Which car would you buy at what salary range in India?

A car is much more than a depreciating effort. It is a major part of your road-trip vacations. It becomes a part of your memories.

BHPian dicor recently shared this with other enthusiasts.

Question: What car what salary?

The question should be

What car? What salary? What age? and What is your passion?

Case study 1:

Me being a petrol-head since childhood. I was 23 years old when I had started earning.

• Age 23: I was earning 7 thousand per month when I bought a used hatch at 1.45 lakhs. (2X of my annual salary)
• Age 31: I was earning 8 lakh per annum, I bought a sedan which was 9.5 lakhs on road. (1.2 x of my annual salary)
• Age 35: I was earning 21 lakhs per annum, I bought a big crossover which was 19 lakh on road. (0.9 x of annual salary)
• Age 42: I make 52 lakhs a year, and if I were to buy a car right now, I wouldn't shell out more than 20 lakhs for it. (0.4 X of my yearly salary)

Despite being a car enthusiast, I've begun to appreciate the distinction between assets and liabilities. I now priorities things like my children's future education, saving money for the care of the elderly, a better home, and yearly vacations.

Case Study 2:

A resident in my building, owns 4 vehicles. He is real estate developer. The cars he owns in a family of 4 are

• A 2010 model Toyota Fortuner
• A 2016 ML 250
• A 2021 Innova Crysta
• A 2021 Santro

Even when I add together the costs of all these automobiles, it still comes to less than 0.1 X of his yearly income.

Case Study 3:

A Thakur sahab of my tehsil (and relative of a member on this forum). Monthly income (unknown), Net woth (few crores). Vehicle he own

• A 6 decade old Willys Jeep.
• MM540 Jeep

• Scorpio-N
• 3 Tractors

According to what I understand, spending power is determined by priorities and interests. not income.

Here's what BHPian anshumandun had to say on the matter:

I don't calculate this in terms of net worth and CTC etc. I just see what EMI I can afford easily for 5 years. I keep cars for 8 years minimum so I finish the EMI by end of 5 years and 3 years without emi.

If I were to be extremely financially prudent and buy a car without having to pay EMIs, I would be driving cars that score poorly on safety, experience and driving pleasure. What good that life be for people like us who enjoy driving and riding?

A car is much more than a depreciating effort. It is a major part of your road-trip vacations. It becomes a part of your memories. It takes you on journeys that you remember for a long time. If I look back at my photos with friends with family, there is always a car that took us somewhere. You can't put a price to that.

Here's what BHPian na_agrawal had to say on the matter:

Going by this recent posts/discussion on this thread, am I right if I conclude that -

Some of my senior colleagues who are driving a BMW X1 or Mercedes C 200 are earning atleast 2Cr per annum??

Secondly, the colleague who sits just 2 places besides me, bought a 25L Alcazar. He must be earning atleast 1Cr.

I know wife/kids/home/emis/other aspirations do come into the play and along with family heirloom and side businesses, but still, its a bit incomprehensible for me (26 yo with 5 y work exp).

...and have I made a huge grave mistake by spending 90% of my annual income in procuring a VW Vento last year? Only healing balm is the fact that I didn't take any loan. Phew...

Here's what BHPian DDIS_RE650 had to say on the matter:

I have one philosophy, keep yourselves debt-free. A Car should not be more than 6 months' net salary and a home not be more than 5 years' net take home.

You should be able to close a car loan within one year and a home loan in 5 years.

Never say yes to any personal loan, settle credit card due before salary credit day and pay EMI or SIP during 1st week of month.

Maintain 1 or 2 bank accounts and only 1 credit card for ease of transactions.

I always believe, that none of the bank credit card offer is worth getting additional card.

Note : This is only applicable to taxable salaried people. For business men they have the option to declare losses, and expenses and buy assets to save taxes.

Read BHPian comments for more insights and information.

Never have more than the required fun/luxury on borrowed money.