[Turbanator]

Relevant here I guess

Well, there's not much new ground left to plow
And crops need fertilizing now
My hands don't earn me too much gold
For security when I grow old
But we'll all be equal under the grass
And God's got a heaven for country trash
God's got a heaven for country trash
I'll be doing alright for country trash

Johnny Cash

[Tutenkhamen]

Originally Posted by hserus

Demo car from a dealer? I hope you got a massive discount ++ checked it thoroughly as such cars tend to be badly abused.

Yea. Did due diligence and JLR is also doing a 360 inspection.
Odo is set at 3.5k km and I learnt these vehicles are fit with speed limiters and that prevents abuse (is it the case with Germans too?)

The car looks pristine and ex showroom price was preposterously close to Superb L&K

[anjan_c2007]

Originally Posted by Turbanator

Relevant here I guess

Well, there's not much new ground left to plow
And crops need fertilizing now

Johnny Cash

Feels beautiful to read my favourite country singer, the Late Johnny Cash's name appearing.

An apt lyrics is from another country song made popular by Willie Nelson and Merle Haggard, who did separate cover versions of the original hit by Lefty Frizzell (1952).

The lyrics goes...

And if you've got the money honey and I've got the time
We'll go honky tonkin' and we'll have a time
We'll have more fun baby all the way down the line
If you've got the money honey and I've got the time
There ain't no need to teary' lets start out tonight
We'll have fun oh boy, oh boy and we'll do it right
Bring along your Cadillac leave my old wreck behind
And if you've got the money honey and I've got the time
Now we'll go honky tonkin' make every spot in town
And we'll go to the park where it's dark and we won't fool around...

[46TheDoctor]

The policy which i believe in and follow:

A. Once we make progress in career and our purchasing power increases significantly, we should buy cars not costing more than our 3 months income because as we progress in our life, we gain other responsibilities/liabilities also along with the increased income.

Also IMO, total value of the vehicles should not exceed more than 5% of one's networth for a non auto enthusiast person and 10% for the automobile enthusiast as those are ultimately depreciating assets.

One more rule to be obseved: We should not buy the vehicle on loan which we cant buy without it.


B. When starting a fresh career (typically low salary/income and low networth stage) and buying the first car:

Ideally one should buy a reliable used car at a price which is less than one's 6 month's income.

If buying new, then
1. Buy something which is reliable, sturdy and has great longevity so that it can serve as a work horse for minimum 10 years.
2. Maximum car price budget should be less than your one year's in hand income.

[avira_tk]

Originally Posted by 46TheDoctor

The policy which i believe in and follow:

A. Once we make progress in career and our purchasing power increases significantly, we should buy cars not costing more than our 3 months income because as we progress in our life, we gain other responsibilities/liabilities also along with the increased income.

Also IMO, total value of the vehicles should not exceed more than 5% of one's networth for a non auto enthusiast person and 10% for the automobile enthusiast as those are ultimately depreciating assets.

One more rule to be obseved: We should not buy the vehicle on loan which we cant buy without it.


B. When starting a fresh career (typically low salary/income and low networth stage) and buying the first car:

Ideally one should buy a reliable used car at a price which is less than one's 6 month's income.

If buying new, then
1. Buy something which is reliable, sturdy and has great longevity so that it can serve as a work horse for minimum 10 years.
2. Maximum car price budget should be less than your one year's in hand income.

Seriously, what kind of limit is 3 month's salary? It won't pay for road tax in Karnataka. A vehicle is not an asset, it's a tool or for some, a hobby, an expensive one is good for business. People judge professional capability by what car you have, especially for doctors, lawyers, CAs and so on.

Buying a used car is terrible as a first car, especially when financing is readily available for the salaried (this whole thread is about them), a Maruti hatch will serve very well. Loan is about repayment ability, why would you not take a loan if it's offered cheap? What about opportunity cost?

Any car will last a decade or more of you're buying in 2021, my punto is a daily driver after 10 years plus. You can't skimp on maintenance though.

[Livnletcarsliv]

I think no one is wrong here.

There are 3 types of automobile customers/users here
1. Car/bike just as a means of commuting. It's just an object that moves people from A to B. This type has the highest in number (at least in India).
2. Car/bike as an emotion, passion, life, and breath, etc. (the least number in India).
3. Car/bike as an investment and generating revenue out of it. Car Dealers, Entrepreneurs, Tours, and Travels, Taxis and Cabs, etc.

For Type 1, obviously, it's only head and no heart.
For Type 2, it's always heart and head.
For Type 3, it's head first followed by heart on demand.
Your type depends on what an automobile is to you - I am definitely the Type 2 where I don't mind even going for a 100% loan for the one I love.

[aniketi]

My calculation is simple. One should not go beyond car worth more than his/her 8-10 months take home salary or average monthly income in business. For EMI, it should be around 1/8 or 1/10 of your monthly income so that it will be easily manageable along with other expenses. One can spend more if he/she don't have any home EMI.

[AirbusCapt]

Originally Posted by aniketi

My calculation is simple. One should not go beyond car worth more than his/her 8-10 months take home salary or average monthly income in business. For EMI, it should be around 1/8 or 1/10 of your monthly income so that it will be easily manageable along with other expenses. One can spend more if he/she don't have any home EMI.

I agree, I believe in the same philosophy. The rest of the faff like 3 months take home or 10% of networth is just that; faff.

[navin]

I was discussing my past cars with other BHPians and noticed a trend.

When I was younger, more passionate/involved in cars and did not have any family I allocated a larger percentage of my income to cars (both in purchase and maintenance).

As I have gotten older, I have more pressure on my time and finances, the car I am driven in has become less important. I now allocate only enough that the car I own is comfortable, sensible and reliable.

[Altocumulus]

Interesting viewpoints.

1. 15% of CTC
2. 3 months monthly income, etc.

So let's just look at that.

A person with a 50L CTC should not buy a car for more than a 7.5L in scenario 1 or about 9L in scenario 2.

And someone with 20L CTC would be 3L or 4L. Basically new car is out of question, something used.

10L CTC, 1.5L or 2L. Hope he doesn't stay in Delhi, else he may buy the car but wont be able to use it legally.

The Reverse is even scarier.

For someone to own a Rapid he should have a CTC of around 90L and in my case about 2CR to own the Rapid and Duster.

If the 'irresponsible me' had a 2CR package today, my signature would definitely said an Endeavour and 330i at the very least

[ashis89]

Originally Posted by Altocumulus

10L CTC, 1.5L or 2L. Hope he doesn't stay in Delhi, else he may buy the car but wont be able to use it legally.

Very very Interesting.

Let alone Delhi, for someone with 10L CTC, they can't afford the road tax of a car in most of the cities. Even a 150cc bike will be beyond reach.

I will go with what others have already said - don't hurry into making a purchase. Take your time to understand your finances, typical ownership costs of a car and most important, your 'disposable' income. Buy something that you won't regret after taking the decision.

[Latheesh]

Originally Posted by Altocumulus

Interesting viewpoints.
1. 15% of CTC
2. 3 months monthly income, etc.

My last car OTR price was 75% of my annual CTC and I used it for 10 years. If I follow this 3 months income rule, I can only buy the car from same segment now that to base variants.

[Shreyas]

Originally Posted by Latheesh

My last car OTR price was 75% of my annual CTC and I used it for 10 years. If I follow this 3 months income rule, I can only buy the car from same segment now that to base variants.

That's actually a major problem. Prices of every commodity has mostly increased exponentially, whereas salaries have remained more or less same.

[maxratul]

My philosophy is not to take any loans or EMI to buy a car. Save up some cash, have a threshold for liquidity, and then buy in full cash. Personally speaking, this saves a lot of head + heartache.

[rajushank84]

Its not a matter of salary, its a matter of net-worth. Some people have zero salary and buy cars with cash .