What Car Should Be Bought at What Income?

[TSIVipul]

I didn't read all of the thread, but here's a query:

My cousin earns about 50k per month, and has no liabilities/loans on him. He isn't married, and everyone in family is working. What cars should he look at? He isn't going to take loans, has money already for car, just maintenance is problem. :P

50k per month means, a package of 6 lac per year..okay.
No liabilities, no family nothing...hmmm, sounds interesting.
No loans etc means the guy will always have an advantage that he won't have that extra burden over his shoulders. If I'd have been at his place then my choice would have been a premium hatch or a sedan like City, Fiesta etc or even an entry level SUV like Safari, Scorpy whatever comes under 12 lacs.
Buying a big car isn't enough, there is nothing with running too- 'just add the fuel and press on the gas'. What causes the problem is the maintenance, accidental repairs and insurance premiums etc and looking at these factors, any person earning upto 40-50k must not go too high while purchasing.

Wonderfull thread, I think this thread was created an year back when value of currency was about 10% more than today's value. I was in the bracket of punto, swift etc.. if I purchased it last year. Now I can aford a wagonR as per the calculations the thread start with, which I am having now.
My heart is up for a BRIO which is beyond my monthly income as I hold a Homeloan repayment about 26% of my montly Salary. After deducting my EMI, I am falling into the class who can afford an Alto now. But I have a wagonR with me now and still trying to go for a BRIO
Listen to Heart or live up the present?

26% of salary goes to home loan..no issue.
Though you fell into Alto category, not you can plan it another way too if you wanna go for Brio and move ahead taking the overall expenses and net savings in consideration.
Rest if I am being asked then sorry for heart breaking words buddy, but in case of financial matters I prefer mind over heart.

Good thread Vipul !!

After reading all the pages, most of the experiences are same and most of the cases shows that people have opted more than what they want.

So keeping all the calculation aside, I always feel and follow one thing whenever I buy either a car or something else

Buy just according to your need and not according to your desire !! believe me you will be very very comfortable in life !!

Sir actually the problem is that people consider their desire to be their need and hence neither they are able to fulfill their need completely, nor they are able to live their desire.

 

[Gurrala74]

@Vipul

+100, yes people always think that their desires are their needs and keep running behind them always till the end of their lives and at times they also feel that they are unable to fulfil their needs

 

[Username]

50k per month means, a package of 6 lac per year..okay.
No liabilities, no family nothing...hmmm, sounds interesting.
No loans etc means the guy will always have an advantage that he won't have that extra burden over his shoulders. If I'd have been at his place then my choice would have been a premium hatch or a sedan like City, Fiesta etc or even an entry level SUV like Safari, Scorpy whatever comes under 12 lacs.
Buying a big car isn't enough, there is nothing with running too- 'just add the fuel and press on the gas'. What causes the problem is the maintenance, accidental repairs and insurance premiums etc and looking at these factors, any person earning upto 40-50k must not go too high while purchasing.

Thanks for your reply. The bold part is exact reason this question was asked.

 

[TheDarkKnight]

Remember Harry Porter?

You dont choose the wand but wand chooses his master.

You dont choose the car but car chooses its master.

I think Transformers is an apt comparison where Sam goes to buy the classic camarro.

And as someone pointed out, Insurance is always a pain. My salary is 4 times what it used to be when I first bought my car and still its a pain to have to pay it thrice till date and not claim anything

 

[RPM2500]

One thought which always runs through my mind -

Don't run behind your desires all the time; instead worry about earning more money, your desires will automatically be taken care off !

Doesn't work vice-versa !

 

[Username]

I think Transformers is an apt comparison where Sam goes to buy the classic camarro.

And as someone pointed out, Insurance is always a pain. My salary is 4 times what it used to be when I first bought my car and still its a pain to have to pay it thrice till date and not claim anything

You should be happy you didn't have to claim it & your car is running problem-free.

 

[brandoo]

Simple logic,
Any car which takes you from point A to B with comfort, safety and without trouble should do the work. Having said this, decide based on your choice/taste and budget.
Always under play.
TCO for 1000 kms/month (Hatch):
Service Cost: 5000+ (every 10 K/kms)
Insurance: 15000/ anum
Tyre: 22000 (for 40K):
Running Cost: 3000-5000 (depending on fuel type)
EMI: 2200/ Lakh (approx)

All this should not exceed 20% of one's net come income after mandatory savings, tax etc (family income) or at max 25%.

 

[prashant10]

Hi Guys,
A very good and informative discussion,
after all my expense like loans and Household expense I save upto 10K PM.
I bought a second hand i10 by paying from my pocket,
My monthly avg run is 400 - 500KM. so will you consider it was a wise decision or did i stretched too much,earlier I used to have a 9 year old M800.
TIA

 

[alexddas]

Hello friends,

I have observed that many of the new buyers are confused of what car they should buy,I mean that the people many times by mistake buy a car from a segment higher than they should buy and after that they complain about the high maintainance cost and high service costs of the car.Here is an example:-
...
Rest now you can also think of a Vento,Linea,Honda CITY(really heart ruler),Hyundai Verna(most tempting buy) and SX-4(most sensible buy),but now car's expenses will effect your budget. Now Scorpio or Safari or Innova can also be added.

REST TO FOLLOW SOON,WAITING FOR THE REAL LIFE EXPERIENCES OF CASH AS WELL AS LOAN BUYS OF MY SENIORS AND FRIENDS....(I bought all of my cars for cash and feel it the best,note:it is my personal opinion.)

Guys the guy mentioned above was able to buy a wagonR after swift, its only because it was a swiftD as it has a good re-sale value and so along with the budget that suits you go for a good car with a good re-sale value.

 

[Username]

Guys the guy mentioned above was able to buy a wagonR after swift, its only because it was a swiftD as it has a good re-sale value and so along with the budget that suits you go for a good car with a good re-sale value.

Yes, if you are planning to buy the car for selling it. If you want to drive it, just check the budget. :|

 

[P3T3R]

go for a good car with a good re-sale value.

True, if your primary reason for buying the car is to sell it for a good price. I buy the car to USE and ENJOY USING IT!.

 

[alexddas]

True, if your primary reason for buying the car is to sell it for a good price. I buy the car to USE and ENJOY USING IT!.

Guys you are not marrying a car its not a wife,
you have to sell it anyday, its a machine you own, you can exchange it or you can go for another new one.
so buy a good car with in your budget enjoy it and sell it in good price so that you can look for a new one by raising a small budget next time.
So resale is a point to be considered too.

 

[gaurav01]

yes sir ,i am agree with you on your post. but if one can manage funds or adjoin some family member to sum-up the income he or she can afford the higher budget car or they can go for the option of Car Loan.

 

[krismp]

yes sir ,i am agree with you on your post. but if one can manage funds or adjoin some family member to sum-up the income he or she can afford the higher budget car or they can go for the option of Car Loan.

Hi Gaurav. As you said, you might cover the cost of the car itself. But a higher-budget car will also cost more to run in terms of service cost, insurance etc. This could be where a person, who goes for a car he or she cannot afford, will take a hit.

 

[AMG]

Worrying about accidents is outright stupid.
One doesnt crash everyday!
And if one does happen to suffer a serious shunt, well, claim insurance cover.