Thats right, but it's okay to have help from parents, their money is also ours and our money is also their- a family is family... Look for each others comforts ![[clap]](https://www.theautomotiveindia.com/forums/images/smilies/Clap.gif "Clap [clap]")
What Car Should Be Bought at What Income?
- Thread Starter TSIVipul
- Start date
Hehe.....I understand this pretty well. I stayed in Mumbai for 3 years and moved back to Chennai to stay with my parents 6 months back. Now, my savings are more than my income ![[;)]](https://www.theautomotiveindia.com/forums/images/smilies/Wink.gif "Wink [;)]")
Different people have different theories. I have always been advocating people to buy cars whose price is equal to their salary. But given higher interest rates and spiralling fuel prices,
OTR = (0.75 * CTC) is roughly what I believe it should be.
Deviations from this might be due to other commitments (house, children's education, investments etc). Some people think this is going overboard, but this is how I see it. If a person (single), earns 6L per year, 45 K per month roughly, he buys a car for 4.5 L and take a car loan for 4 L, his monthly EMI is going to be 10,000. Add fuel consumption of 4-5K per month and maintenance of 2K per month, he will be shelling out 16-18K per month for his car, i.e., 35% - 40% of his income.
Given that house and car are the two biggest expenses one incurs in his lifetime, I think this is fine. Some people say married men should take a more conservative approach given additional commitments, but if you consider an additional income (varies from case to case), it shouldn't matter much
OTR = (0.75 * CTC) is roughly what I believe it should be.
Deviations from this might be due to other commitments (house, children's education, investments etc). Some people think this is going overboard, but this is how I see it. If a person (single), earns 6L per year, 45 K per month roughly, he buys a car for 4.5 L and take a car loan for 4 L, his monthly EMI is going to be 10,000. Add fuel consumption of 4-5K per month and maintenance of 2K per month, he will be shelling out 16-18K per month for his car, i.e., 35% - 40% of his income.
Given that house and car are the two biggest expenses one incurs in his lifetime, I think this is fine. Some people say married men should take a more conservative approach given additional commitments, but if you consider an additional income (varies from case to case), it shouldn't matter much
Car should not be a big expenditure as it is a depreciating asset. I feel the car should not cost more than 6 month family income ...............
ps: we play it very safe. Our dezire is our 7 month family savings
ps: we play it very safe. Our dezire is our 7 month family savings
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Thread Starter
#125
Well,guys for the happy ownership of any car,here is what I believe:-
The EMI+Maintenance+Fuel bills+Insurance+Accidental repairs etc must not be anything more than 25% pf your salary if you are a married man and if you are single then upto 40%.
Else the car will force you to make cost-cutting in many important works.
Simple it is:
A guy earning 60k per month buys a Laura TSI and a guy earning 5 lac per month also buys the same car.
In the starting everything will go fine but when it will come to maintenance,accidental repairs etc,insurance premium and all then the 60k guy will break but the 5 lac earning guy won't even feel if the car has some expenses.
The EMI+Maintenance+Fuel bills+Insurance+Accidental repairs etc must not be anything more than 25% pf your salary if you are a married man and if you are single then upto 40%.
Else the car will force you to make cost-cutting in many important works.
Simple it is:
A guy earning 60k per month buys a Laura TSI and a guy earning 5 lac per month also buys the same car.
In the starting everything will go fine but when it will come to maintenance,accidental repairs etc,insurance premium and all then the 60k guy will break but the 5 lac earning guy won't even feel if the car has some expenses.
U r right vipul. Earlier people with 30-50 lac annual income used to buy a 10 lac car. Now a person with 10 lac salary is also buying a 10 lac car for status in office which is foolishness. Pvt jobs are very risky . U cant leverage so much for fake status
what about excluding EMI?? I believe if there is no EMI on car the monthly budget should not be very high. maximum 1/10 of take home salary that too of one person of family. Even these days maintaining two bikes are also costly.. We are having one ZMR and one Activa- Both has monthly run of 1500. It costs round 5600 only on fuel. Once we will have car in couple of months- I believe it wont increase much as car usage will be only for weekend :)
Recently my wife's admin assistant bought used Honda Accord Automatic for 2 Lakhs as previous owner bought Mercedes. Her salary is 40K. ![[frustration]](https://www.theautomotiveindia.com/forums/images/smilies/Frustration.gif "Frustration [frustration]")
I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
Recently my wife's admin assistant bought used Honda Accord Automatic for 2 Lakhs as previous owner bought Mercedes. Her salary is 40K. I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
haa haa. no offence about her love for Accord. but it's like haathi to kahrid liya , khilaoge kaise aur kitna. but one advnatage with car, don't use much if not meeting the expenses. I believe she must have alternative transport or her hubby must be a big shot :)
![[roll]](https://www.theautomotiveindia.com/forums/images/smilies/Roll.gif "Roll Eyes [roll]")
Neither her hubby is big shot, he works in similar capacity but yes have house (bought by her in-laws) so no EMIs.
It has more to do with the status symbol. Car is 10+ year old precisely 2000 model
In the same office: Another admin guy bought Swift VXi July 2007 model from same owner with 2.30 L. I found this as more sensible buy looking at his income. Seems guys have better rational
It has more to do with the status symbol. Car is 10+ year old precisely 2000 model
In the same office: Another admin guy bought Swift VXi July 2007 model from same owner with 2.30 L. I found this as more sensible buy looking at his income. Seems guys have better rational
Recently my wife's admin assistant bought used Honda Accord Automatic for 2 Lakhs as previous owner bought Mercedes. Her salary is 40K. I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
I doubt big time whether she will be able to maintain Accord. Average 5-6/liter petrol, maintenance, insurance and accidental repairs.
![[sad]](https://www.theautomotiveindia.com/forums/images/smilies/Sad.gif "Sad [sad]")
Its about prudent financial planning and prioritizing in life. You are doing what you think is right and I second you on this. No shame in having smaller car be Nano, 800 or Alto.
800 was best for any traffic situation, very humble, undaunted car and always love owner by not troubling ever.
800 was best for any traffic situation, very humble, undaunted car and always love owner by not troubling ever.
For married men, are you referring to 25% of his income or family income (his + spouse)? If it is the latter, it might still be 40% of his individual income; so it is the same as what it was before he got married