Which car for someone with an income of Rs 2lacs per month EDIT: Decided on BMW 530D

ThE Godfather · 22nd August 2009, 14:31

OH OK..! This would be a nice strategy.

entropy · 23rd August 2009, 01:49

Quote:

Originally Posted by ThE Godfather

What I said that I have my own 3crore in my account. from which I can spend upto 5o lacs on a car. Currently I am earning some 2.5 lacs on monthly basis. From which, what I calculated, I only spend some 50k on my monthly expenditure. What I want to know is, if I buy a BMW, Audi or a 3-Star, would I be able to bear the maintainance of the car with the 2lacs in my pocket? Thats what my coonfusion is.

My rule of thumb = 12 * 2.5 = 30 lakhs per annum
Can consume upto 15% of your yearly income for car(s)
=> 30 * 0.15 = 4.5 lakhs
Buy a car costing between 4 to 5 lakhs.

I don't believe in EMIs etc but may be that is just me. Now please don't run after me

. This is just my funda and I stick to it.

rageshgr · 23rd August 2009, 02:03

Ha ha ! so according to entropy: in my case, my gross household income: 7.5 lpa

7.5*.15 = 1.125 lacs ! But I already bought a Santro costing 4.6 lacs (61%)

If you ask me, one can easily buy a car that costs 40-50 % of annual income. Higher income groups might even be able to shell out more % of their anuual income on car, as usual expenses may not increase linearly with income increase.

Hey but your logic is cool too! It makes sure that maintaining and extra load of paying EMIs on your car does not put much strain your monthly budget. So by calculating reverse from the fact that you have Honda Civic, you must be making 1 crore per year! That's great going

Man if I had 1 crore per year, I would drive nothing less than a BMW 530 D, or may be an M3 well dreams have wings but do not require fuel.. he he

sgiitk · 24th August 2009, 09:22

3 crores will be whittled own ny Inflation. I remember seeing on the box a long time ago statements by both Manmohan Singh & Chidambaram that it you discount inflation then the real rate of return of retirement funds (which is what we are looking at with safe quasi-passive management) globally is only 3-3.5%. Thus 3 crores are generating a 'real' income of only 10.5 lacs at best.

shankar.balan · 24th August 2009, 10:04

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.

then I would also like a nice anonymous looking Dark Green MM540/550DP work-horse and this, I would spend some money on, to make it a real off-road working monster - i would of course get it completely up to scratch mechanically and then pop off to that nice 4x4 off road shop near Museum Road in Bangalore, buy all sorts of 4x4 toys and camping equipment and enjoy.

The rest of the cash I would invest and stop working and live a quiet life somewhere not too far from the hills, with my wife, my dogs, my books and I would play golf three of four days a week! probably buy a new set of golf clubs as well.

And I would take one proper 30-40 day holiday every year to some place I ve not been to before.

No harm dreaming I guess on a blighted Monday Morning!

DieselFan · 24th August 2009, 11:08

Quote:

Originally Posted by entropy

My rule of thumb = 12 * 2.5 = 30 lakhs per annum
Can consume upto 15% of your yearly income for car(s)
=> 30 * 0.15 = 4.5 lakhs
Buy a car costing between 4 to 5 lakhs.

I don't believe in EMIs etc but may be that is just me. Now please don't run after me

. This is just my funda and I stick to it.

entropy - That is too conservative. With above logic a person earning 10 L a year can't by any car other than a Nano or a person with 6L per annum should go only on two wheelers?

Assuming a person sticks to his car for at least 3 years if not more going by your logic if a person earns 30 L then he can safely buy a car worth 13-14 lacs without feeling much of a pinch on his wallet..

As a thumb rule a person can spend 15 % of his annual salary on EMI safely if he is not commited to any other loans. If he has a house loan too this number comes down to 10%.

rubin2006 · 24th August 2009, 19:21

Quote:

Originally Posted by DieselFan

entropy - That is too conservative. With above logic a person earning 10 L a year can't by any car other than a Nano or a person with 6L per annum should go only on two wheelers?

Assuming a person sticks to his car for at least 3 years if not more going by your logic if a person earns 30 L then he can safely buy a car worth 13-14 lacs without feeling much of a pinch on his wallet..

As a thumb rule a person can spend 15 % of his annual salary on EMI safely if he is not commited to any other loans. If he has a house loan too this number comes down to 10%.

Exactly how many people making 20 L plus drive a Alto This rule can be applied for people make more than 50 L PA . On higher up also i have seen people making more than 1.5 Cr per annum and driving a Honda Accord and i have seen people making 10 L and buying a Civic ( definitely ENTROPY,s Logic is correct for people making 50 L to a few crores per year

Where as for people earning less there is no rule defined get what u like just save enough for rainy days and make sure u have proper investment so some day u are in category that u can use 15 % formula and get your dream car too

and thank Entropy Bhai for the Idea

rageshgr · 24th August 2009, 20:37

@rubin2006 "make sure u have proper investment so some day u are in category that u can use 15 % formula and get your dream car too

"

Awesome way to put it!

loving_alaap · 25th August 2009, 23:51

Corolla Altis / Civic (practically thinking) , Sonata / Accord (a bit on higher side) will be a nice option for that friend.

He can afford C / 3 / A4 too, but, better utilize that money in otehr investment (as these car depriciate like anything).

Better pospond the dream of C / 3 / A4 for 3-4 yrs. (may be after changing a job with good hike).

abhinav.gupta88 · 26th August 2009, 00:33

I don't think we should comment on his business (self made / parental upbringing)
Its his money no matter from where he has earned it and where he wants to spend it, we are here to answer his queries and not tell him where else can we invest.
Totally my opinion.

As for the suggestion.
I would recommend him the BMW 530D Highline. Its an amazing car. Great engine + a Diesel. A Great style statement and is surely very classy.

A purely genius engine. Plus you have the maintenance package for 3 years from BMW where in he would not even have to spend 2 lakh every months for maintenance.
I'm not sure about the maintenance for 3/5 years but it would be close to 5 lakh i am assuming.
Only maintenance he would have to do would be fueling.

I think its really a great car for him and well under the 3 crore you have mentioned

Parm · 26th August 2009, 01:55

whats going wrong with guys loaded with $$$??

they are smart & intelligent enough to earn BIG $$ and cant decide on a damn car??

dude what ever you buy, dont buy a damn diesel and ruin you driving pleasure!

ThE Godfather · 26th August 2009, 12:35

Quote:

Originally Posted by abhinav.gupta88

I don't think we should comment on his business (self made / parental upbringing)
Its his money no matter from where he has earned it and where he wants to spend it, we are here to answer his queries and not tell him where else can we invest.
Totally my opinion.

As for the suggestion.
I would recommend him the BMW 530D Highline. Its an amazing car. Great engine + a Diesel. A Great style statement and is surely very classy.

A purely genius engine. Plus you have the maintenance package for 3 years from BMW where in he would not even have to spend 2 lakh every months for maintenance.
I'm not sure about the maintenance for 3/5 years but it would be close to 5 lakh i am assuming.
Only maintenance he would have to do would be fueling.

I think its really a great car for him and well under the 3 crore you have mentioned

Thanx buddy, he decided on 530D. Getting it booked in a couple of days.

Quote:

Originally Posted by loving_alaap

Corolla Altis / Civic (practically thinking) , Sonata / Accord (a bit on higher side) will be a nice option for that friend.

He can afford C / 3 / A4 too, but, better utilize that money in otehr investment (as these car depriciate like anything).

Better pospond the dream of C / 3 / A4 for 3-4 yrs. (may be after changing a job with good hike).

Quote:

Originally Posted by Parm

whats going wrong with guys loaded with $$$??

they are smart & intelligent enough to earn BIG $$ and cant decide on a damn car??

dude what ever you buy, dont buy a damn diesel and ruin you driving pleasure!

No.

Rodie09 · 26th August 2009, 13:23

I seriously feel that the title of this thread must be changed to something more suitable. Everytime I see this 2 lacs income thing , I feel its in bad taste and looks like a show off. We should remember that this is a forum and what we write here reflects the character of the community.

I'd suggest that thread be rather changed to reflect the budget - It wouldnt look bad even if its 10 crores. No offecne but a someone who is earning 2 lacs pm and cannot decide on his budget , then god help him.

ThE Godfather · 26th August 2009, 14:52

See buddy, a person, who is only 24 years only, earning 2lac per month, buys a car, which at a later stage, he cannot afford, wont be a wise decision.

Theres nothing to show off in this thread, this is a practical thread. Spending one time is'nt a problem for anyone, but keeping a car and bearing maintainance costs is something different.

I can quote you numerous replies here on TBHP, which actually is "a show off".

Even if it is a "show off" why should not he? Its a proud for a youngster of 24 to earn 2lacs per month on his own. How many you know are earning even 50k per month?

Its all about a practicality of asking a question, not showing off how much he is earning.

Its upto the reader how he gets the "REFLECTION" and "CHARACTER".

rageshgr · 26th August 2009, 17:17

Yay! Atlast he decided on the car that I was hoping and wishing he would he buy! the BMW 530 D! what a car!

22nd August 2009, 14:31	#61
ThE Godfather BHPian Join Date: Oct 2007 Location: punjab Posts: 213 Thanked: 6 Times	OH OK..! This would be a nice strategy.
	() Thanks

23rd August 2009, 02:03	#63
rageshgr BHPian Join Date: Jun 2008 Location: Chennai/Vaikom Posts: 549 Thanked: 553 Times View My Garage	Ha ha ! so according to entropy: in my case, my gross household income: 7.5 lpa 7.5.15 = 1.125 lacs ! But I already bought a Santro costing 4.6 lacs (61%) If you ask me, one can easily buy a car that costs 40-50 % of annual income. Higher income groups might even be able to shell out more % of their anuual income on car, as usual expenses may not increase linearly with income increase. Hey but your logic is cool too! It makes sure that maintaining and extra load of paying EMIs on your car does not put much strain your monthly budget. So by calculating reverse from the fact that you have Honda Civic, you must be making 1 crore per year! That's great going Man if I had 1 crore per year, I would drive nothing less than a BMW 530 D, or may be an M3 well dreams have wings but do not require fuel.. he he Last edited by rageshgr : 23rd August 2009 at 02:15.*
	() Thanks

24th August 2009, 09:22	#64
sgiitk Senior - BHPian Join Date: Dec 2007 Location: Gurugram Posts: 7,971 Thanked: 4,808 Times	3 crores will be whittled own ny Inflation. I remember seeing on the box a long time ago statements by both Manmohan Singh & Chidambaram that it you discount inflation then the real rate of return of retirement funds (which is what we are looking at with safe quasi-passive management) globally is only 3-3.5%. Thus 3 crores are generating a 'real' income of only 10.5 lacs at best.
	() Thanks

24th August 2009, 10:04	#65
shankar.balan BANNED Join Date: Apr 2008 Location: Bangalore Posts: 11,797 Thanked: 27,220 Times View My Garage Infractions: 0/3 (13)	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. then I would also like a nice anonymous looking Dark Green MM540/550DP work-horse and this, I would spend some money on, to make it a real off-road working monster - i would of course get it completely up to scratch mechanically and then pop off to that nice 4x4 off road shop near Museum Road in Bangalore, buy all sorts of 4x4 toys and camping equipment and enjoy. The rest of the cash I would invest and stop working and live a quiet life somewhere not too far from the hills, with my wife, my dogs, my books and I would play golf three of four days a week! probably buy a new set of golf clubs as well. And I would take one proper 30-40 day holiday every year to some place I ve not been to before. No harm dreaming I guess on a blighted Monday Morning! Last edited by shankar.balan : 24th August 2009 at 10:05.
	() Thanks

24th August 2009, 20:37	#68
rageshgr BHPian Join Date: Jun 2008 Location: Chennai/Vaikom Posts: 549 Thanked: 553 Times View My Garage	@rubin2006 "make sure u have proper investment so some day u are in category that u can use 15 % formula and get your dream car too " Awesome way to put it!
	() Thanks

25th August 2009, 23:51	#69
loving_alaap BHPian Join Date: Sep 2007 Location: Ahmedabad Posts: 808 Thanked: 9 Times	Corolla Altis / Civic (practically thinking) , Sonata / Accord (a bit on higher side) will be a nice option for that friend. He can afford C / 3 / A4 too, but, better utilize that money in otehr investment (as these car depriciate like anything). Better pospond the dream of C / 3 / A4 for 3-4 yrs. (may be after changing a job with good hike). Last edited by loving_alaap : 25th August 2009 at 23:52.
	() Thanks

26th August 2009, 00:33	#70
abhinav.gupta88 Senior - BHPian Join Date: Sep 2007 Location: Delhi , India Posts: 4,090 Thanked: 341 Times View My Garage	I don't think we should comment on his business (self made / parental upbringing) Its his money no matter from where he has earned it and where he wants to spend it, we are here to answer his queries and not tell him where else can we invest. Totally my opinion. As for the suggestion. I would recommend him the BMW 530D Highline. Its an amazing car. Great engine + a Diesel. A Great style statement and is surely very classy. A purely genius engine. Plus you have the maintenance package for 3 years from BMW where in he would not even have to spend 2 lakh every months for maintenance. I'm not sure about the maintenance for 3/5 years but it would be close to 5 lakh i am assuming. Only maintenance he would have to do would be fueling. I think its really a great car for him and well under the 3 crore you have mentioned
	() Thanks

26th August 2009, 01:55	#71
Parm Senior - BHPian Join Date: Jul 2008 Location: in a Toyota! Posts: 2,753 Thanked: 899 Times	whats going wrong with guys loaded with $$$?? they are smart & intelligent enough to earn BIG $$ and cant decide on a damn car?? dude what ever you buy, dont buy a damn diesel and ruin you driving pleasure!
	() Thanks

26th August 2009, 13:23	#73
Rodie09 BHPian Join Date: Jan 2009 Location: Pune Posts: 564 Thanked: 1,979 Times View My Garage	Why not tell your budget instead of income? I seriously feel that the title of this thread must be changed to something more suitable. Everytime I see this 2 lacs income thing , I feel its in bad taste and looks like a show off. We should remember that this is a forum and what we write here reflects the character of the community. I'd suggest that thread be rather changed to reflect the budget - It wouldnt look bad even if its 10 crores. No offecne but a someone who is earning 2 lacs pm and cannot decide on his budget , then god help him.
	() Thanks

26th August 2009, 14:52	#74
ThE Godfather BHPian Join Date: Oct 2007 Location: punjab Posts: 213 Thanked: 6 Times	See buddy, a person, who is only 24 years only, earning 2lac per month, buys a car, which at a later stage, he cannot afford, wont be a wise decision. Theres nothing to show off in this thread, this is a practical thread. Spending one time is'nt a problem for anyone, but keeping a car and bearing maintainance costs is something different. I can quote you numerous replies here on TBHP, which actually is "a show off". Even if it is a "show off" why should not he? Its a proud for a youngster of 24 to earn 2lacs per month on his own. How many you know are earning even 50k per month? Its all about a practicality of asking a question, not showing off how much he is earning. Its upto the reader how he gets the "REFLECTION" and "CHARACTER".
	() Thanks

26th August 2009, 17:17	#75
rageshgr BHPian Join Date: Jun 2008 Location: Chennai/Vaikom Posts: 549 Thanked: 553 Times View My Garage	Yay! Atlast he decided on the car that I was hoping and wishing he would he buy! the BMW 530 D! what a car!
	() Thanks