[car_crazy1400]

Originally Posted by earthian

I have retired. I pay taxes, though i am not 'heavily' taxed. i have no 'business' to claim depreciation and expenses. i work sparingly with the Government and Educational Institutions free of cost. When they will have me.i am not going to avail financial loan.

Yet, i am seriously considering buying a luxury car. And am being supported whole heartedly by the family including my father and mother who are 89 and 85 respectively. Incidentally they don't stay in the city i live in and before i forget, they come from a humble middle class background. So no privy purse or a windfall inheritance.

Am i crazy? Maybe. But funnily seem to know quite some crazy people like me. And some of them are in this forum too.

We worked to get where we are. Not by being dishonest though.

Sir, I wholeheartedly agree with you.

I just disagreed with a fellow members' comments that all luxury cars are bought by tax evaders. I thought it was extremely tasteless and I don't think he thought it through. Not everyone is a tax chor in this country.

[earthian]

Originally Posted by car_crazy1400

Sir, I wholeheartedly agree with you.

I just disagreed with a fellow members' comments that all luxury cars are bought by tax evaders. I thought it was extremely tasteless and I don't think he thought it through. Not everyone is a tax chor in this country.

Yes, thank you. My comment was an extension of your observation. However, call it our mentality, up bringing or mental roadblock, anyone who does not 'conform' to the acceptable norm of frugality, spending or lifestyle; or who is higher in economic status generally elicits a comment that was expressed.
When generations of hardworking middle class have seen that the scamsters, the dishonest, the politicians, the tax evaders; and such are the people who have money to burn and who amass wealth, then i wouldn't blame them.(the hardworking middle class)
I know, because i am, or rather was, one too.

And here is something to make you smile. My father bought a new car some months ago. At 89. While he hires a driver for travelling on highways or at Chennai, he does drive it when in his village- to go from his house to the temple - a distance of less than a kilometre.

[RavenAvi]

Automotive sales numbers, particularly passenger vehicle sales, are expected to see a sharp decline for the month of December 2016, according to a Nomura report.

The Japanese brokerage firm has predicted that PV sales could see a collective drop of around 11% Y-O-Y. Hit by a liquidity crunch post the demonetisation drive, rural retail sales are said to be affected a lot more than urban sales.

No amount of "year-end" offers, zero down payment schemes, heavy discounts or EMI schemes are bringing back the customers to the PV showrooms.

"We expect December wholesales to be impacted by a sharp decline in retail sales due to demonetisation," Nomura said in a research note, adding that Original Equipment Manufacturers (OEMs) might go for inventory de-stocking to clear off 2016 model year inventory. "Annual maintenance shutdown at Maruti Suzuki, and a limited wholesale push to clear off older inventory should keep volumes muted," it said.

The report further noted that "rural retails are impacted more (double-digit decline) compared to the urban segment, due to the liquidity crunch".
The outlook for the auto sector, however, looks bullish post the normalisation of cash crunch.

"Normalised availability of cash may happen by February- March 2017, post which we expect growth to pick up," Nomura said adding "we expect a strong double-digit growth by second half of financial year 2017-18, off the low base."

ET Auto

[girimajiananth]

I expected the car prices to come down. I was surprised to see Tata, Toyota and Hyundai to hike prices. If prices of new cars go up, wont the prices of used car increase too ?

[lamborghini]

Originally Posted by girimajiananth

I expected the car prices to come down. I was surprised to see Tata, Toyota and Hyundai to hike prices. If prices of new cars go up, wont the prices of used car increase too ?

Discounts have increased, waiting periods have reduced.

However, mass market hasn't been hit as badly as the luxury segment where you can get the car OTR for cheaper than the ex-showroom cost in many cases.

The increase in prices as pointed out by you is a standard practice that happens every new year. If not today, it will happen after a few months once the market picks up.

[Hayek]

Originally Posted by sukhoi30

This is an interesting statistics ...

http://timesofindia.indiatimes.com/b...w/56200529.cms The luxury vehicles definitely are bought mostly by the super rich who do not pay taxes.

Originally Posted by earthian

I have retired. I pay taxes, though i am not 'heavily' taxed. i have no 'business' to claim depreciation and expenses. Yet, i am seriously considering buying a luxury car.
We worked to get where we are. Not by being dishonest though.

Earthian, I think you are the exception to the rule.

I work for a bank with lots of highly paid employees, who belong to the 40000 odd folks that declare incomes of over a crore. When I look at the cars my colleagues own, most of those in the ~₹ 1 - 1.5 cr pre tax income category have cars that cost in the ₹15-20 l range, which are replaced once in 5-6 years. It's only those who have earned over ₹ 2-3 cr for a few years in a row who buy cars that cost more than ₹30 l. That seems logical - if you earn ₹ 1 cr, you take home ₹ 70 l - and would typically not want to spend more than 3 months income on a car (esp if you are still renting, or need to pay an EMI on your home). Yes, Banking is an unstable profession with at least 30% of the above compensation coming from bonuses - so may be folks with more stable occupations have a higher propensity to spend. But even assuming that people in other professions would spend 5-6 months post tax income on cars once in 5 years, the sales of luxury cars (Fortuners and above - about 50000 per annum) suggests that there are at least 250000 people who earn more than ₹ 1 cr per annum pre tax.

In fact, when I look at the fact that so many people who earn a lot are quite happy being driven around in Innovas, I suspect that even the above calculation is a gross under estimate. So if someone claims that most luxury car buyers have illegitimate or undeclared income, that seems obviously right. Tarring everyone with the same brush is of course wrong.

Moving back to the topic, discounts on new cars have widened - so for those of us with only white money, it's a great time to buy cars or property for that matter. Selling stuff is tougher - have received several OLX responses to my ad to sell my old car offering cash payment. Have put them off, of course. Wonder how many will still be around tomorrow now that the old notes saga is over.

[lamborghini]

Originally Posted by Hayek

Earthian, I think you are the exception to the rule.

I work for a bank with lots of highly paid employees..

Sir, you work in the finance industry where there is a lot more emphasis placed on savings etc. as most of the people have a financial bent of mind.
But at the same time, there are a lot of people who will buy an expensive car even if they cannot afford it (for whatever reason) - most of them sporting out of state registration plates (as you are from Bombay, I am sure you understand what I am saying).
In fact, my respect for those sporting MH plates on a fancy car is multiples that of anyone else driving on JH or CH plates - heck, even a small car with MH plates earns more respect in my eyes than say a Lamborghini with JH plates!

As you rightly said, this is a great time to pick up a car! Quite a few of my friends have gotten stellar deals on their vehicles (one got nearly 17-18L wiped off the price of an E 350D); and this is one of the few times I wish I had the financial flexibility to pick up a new ride!

[earthian]

Originally Posted by Hayek

Earthian, I think you are the exception to the rule....

Well, there are quite a few like me, who have 'retired' after slogging for over 35 years. It is not that luxury cars are unaffordable for us. No, they are not. However, as age catches on, one starts questioning the 'value' of such purchases. In my case, as i told you, i was fortunate that the entire family, rooted for me. Once you move up Maslow's hierarchy of needs, then your risk taking ability significantly increases.

Tarring everyone with the same brush is of course wrong.

That is all i was protesting about.

Moving back to the topic, discounts on new cars have widened - so for those of us with only white money, it's a great time to buy cars or property for that matter.

Isn't it? Great fun. Reminds me of my corporate days and hence grabbed a chance to play hard ball, with an opponent who knows he is weak, and worse; he knows that you know it too.

Originally Posted by lamborghini

But at the same time, there are a lot of people who will buy an expensive car even if they cannot afford it (for whatever reason)..

Must be a Gujju for sure. Only we Gujjus pick up what we don't need at all, for the excellent reason that 'the price is good.' Bhav Khoto Nathi.

[Hayek]

Originally Posted by earthian

Well, there are quite a few like me, who have 'retired' after slogging for over 35 years. It is not that luxury cars are unaffordable for us. No, they are not.

I quite get that. If I had not upgraded to a lux car now, I probably would have done so once I retire and my son is settled. But the number of affluent retirees is small compared to those who have substantial untaxed income.

[earthian]

Originally Posted by Hayek

I quite get that. If I had not upgraded to a lux car now, I probably would have done so once I retire and my son is settled.

Join the gang. Nowadays i am very busy being a full time 'Vella'. Wandering is a serious business, Sir.

[RavenAvi]

Maruti-Suzuki has reported a sharp decline in monthly sales in the passenger car segment of around 4.4% for the month of December 2016.

The domestic auto giant announced that it has sold 117,908 units in December 2016. (106,414 units as domestic sales, 11,494 units as exports)

In comparison, the company had sold a total of 119,149 units (111,333 units as domestic sales) in December 2015.

What is worrying for Maruti is that the bread-and-butter duo of the Alto and Wagon R, which sold 31,527 units in December 2016 (December 2015: 37,234), down a sizeable 15% YoY, is bearing the brunt of the cash crunch.
If that’s not bad enough, sales of the compact car quintet of the Swift, Ritz, Celerio, Baleno and Dzire are also down – at 43,295 (December 2015: 47,354), down 8.6% YoY.
The Dzire Tour, which is sold only as a taxi, sold 2,559 units (December 2015: 3,614), down 29% YoY.
Even the two vans – Omni and Eeco – which usually give a fillip to overall sales numbers are down 17% to 9,224 units (December 2015: 11,122).

The carmaker would have posted a higher level of YoY sales decline if it weren’t for the smart performance of its UVs (Gypsy, Ertiga, S-Cross, Vitara Brezza) and the Ciaz premium sedan. Thanks to surging demand for the Vitara Brezza compact SUV, Maruti’s UV sales soared 75% YoY to 16,072 units (December 2015: 9,168).

Autocar Professional

[GrammarNazi]

I received this on a WhatsApp automotive group a few days back :


I mean WHY would anyone wantedly attract the IT departments scrutiny by buying a car this financial year ?

[slicvic]

Originally Posted by GrammarNazi

I received this on a WhatsApp automotive group a few days back :
Attachment 1590749

I mean WHY would anyone wantedly attract the IT departments scrutiny by buying a car this financial year ?

The car dealerships had accepted 3rd party cheques for payments. So its basically put your old notes into someones account, and give a cheque from their account to buy the car

[sgiitk]

Originally Posted by slicvic

The car dealerships had accepted 3rd party cheques for payments. So its basically put your old notes into someones account, and give a cheque from their account to buy the car

One major issue has been that loans of cars bought on finance are often paid back in cash. Quite often in under a year as well. I hear this is the main cause of the slow down. Third party cheques is a lesser menace.

[volkman10]

Effect on car industry sees a mix trend. Though figures of MS shows a decline in reported dispatches it is as per the plan as the company had shut for ~ 6 days owing to its planned maintenance schedule.

Maruti said the production in December was as per its internal plan. “While the retail demand for our products was strong, our wholesale (numbers) in December are as per our plan decided at the start of the year

The company had shut down its facilities for a week in December for scheduled maintenance

Link