new car cost.

Points to note:
1) Patience while buying the car. Sellers hurry to sell, but you take your time in getting the best deal. Do not hurry, coz it will later make you worry.
2) First trip to authorised service center will give you all the kundali of your car. But dont get things fixed there just get the list.
3) You need to have a trusted local mechanic who will not burn your pockets.
4) Regular servicing mandate.
5) If major problem occurs and solution is very difficult and requires various expensive methods for diagnosing the problem that too without guarantee of solution, dont do RND, get rid of the machine.

Hope this experience was useful.

 

[abhijit_net]

@Lameassonwheels
I am also using a 2018-19 Altis on CNG.
Cheap for daily use.
Only concern are:
Insurance = 15K per year (Cheapest 1st party insurance I could find).
Mobil 1 0W40 = 4K approx every 10K (1 year approx).
Xeon bulbs = 800 Rs - once every year (Cheap Chinese ones).

 

[abhijit_net]

@Lameassonwheels
I am also using a 2018-19 Altis on CNG.
Cheap for daily use.
Only concern are:
Insurance = 15K per year (Cheapest 1st party insurance I could find).
Mobil 1 0W40 = 4K approx every 10K (1 year approx).
Xeon bulbs = 800 Rs - once every year (Cheap Chinese ones).

Parts that i have bought from toyota in past year are:
1 connecting pipe (heat shilded) = 1K
Spark plugs - 2 times = 2440 Rs (8 plugs total).
Labour cost = 5 K (Includes one small accident).
Air filter = 350
Cabin Air filter = 350
Oil filter = 750
Wipers = 500
AC = 2500
Rubber seal = 1300

Total Cost last year = 29,000 Rs.

 

[sramanandi]

I earn 3L/month and wife earns 70k/month. I own a second hand swift, and still cant make my mind -- if i should sell it, or get it repainted :)

 

[vijay_968]

I earn 3L/month and wife earns 70k/month. I own a second hand swift, and still cant make my mind -- if i should sell it, or get it repainted :)

If the Swift fulfills your day-to-day requirements AND IF you are NOT bored of it, KEEP IT. Some Car will come along and appeal to your heart. Get THAT (or a better one).

PS-1: i had a Yr-2000 Model Matiz which was "big on the inside, otp notch finish, agile, reliable and (though underpowered) CUTE". i started looking for a New Car in 2006-07, but no Car appealed to me. Friends and Family were pulling my leg for owning a Matiz (Daewoo closed shop in 2002) ; i just ignored every one. In Aug-Sep 2012, the Rapid got me interested but Verna won the hearts. Now with the "Harrier, Hector, Seltos, Creta" around and many friends going for the Creta / Seltos, i get frequent questions as to when 'i will get my next Car'. My answer is "i buy, when i want to buy; NOT because others want me to buy" ... Hell Yeah.
PS-2: Sorry for the Laaaaaaate reply. i think, after July end, today is the first time i'm logging in here.

 

[abhijit_net]

At the other sprectum, I own Altis at low income. Have to keep some money in FD in case some major repairs come up. While buying insurance have to do jugads.. also skip few days without driving due to insurance expiry.
Upgrades have to be planned years in advance.
Headlight upgrade pending since last 3 years.

 

[researcher]

This is a decade old thread now. Congratulations to the founders and contributors to this thread.
My take home salary is Rs 259K per month. I'm not repaying any loan at this point. I've previously paid off my house, out-of-pocket. Which automatic transmission car I can consider buying without straining my resources?

 

[TSIVipul]

This is a decade old thread now. Congratulations to the founders and contributors to this thread.

Forget the salary part and get the one I drive daily:
Toyota Innova Crysta AT

Nothing to think about, nothing to worry about, it will outlive you too maybe!

Heck, 2020 is indeed a bad year, for the first time in my life I saw a broken down old gen Toyota Innova a few days back, tweeted it right away though!

 

[jazznewbie]

Hi folks! My pay is about 30 lacs pa. I have a monthly home loan load of 50k. I have been driving a Ford Classic for past 5.5 years and thinking of buying a new car. I consider myself an enthusiast and love driving. I am unmarried but probably would get married soon. Can't really decide on a budget. Any help would be appreciated. Thanks!

Oh btw, the flat on which I have the home loan on is empty and I probably would sell it off or rent it out. The rental income sadly wouldn't be much - around 6.5k after maintenance for a property worth 43 lac not including all the interest I have been paying all these years!

 

[Rohan Dhuka]

Hi folks! My pay is about 30 lacs pa. I have a monthly home loan load of 50k. I have been driving a Ford Classic for past 5.5 years and thinking of buying a new car. I consider myself an enthusiast and love driving. I am unmarried but probably would get married soon. Can't really decide on a budget. Any help would be appreciated. Thanks!

Oh btw, the flat on which I have the home loan on is empty and I probably would sell it off or rent it out. The rental income sadly wouldn't be much - around 6.5k after maintenance for a property worth 43 lac not including all the interest I have been paying all these years!

Actually if I had that kind of money to spend on a car or two then I would also buy a serious SUV - maybe a brand new Pajero or other proper 4x4 Diesel SUV for daily use as well as for fun and for weekend enjoyment.