[McLaren Rulez]

Originally Posted by Lobogris

First of all, no one should buy a vehicle costing less than 15 to 20 lakhs as far as possible. The reason is the lack of safety and the lack of quality in cheaper vehicles

I really hope this is sarcasm and it's just me being too thick to get it.

Almost no one needs anything more than a 15 lakh car. Plenty of great cars that will do everything you ask of them (including safety and quality) within that budget. It's nice to have nice things but there are far more important things in life to prioritize before spending on a car.

[Mike_Schumacher]

Originally Posted by McLaren Rulez

I really hope this is sarcasm and it's just me being too thick to get it.

Almost no one needs anything more than a 15 lakh car. Plenty of great cars that will do everything you ask of them (including safety and quality) within that budget. It's nice to have nice things but there are far more important things in life to prioritize before spending on a car.

But that's not the point. If we focus on only "need", it can be stretched to almost anything. Why even buy a car when you can avail public transport or walk or cycle? Why have a fancy meal when you can survive on "daal chawal roti"? What's the "need" to travel, you can very well survive within the boundaries of the home.

I'm really surprised at some of the comments here, especially given its a car website.

It's as if we have to always live in fear, and keep on saving every last bit of money so that we can die rich. In my humble opinion, there needs to be a balance instead of a lifelong frugal mentality.

[theabstractmind]

I honestly don't have the patience to read through all of the thread to see if this has already been said. There is a general rule of 20:4:10. Meaning buy a car if:
1. You can pay a minimum of 20 percent of On Road Value down.
2. Loan should not exceed 4 years. In India, we can keep this as 5 years.
3. Total expenses on your car - EMI, Insurance, Service, and fuel, should not exceed more than 10 percent of your income.

I won't go into the pain of explaining the above. It will be akin to convincing that Fire is hot Or Ice is cold. There are enough portals who explain this rule. Does it work? Hell, it works! As someone who has bought an apartment in the past 5 years, faced salary cuts during Covid, and faced uncertainty over my job due to a global event, I can confidently say that the rule works.

[Bhodrolok]

Originally Posted by Lobogris

First of all, no one should buy a vehicle costing less than 15 to 20 lakhs as far as possible. The reason is the lack of safety and the lack of quality in cheaper vehicles.

I just don’t understand why people earning well buy vehicles like Tata Tiago /Punch or Hyundai i10.

What? Am I missing something here or do I see an actual troll on TeamBHP?

[rakesh_r]

Originally Posted by Lobogris

So even if my income were to be just 8 lakhs per annum, I would definitely strive to buy a vehicle costing at least 15 to 25 lakhs.

What about Service and Insurance costs? Don't you think that would be on the higher side? Its not about just purchasing the car, more goes into their upkeep. For eg, the SCross 1.6 which fell in between 15 to 20 lacs, an average service can set you back between 10 to 15k, a clutch replacement will set you back by 50k since its a DMF. I am not even talking about Hyundai's service costs.
Safety is paramount, no doubt, but i'd rather ferry my wife and kiddo in a Wagon R than on an Activa.

[am1m]

"At x salary you should have a car that costs Y, or some formula involving x" strikes me like the saying about having to spend "x month's salary on an engagement ring".

These are just marketing gimmicks that play on our social insecurities and inability to resist peer-pressure, or catchy-sounding shortcuts at best.

Buy what makes sense for your usage, the amazing road infra, parking situation, and traffic in our cities. And what makes financial sense. Everything else is just someone else's opinion, not a fact.

[libranof1987]

Mod note: Please be polite and respectful, even in debate and disagreement. Let's allow everyone to put forth their views, without ridicule. Thanks!

[careind]

I dont think there is a one size fits all solution for this. The outgo would vastly depend on the current corpus available, career progression at present/future potential combined with the passion one has got for (a) car.

If one already has a sizeable corpus, and earning 2L nett. with no other EMIs and good growth options in the current career, they may opt for a BMW X1 with 1L EMI pm.

But if the same person has a 50K Nett. EMI Homeloan outflow, they might opt for a Creta at 30K.

I guess it all depends on what is the marginal utility that extra 1L (or 10K or 10L or 1c) provides you in the present and the future potential, considering money as a commodity.

[DDIS_RE650]

Originally Posted by careind

I dont think there is a one size fits all solution for this. The outgo would vastly depend on the current corpus available, career progression at present/future potential combined with the passion one has got for (a) car.
If one already has a sizeable corpus, and earning 2L nett. with no other EMIs and good growth options in the current career, they may opt for a BMW X1 with 1L EMI pm.
But if the same person has a 50K Nett. EMI Homeloan outflow, they might opt for a Creta at 30K.
I guess it all depends on what is the Marginal utility that extra 1L ( or 10K or 10L or 1c) provides you in the present and the future potential, considering money as a commodity.

I lakh EMI for driving BMW with earning of 2 lakhs per month, it is a finance suicidal. What will happen to your BMW after 7 years? You will be paying high insurance premium, high on maintenance and fuel cost.

Originally Posted by Mike_Schumacher

But that's not the point. If we focus on only "need", it can be stretched to almost anything. Why even buy a car when you can avail public transport or walk or cycle? Why have a fancy meal when you can survive on "daal chawal roti"? What's the "need" to travel, you can very well survive within the boundaries of the home .

I'm really surprised at some of the comments here, especially given its a car website.

It's as if we have to always live in fear, and keep on saving every last bit of money so that we can die rich. In my humble opinion, there needs to be a balance instead of a lifelong frugal mentality.

Indian survive because of sizeable savings with mindset of investing in assets not liability. I can afford Fortuner but will I buy? Answer is no, why to invest 50 lakhs and park in home or just use for point A to Point B commute.
I would go rather with XL6 or Grand Vitara or Creta or VW Taigun without any worry.

[careind]

Originally Posted by DDIS_RE650

I lakh EMI for driving BMW with earning of 2 lakhs per month, it is a finance suicidal. What will happen to your BMW after 7 years? You will be paying high insurance premium, high on maintenance and fuel cost.

Exactly, if you do not have a financial security of a sizeable corpus which would make these quoted costs more dearer.
Moreover, it was just an illustration to explain the marginal utility and guess you have taken the illustration to heart as is. So if 2L does not tickle your fancy, read it as 5L/6L/++
The "sizeable corpus" part that you missed in your quote would make the other costs less dearer due to the financial stability/returns it offers.

[Rahkehs]

Originally Posted by DDIS_RE650

Indian survive because of sizeable savings with mindset of investing in assets not liability. I can afford Fortuner but will I buy? Answer is no, why to invest 50 lakhs and park in home or just use for point A to Point B commute.
I would go rather with XL6 or Grand Vitara or Creta or VW Taigun without any worry.

By this logic, if car is bought from only utilitarian point of view, then any car above15 Lakhs is a financial mistake. What's the point of earning if one cannot enjoy it and lives in constant fear of what's going to happen in future!
For salaried people, there is mostly a gradual increase in salary (~10%) whereas the EMIs remains constant so bit of over-indulgence is permitted since people tend to generally keep their car for 8-10 years.

[sulliavi]

While I agree on the point of buying car within our income range, its strange to read few people say they don't want to buy a car/use only public transport and yet they got into this automobile forum

Why do we calculate income of 1 person alone ? There are people who buy one good car as a family, i.e., money shared by Husband, Wife and sometimes parents as well. Also, most of the times we have our old car and exchange with the new ones, so old car covers good part of the expense here . On the other hand, 1s time buyer will mostly buy a cheaper car.

peace

[Mike_Schumacher]

Originally Posted by DDIS_RE650

Indian survive because of sizeable savings with mindset of investing in assets not liability. I can afford Fortuner but will I buy? Answer is no, why to invest 50 lakhs and park in home or just use for point A to Point B commute.
I would go rather with XL6 or Grand Vitara or Creta or VW Taigun without any worry.

I agree to your point in a general sense.

First, what made me comment was that extremely conservative chart which was shared before as a guideline. I still haven't got a reply on what's the logic behind it.

Also, if you see car as a liability then I don't even see the point of buying a Taigun or a creta. If moving from point to point is the objective here, surely there are cars much cheaper than that which will serve the purpose?

And talking about depreciating asset, it's very difficult to measure the intangibles. Sure, if you just consider the buying and the selling price , all cars are depreciating assets. But the experience you get, the sheer joy you feel while driving a car of your dreams is something priceless to me.

That's why I said a balance is required between between being frugal all the time expecting the worst in life , and indulging in unaffordable and over the top luxuries.

[Lobogris]

Originally Posted by PrasannaDhana

So, All vehicles <15 lakhs are inferior?

I didn't use the term 'inferior'. However, it is correct in the sense that an i10 or Punch is inferior to a Venue or Nexon and both of those are inferior to something like a Creta or Seltos. The last two are inferior to MG Gloster or Hyundai Alcazar and those two are inferior to something like an E class or 5 series. So, obviously, a vehicle costing say 6 lakhs is basic and less desirable than one costing 20 or 50 lakhs.

Originally Posted by McLaren Rulez

I really hope this is sarcasm and it's just me being too thick to get it.

Almost no one needs anything more than a 15 lakh car. Plenty of great cars that will do everything you ask of them (including safety and quality) within that budget. It's nice to have nice things but there are far more important things in life to prioritize before spending on a car.

If a person is earning very little and has other priorities like saving for a home, then what you say is correct. Even in those circumstances, one should aspire towards a better vehicle down the road. If you have some money then there is no reason to spend 5 to 10 years driving a basic vehicle. The same argument can be made for almost anything. Do we buy the most basic phone for 8k or a mid range one for 30k or go for the top Apple or Samsung for 1.3 lakhs? Do we buy a 32 inch TV for 10k or a 65 inch for 50k or a 85 inch OLED for 5 to 10 lakhs? Do we buy a small 1BHK or a more luxurious home? All of these are not needed by your logic but they all add value for people. I wasn't even advocating that people but a 5 series or E class. I was only talking about setting the aspiration level to a basic mid range vehicle. The equivalent is recommending a person to buy at least a 20 to 30k phone instead of the very basic 7 to 8k ones. Those will also do everything you need but the difference in quality would be considerable.

Originally Posted by Bhodrolok

What? Am I missing something here or do I see an actual troll on TeamBHP?

No intention to troll.

Originally Posted by rakesh_r

What about Service and Insurance costs? Don't you think that would be on the higher side? Its not about just purchasing the car, more goes into their upkeep. For eg, the SCross 1.6 which fell in between 15 to 20 lacs, an average service can set you back between 10 to 15k, a clutch replacement will set you back by 50k since its a DMF. I am not even talking about Hyundai's service costs.
Safety is paramount, no doubt, but i'd rather ferry my wife and kiddo in a Wagon R than on an Activa.

Again, the post said that if a person can afford it then that should be the minimum standard. Any extra maintenance cost is well worth it. Life has to be enjoyed as well. It's important to save and be prudent but once you have reached some way down that path, it is good to also reward yourself.

[kiku007]

Originally Posted by Acharya

A conservative guidance map of spend on cars, at certain age vs income combination.
The idea being, one is allowed to splurge a bit if earning well in early years. Go slow during 40s on Auto spend. If one has saved enough and continue to earn well during 50s, you can spend slightly more on yourself.

I'm sorry buddy but I have to save the declining automotive enthusiasts community and humbly disagree with you. Your chart may make sense to someone who's having saving as their #1 priority and cars as "not even my priority".

I'm not saying one should drown in debt to fulfill their automotive dreams but find the right balance based on their individual and family circumstances.

I'm posing the questions that I've read in a couple of books.

• Do you want to become a millionaire or live like a millionaire?
• Do you want to have the satisfaction of having a bank balance of $1M or the freedom to be able to spend a $1M when you want to?
• Do you want to live rich or die rich?

Completely different things and your strategy needs to be tailored to achieving your goals.

I've seen too many people regret wasting their prime age based on the delayed-gratification philosophy. However, if that's what one desires without regret then, sure go for it.

Originally Posted by raghavrayudu

"Anyone who lives within their means suffers from a lack of imagination." - O Wilde

As that quote goes, I am of opinion that some decisions in life are beyond the rationality of maths and economics and pie charts and cars are one such for me.

If you have big aims, that motivates you to do better in life and you'll eventually figure out.

+100.

I believe people come to TBHP to share their passion and be inspired by others who have lived their dreams. Humans can push themselves to fulfill their dreams if they have the passion and determination for it. There's a lot of sacrifice to be made in the process. One might even need to leave their country to make it possible.

IMHO let's not restrict ourselves based on a set of conservative arbitrary numbers.

I come here to read threads like the below,

https://www.team-bhp.com/forum/long-...ip-review.html (Oh Lord, won't you buy me a Mercedes Benz - W221 S350 initial ownership review)

https://www.team-bhp.com/forum/super...1-997-2-a.html (Vroom for real - My used Porsche 911 (997.2))

https://www.team-bhp.com/forum/super...yman-more.html (My Sports Car Journey in India | Maserati Quattroporte, Porsche Cayman & more)

https://www.team-bhp.com/forum/test-...-0-gr-mk5.html (My 2022 Toyota Supra 3.0 GR MK5)

https://www.team-bhp.com/forum/test-...laced-gts.html (My Porsche Cayenne GTS | Ownership Review | GTI replaced with GTS)

I don't want to know how they made it. It is enough for me to know that it is possible.