What Car Should Be Bought at What Income?


Joined
Feb 7, 2012
Messages
196
Likes
62
Location
TN06 Past MH01,AP10
ok so now my dads income is around 75k
the company is paying for the car so i dont have to shell out any money(MAX 8.5 LAC+my dads money)
Maintenance + ice etc my money!!
petrol company is paying
just done with housing loan.
so which car??
 
Joined
Feb 9, 2012
Messages
204
Likes
42
Location
NA
I read lot of useful data points based on experiences which have been quoted. Having bought couple of vehicles, I would share that I do prefer cash payment. Also my read is that one is ready for a particular bracket if he/she can write off the full amount within (say) couple of months without worrying about re-sale value etc.
 
Thread Starter #65

TSIVipul

Honoured Member
Joined
Aug 6, 2011
Messages
6,183
Likes
4,188
Location
Meerut, U. P.
ok so now my dads income is around 75k
the company is paying for the car so i dont have to shell out any money(MAX 8.5 LAC+my dads money)
Maintenance + ice etc my money!!
petrol company is paying
just done with housing loan.
so which car??
Buddy no problem,since there are no other liabilities left,so why not a City?Just go and get one.If company is paying for fuel,then just get the car as the highest of the expenses won't be paid by you.

I read lot of useful data points based on experiences which have been quoted. Having bought couple of vehicles, I would share that I do prefer cash payment. Also my read is that one is ready for a particular bracket if he/she can write off the full amount within (say) couple of months without worrying about re-sale value etc.
Well,thanks buddy..:biggrin:
Its really glad to know that a small experience by me is coming true and is being verified by people with a lot more experience in life than me.
Yes,I agree with you on the resale value part.If resale value of your car really makes you think twice or thrice then it simply means that you have made a mistake while buying the car and you are definitely living with a wrong car.
 
Joined
Oct 27, 2011
Messages
814
Likes
34
Location
Bangalore
This is an excel thread. Making a lot of sense and infact pinch the reality so close that you imagin self in the situation. great work guys.
i have quick question. By looking at this income versus purchase decision, Would anyone like to suggest going for a 2nd? I mean lets say some one income is in bracket of 90 to 1L/month. Why not look at a good condition second than going for an expective 1st.
 

Vishwas

Moderator
Joined
May 11, 2011
Messages
4,090
Likes
948
Location
Bangalore
This is an excel thread. Making a lot of sense and infact pinch the reality so close that you imagin self in the situation. great work guys.
i have quick question. By looking at this income versus purchase decision, Would anyone like to suggest going for a 2nd? I mean lets say some one income is in bracket of 90 to 1L/month. Why not look at a good condition second than going for an expective 1st.
No problem you can go with it and infact it benefits you provided you keep it for a short term because used cars have lesser depreciation rates,on the flipside it will be troublesome if you are going with loan options because of higher interest rates(Depending on how much money you spend).

P.S: Going for used cars upto 5 lakhs will be good, you should plan more carefully before investing >5L(i.e., should keep every aspects in mind like Maintenance, Resale Value,Insurance Spares and services etc...)
 
Joined
Feb 9, 2012
Messages
204
Likes
42
Location
NA
If I understand the perspective of this thread's subject, I would think the question is less around old or new car, but more around affordability of a vehicle at what income levels.

So assuming this is the case, one would normally want to be able to afford a new vehicle with the used ones more to practice or probably use as a second car in the family. Having said that the point is correct that buying power should also include good used cars in the review.
 
Joined
Jun 21, 2011
Messages
329
Likes
11
Location
New Delhi
Vipul
Interesting discussion and could resist my self from jumping in.
With monthly income of Rs 1.5-1.8 L, 30 K house loan EMI, 20 K rent, Tax of Rs 12 K (all per month), savings of 35 K, Delhi's cost of living (excluding housing) which car make sense.

Hatch (top of line) would be good enough or sedan with fuel choice of either petrol or diesel.
 
Joined
Jun 21, 2011
Messages
329
Likes
11
Location
New Delhi
Vipul
Interesting discussion and could resist my self from jumping in.
With monthly income of Rs 1.5-1.8 L, 30 K house loan EMI, 20 K rent, Tax of Rs 12 K (all per month), savings of 35 K, Delhi's cost of living (excluding housing) which car make sense.

Hatch (top of line) would be good enough or sedan with fuel choice of either petrol or diesel.
 
Thread Starter #73

TSIVipul

Honoured Member
Joined
Aug 6, 2011
Messages
6,183
Likes
4,188
Location
Meerut, U. P.
Vipul
Interesting discussion and could resist my self from jumping in.
With monthly income of Rs 1.5-1.8 L, 30 K house loan EMI, 20 K rent, Tax of Rs 12 K (all per month), savings of 35 K, Delhi's cost of living (excluding housing) which car make sense.

Hatch (top of line) would be good enough or sedan with fuel choice of either petrol or diesel.
Monthly income=1.5-1.8 lacs so let's take an average 1.65 lacs
House loan EMI=30k
Rent=20k
Tax=12k
Savings=35k
So on total we can say that you have 68k as the final amount.

Now first of all,what is your marital status?How many members are there in the family?
What are the expenses of those members?(like medical expenses for parents,schooling and transportation for kids etc etc)

Overall in my views after cutting all your expenses you maybe having something 30-35k max for the car's expenses to be completely tension free.

At this amount,you can buy any car under 10 lacs.why?Because this amount is more than enough for buying a Vento.How?
Vento:About 11 lacs on road Delhi.
You can't buy it on cash because your CA has shown your income this way,else you will have to pay upto 1.5-2 lacs extra as tax.Or say as per your ITR your taxable income is not more than 9.5-10 lacs and if in such a case you buy a car of this price for cash then you are definitely trapped.Rest have a look at your form 16,it speaks everything.
Now coming to the point:
Vento:About 11 lacs on-road Delhi.
You will pay 3.5-4.5 lacs down payment(it will be best considering the tax).
Now you will get it financed for 5 years so on this amount your EMI may come out about 15-20k per month.
Now you still have 15-20k for your running and maintenance and this can be easily done at this amount.
Same way you can go for eve a City too,no issue at all as your car's expenses coming out are enough for a petrol hatch too.
Rest look at your running,if its above 2000kms per month then go for diesel,else go for petrol car,rest is on your wish(I am driving Laura Petrol at 5-10k kms per month running).

Now its upon you to decide your car because as per my study,you can buy any car in this price basket(11 lacs and below).
 
Joined
Jun 21, 2011
Messages
329
Likes
11
Location
New Delhi
Monthly income=1.5-1.8 lacs so let's take an average 1.65 lacs
\So on total we can say that you have 68k as the final amount.
Vento:About 11 lacs on road Delhi.
Now coming to the point:
Vento:About 11 lacs on-road Delhi.
You will pay 3.5-4.5 lacs down payment(it will be best considering the tax).
Now you will get it financed for 5 years so on this amount your EMI may come out about 15-20k per month.
Now you still have 15-20k for your running and maintenance and this can be easily done at this amount.
Same way you can go for eve a City too,no issue at all as your car's expenses coming out are enough for a petrol hatch too.
Rest look at your running,if its above 2000kms per month then go for diesel,else go for petrol car,rest is on your wish(I am driving Laura Petrol at 5-10k kms per month running).

Now its upon you to decide your car because as per my study,you can buy any car in this price basket(11 lacs and below).
Married, no kids, father is in govt. job and will retire in 2018, stays in different state, so no medical expenses per say, no education expenses.
Monthly travel expenses are 5-6 K.
keen on diesel due to low FE and plan to keep car for 5 years with monthly running of 1500 kms at the moment but will increase once move to own flat which is under construction will take two years. Future monthly run will more than 2000 kms.

Negative Consumption: No boozing, fagging and narcotics etc.[:D]
Parking should be hassle free and in case of sedan, its little difficult to park in Delhi so preferably hatch or suggest.[confused]
 
Thread Starter #75

TSIVipul

Honoured Member
Joined
Aug 6, 2011
Messages
6,183
Likes
4,188
Location
Meerut, U. P.
Married, no kids, father is in govt. job and will retire in 2018, stays in different state, so no medical expenses per say, no education expenses.
Monthly travel expenses are 5-6 K.
keen on diesel due to low FE and plan to keep car for 5 years with monthly running of 1500 kms at the moment but will increase once move to own flat which is under construction will take two years. Future monthly run will more than 2000 kms.

Negative Consumption: No boozing, fagging and narcotics etc.[:D]
Parking should be hassle free and in case of sedan, its little difficult to park in Delhi so preferably hatch or suggest.[confused]
Then your car expense can be increased even more.So you are single and if you want a hatch then why not a hot hatch like Polo 1.6 or Fabia 1.6,both are the most powerful hatches and are fantastic to drive wherever you want,either city or highways or hills.Both are very comfy,fun to drive and with your running and income,it should give no issues to you.
Still,about parking I'd say "two days out of my weekly drive pass in Delhi and rest five in congested(slightly)Jaipur and Meerut but still no parking issues faced yet.Yes,with SUV's the parking can be an issue but with sedans its not really that big issue as it seems to be.
 
Top Bottom