What Car Should Be Bought at What Income?


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Biggest problem is now a days boys in MNC just joina job of 4-5 LAcs and buy a car on loan for show off. This is a major reason for increasing car sales-------------- increasing car defaults [glasses]
Second is people want to just prove i am richer and mad race for bigger cars which in many cases becomes suicidal.
Swift selling more than alto is a classic example. Even people low on budget who just can buy a entry level start want to buy a car double the price coz of fear of social stigma per se with alto.
 
Thread Starter #107
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Having said this, many people fell pray to snob value neglecting their financial liabilities and income. Often outcomes are disastrous.
Actually now every person wants glamour in whatever he/she does.If the husband buys an Alto from his heard earned money then his wife is upset and if wife is happy then the kids are upset.At last the man is forced to jump his true budget even after knowing that this is going to bite him hard and buys a wagon-R.
Now the Wagon-R has higher running costs and more pricey spares but only for the so-called fake repo of his family the man is now under a loan of a lac more..[frustration]
On the second side are the kids,who as soon as they get the Job they first of all let the transactions go high for six months and then a good car loan and who is the guaranter..again the poor daddy..
And then this snob value bites them hard,now if the already emptied daddy has enough cash to pay for the child's car then okay else after some bitter family quarrels the car oes to market 'FOR SALE'.
Although the above lines of mine are quite bitter but as per some new observations of mine,this is proving 100% correct in at least 90% of cases.

In my views:
Top priority: House,
Second priority: Mobility
Third: Life style.
If I have big enough house then only will go for a fancy/expensive car otherwise will be contended with sedan or Indian SUV at max. These are personal views. I want a personalized mode of transport which should take me from Place A to place B with comfort and safety, thats it. Any car within my means (TCO) is welcome and criterion will change as we move up the income chart.
+100,same here..
People who think that cars are a way of showing off,go overboard and buy the cars.
But smiling owners are always those who have bought the car after outlining their needs with their budget and then buy the car.

Biggest problem is now a days boys in MNC just joina job of 4-5 LAcs and buy a car on loan for show off. This is a major reason for increasing car sales-------------- increasing car defaults [glasses]
+100,as already mentioned by me:Most of the people whose installments break are the private workers and amazingly they have got the biggest of the car loans.

Second is people want to just prove i am richer and mad race for bigger cars which in many cases becomes suicidal.
Swift selling more than alto is a classic example. Even people low on budget who just can buy a entry level start want to buy a car double the price coz of fear of social stigma per se with alto.
Buddy one more factor is the age and 'GIRLS'[evil].
If a beautiful girl is your officemate and she tells you that she likes Swift more than Wagon-R then the guy just to impress her will get the Swift.
Now to impress the same girl if one friend of her has got a swift the another one will get a DZire to show that who is the boss?
In other words the competitions are going on between people,but they themselves don't know what will be the ending prize of the competition.A city bus or a happy ownership with ambitions fulfilled(which seldom happens).
 
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Arm candy girlfriend/wifey/female colleague do have impact on men's spending. If someone is newly married, chances of going bankrupt (zero balance economy) is very high. Dining out, driving on weekends, in-law's visit and their hospitality, gifts, ornaments for birth day, anniversary, valentine day, akhshya tritiya, dhanterahas, karwa chouth etc to name few.[frustration]
End result, poor chat end up spending more than thrice what he was spending before marriage, zero savings, and after a year or two same old rant, wifey want own dream house.[cry]

Note: This doesn't happen with everybody. I don't want to sound like MCP, there are sensitive girls/wifey.
 
Thread Starter #109
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Arm candy girlfriend/wifey/female colleague do have impact on men's spending. If someone is newly married, chances of going bankrupt (zero balance economy) is very high. Dining out, driving on weekends, in-law's visit and their hospitality, gifts, ornaments for birth day, anniversary, valentine day, akhshya tritiya, dhanterahas, karwa chouth etc to name few.
Dunno why,but i can smell the pain of a newly married man..[;)],still you are exactly at the point.
This all is a result of just one small mistake and the mistake is 'no-financial planning'.

End result, poor chap end up spending more than thrice what he was spending before marriage, zero savings, and after a year or two same old rant, wifey want own dream house.[cry]
What a catch buddy,this time I am thinking of where the IRON ROCK is?At such times,he presents some true gems of experience..[lol]

Note: This doesn't happen with everybody. I don't want to sound like MCP, there are sensitive girls/wifey.
BTW,what is MCP?
 
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Dunno why,but i can smell the pain of a newly married man..still you are exactly at the point.
This all is a result of just one small mistake and the mistake is 'no-financial planning'.


What a catch buddy,this time I am thinking of where the IRON ROCK is?At such times,he presents some true gems of experience..


BTW,what is MCP?
I am married for 6 year now. Mine was a child marriage before the age of 25 (by choice)[lol]
Seriously, I have seen many people suffering because of lack of foresightedness and prudent financial planning.

Male sovereign pig (MCP)[evil]
 
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Now a days media is also corrupting minds.
You see articles on valentine day,mother,father,sister , friends ........... so many
Pizza hut type advertisements where wife burns food and they eat pizza everyday
MNC banks making people addicted to easy loans and this mad consumerism will make India a debt ridden society like USA one day.
Secondly people are spending huge amounts on saloons, dining, movies etc etc
I mean savings now a days are very low of working couples especially. I feel MNC people are the hardest hit as they mostly bite more than they can chew

This in turn causes heartburn among others and overall there is no sense of satisfaction among people in India.
 
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I am married for 6 year now. Mine was a child marriage before the age of 25 (by choice)
Wait for 2-3 years and I'll also join your group of child-married people...[:)]

Seriously, I have seen many people suffering because of lack of foresightedness and prudent financial planning.
Do you remember the impact of last recession on most of the young professionals?That's the effect of inefficient financial planning that half of them were unable to maintain their lifestyle for even a month or two.

Male sovereign pig (MCP)[evil]
It really creative..[clap],but shouldn't it be MSP?

Now a days media is also corrupting minds.
You see articles on valentine day,mother,father,sister , friends ........... so many
Pizza hut type advertisements where wife burns food and they eat pizza everyday
MNC banks making people addicted to easy loans and this mad consumerism will make India a debt ridden society like USA one day.
Secondly people are spending huge amounts on saloons, dining, movies etc etc
I mean savings now a days are very low of working couples especially. I feel MNC people are the hardest hit as they mostly bite more than they can chew

This in turn causes heartburn among others and overall there is no sense of satisfaction among people in India.
Haha,+100..
Each and every word said by you is spot on.
This will show its effect if the recession again comes.Like in US this time it will hurt India's economy too far worse than the first one(BTW recession gave us many benefits like subsidies and loans at 0% etc..an advantage of being businessmen).
 
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Btw,MCP=male chauvinist pig!

Regarding the income part, during the 70s and 80s, most people used to buy a house only at the fag end of their career, just4-5years before thir retirement with all their savings, nowadays, it's the opposite, people buy a house just4-5 years into their career on a loan on interest. Of course, a house gives a lot of pride, satisfaction, security etc. And is a very good investment in the long run. But, if you are looking at it only as an investment, then an investment is worth it only if you sell it and enjoy the fruits for some other requirement. Nobody sells their house mostly. It's only their dependents who sell it later and enjoy the benefits. Then it is of no use to you, but only to your dependents.

These are my personal views only and just a thought for all to ponder!

Why not stay in a rented house and keep the extra cash, don't pay interest, rather start earning interest for a change. You can keep the cash for some emergencies or maybe splurge it on yourselves or save in some other form which can be liquidated in case of an emergency. Zindagi na milgi dobaara....[;)]
 
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Btw,MCP=male chauvinist pig!

Regarding the income part, during the 70s and 80s, most people used to buy a house only at the fag end of their career, just4-5years before thir retirement with all their savings, nowadays, it's the opposite, people buy a house just4-5 years into their career on a loan on interest. Of course, a house gives a lot of pride, satisfaction, security etc. And is a very good investment in the long run. But, if you are looking at it only as an investment, then an investment is worth it only if you sell it and enjoy the fruits for some other requirement. Nobody sells their house mostly. It's only their dependents who sell it later and enjoy the benefits. Then it is of no use to you, but only to your dependents.

These are my personal views only and just a thought for all to ponder!

Why not stay in a rented house and keep the extra cash, don't pay interest, rather start earning interest for a change. You can keep the cash for some emergencies or maybe splurge it on yourselves or save in some other form which can be liquidated in case of an emergency. Zindagi na milgi dobaara....[;)]
Actually maybe you are right and maybe you are wrong.
House is something which doesn't depreciate.Its price always increases with time and there are thousands of people who are rescued by their own house at the time of financial emergencies and amazingly even after that they are left with enough money to buy a smaller house.
While living on rent and owning the own house are nearly equally expensive.How?
The same amount you can pay as your home loan installment as you are paying on the name of rent,at least after 10 years the person will have his/her own house while if the same person lives on rent then he/she will be spending far higher money but at the end of life he/she will have very less on the name of his/her lifetime's income.
So,own house is the biggest security in my views.
 
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I feel these 95% car loan should be abolished.
Minimum 30-40% margin from buyer side should be there like home loans.
This will deter people going overboard.
 
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Definitely,this 95% car loan or schemes like loan at 0 down payment must be abolished.
People don't understand the fact that bigger the loan higher will be the amount paid by you on the name of interest.
Secondly paying a down payment is far easier that maintaining the heavy installments.No person in the world has a stable or financial position where his/her financial condition remains same throughout the year.Instead it keeps on varying every month.So instead of 95% loan amount must not be higher than maximum 60-70% of the car's price.
 
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All my friends in the US and Europe buy second hand cars, it's only a very meagre number of people who buy new cars. Why so? Head is working, but not in India. I think some of our abroad friends in TAI can also throw some light on this.
 
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This is really interesting thread, I am feeling as if getting some saving tips from my father. This is how our parents had planned and put us in a comfortable position because they were aware of their limits and loan was never their cup of tea. Their concept was 1st you save then you buy it made the finacial foundation sound and you can meet the emergency requirement.

Now a days we 1st pay EMI then we go for monthly grocerries [cry].. This is how we are used to. Since we all are paying our Home Loan and all so think twice before purchasing a high end car and that too on loan. I was eligible to buy a nice hatch back 3 years back still managed on bikes. Instead of buying a car 1st I tried to minimise the loan that too adviced by dad as he says in bank you saving will get you 8% but Loan it takes 12%, poor consumers.

Car should be definately purchased when you got your house. Now I have booked my car and planning to buy with savings and by help from parents saving. At least I will not be bother for paying one more monthly EMI :).

This is my personal opinion.Every one has different idea of life and life styles. If someone is very passionate for Car then he will think otherwise anyways life has to be lived (Zindagi Naa Milegi Doobara- but it's looks better in bollywood only :) )
 
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One more thing
People stay away from parents. if you live in your home town with parents u can easily add + 50k p.m to your salary as compared to living outside hometown.
 

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