Car buying: When does brand value stop mattering & VFM factor kicks in

I had the money to fulfil my dream and even after getting a good discount on Audi and BMW, I ended up buying the Mahindra XUV700 and I feel happy to have saved a good chunk of money.

BHPian marinerandy recently shared this with other enthusiasts:

Hello, fellow BHPians.

I have a query -

• How many of you downsized on engine power while purchasing or replacing an existing car?
• At what price point for you all (individually) does brand value stop mattering and the value for money factor kicks in?
• Does the above questions have age factor associated, below 35 and above 35 years of age?

A small prologue for asking these questions-

I am 43 years old sailing in the merchant navy as chief engineer. As a normal human I also have aspirations for any engine-propelled object running on the road, be it on 2 wheels or 4. And also as a normal human, I had my fair share of responsibilities with limited earnings which restricted my spending capabilities at an early aspirational age.

Once my salary and responsibilities started reversing the course on the spending spectrum, I ventured out to fulfil my dream of owning a luxury car. So I booked a BMW X3 M 30i in March of 2022. But as luck would have it, I got a sweet deal on a flat in Bengaluru and once again I had to contend myself with killing my aspiration on the virtue of generations-old appreciating and depreciating asset theory. Now after almost 2.5 years I again have the money to fulfill my dream of owning a car out of Big 3 German stable, but my thought process has changed for good. Even after getting a huge discount on Audi and a fare discount on BMW, I ended up with XUV700. Although the XUV700 is top-spec trim with AWD, I feel happy to have saved a good chunk of money.

Now I wonder on what has changed in past 2.5 years to alter my decision from brand aspiration to VFM product? Am I alone going through this transition or is it a normal trait which sets in after certain age or circumstances?

Here's what BHPian alpha1 had to say about the matter:

For that first question would be to ask your younger self why he was bent upon purchasing a "luxury" marque. Many times it is society's marketing to make you keep working hard, keep accumulating wealth, and keep spending on expensive items, and keep feeling miserable.

In general, I have observed that when we are younger (the peak is during teenage) we tend to be extremely influenced by peers/groupthink. And as we age, we become less inclined to sway to other people's opinions and discover ourselves, form our own genuine likes and dislikes.

Here's what BHPian OpenRoads had to say about the matter:

1) As we progress financially, it's usually upsize or upgrade. However, downsizing can be the result of two scenarios:

• Financial constraints/optimizations
• Next level of maturity to understand one's actual need or change of priorities in life.

2) Price point is always fixed based on one's financial situation. It can be 5 or 50 lakhs. But once that point is determined we always seek the best we can get within that limit. If VFM is a thing then Tata Nano or Maruti Alto has already shown it.

3) Absolutely YES! And it's not just limited to below 35 or above 35. I remember as a kid collecting name stickers with pictures of supercars. As I grew older those supercars became a good thing to watch on television and appreciate. But owning/buying a car for myself/family was tied up with all indivisible strings of priorities in an ever-changing life.

Here's what BHPian sunikkat had to say about the matter:

• I would not downsize my car on performance unless there is a strong reason financially. If I can’t afford a higher-performing car, I would rather keep my current car as much as possible. For me while changing cars one should feel special.
• For me, the price point is affordability. I don’t buy a brand just because of the brand value, so the first parameter will be performance and other priorities that I have. For that matter, even a brand can be VFM depending on your priorities. For example: I wouldn’t buy a new X1 over Kodiaq or Tiguan for its underperforming engine but would happily increase my budget for a 3 series. But brand plays too, for example (no offence to anyone), I wouldn’t buy a Hyundai, Kia, BYD etc. at 40 lakhs and above.
• Age can play both positive and negative in my spending on cars. As with age if my commitment increases my spending will reduce but if my income increases my spending will increase too.

Check out BHPian comments for more insights and information.