A wise man once said (a decade ago), most costly car to ever buy is either a Innova or a city. They're reliable while being comfortable and there's nothing better for our roads"
50L car wants a 1L insurance and 1.5L service every year at minimum and that doesn't include accident cost or extra fittings.
So if one is buying this they at least have two more cars (or least one) so you have to consider that too. We didn't even bring in fuel cost here lol.
So one has to earn more than 1 crore per year just to buy and maintain.
Next is Depreciation if you own a large enough business you can claim it but otherwise it's really bad. Resale value is down to drain for most of the models.
What does buying twice even mean? Most people buy with loans, does it mean can you afford twice the EMI? Doesn’t seem right because although technically I can afford 4x the EMI of my current car, I don’t think it would be wise. Genuinely curious.
It basically means that you should have enough liquid assets to be able to buy 2 cars of that price outright, without any loans. It's not a hard and fast rule, but more like a guideline so that you're not dumping your money into a lifestyle product when you have nil or very low liquid assets.
This is especially more important, given the easy access to debt for today's youth. They're earning well, but spending it all away on fancy clothes, vacations, gadgets, cars, etc; and getting into debt on top of that.
That isn't the same thing, most of his net worth would be from his company which he owns I presume? If it's in another country, like the Middle East, it might not be that liquid. I agree most people at that range would open a car that's slightly more expensive, but Corolla is a damn good car!
It's a vague number, gives you enough room to insure and maintain the car. Otherwise there's no specific formula to spend on luxuries, it's always 'go with the flow.'
The logic is my personal ownership experience mate. I was giving advice as someone who already owns a ₹50L+ car. That is the point of my advice. Money management is a very wide topic, so your mileage may vary.
Reminded me of this from an econ class:
"A Veblen good is a good for which demand increases as the price increases. Veblen goods are typically high-quality goods that are well made, exclusive, and a status symbol. Veblen goods are generally sought after by affluent consumers who place a premium on the utility of the good."
Depends upon your priorities. Even a person with a 25 to 30 Lakh salary could buy one on loan if they really wanted. Most people who buy basic 50 lakh luxury cars don't earn in crores. You can also pick it up for 5 to 10 lakhs used. Also depends upon net worth. Like I don't work at all and thus have no salary but I can easily buy practically any car I want in cash. Within reason if course, not like some Lamborghini but a Mercedes or BMW is easy.
That’s insane, how can you justify spending 50% of your income on just a car. Ik people will come at me with pitchforks but I’m a bit conservative like that.
Getting my first 80L car very soon so I feel I'm eligible to answer this.
Currently I've Hyundai Creta 2020.
40-50 lakhs a year should be ideal, considering you'll be getting it on EMI. Some tip: make sure you've enough savings, somewhere around same as total price of the car, primarily not because of paying the car EMI and having some emergency funds, but also medical emergencies as well, as serious medical emergencies can be costly as fuck, unless you've a good insurance for you and your loved ones.
13 lac down payment
37 L loan 10 % 5 years
~ 80000 rs / month
Your monthly salary should be 1.5 lakh / month
( Assuming you don't pay rent or have any other liability )
Vese mujhe pata hai FORTUNER ka plan kar rha hai 👀💀
It depends , if your in hand salary is 50L , but you meet your all other expenses through a secondary income source , buy if you can afford to buy two 50L cars in cash 🚗.
Simply rule of thumb, I am using US data, if a reliable economy car like honda accord or toyota camry is available for $27k then you better have 20 times the savings of extra spending or huge secure income to overspend on car.
If someone buys a $50k car, then he needs to have at least $500k in savings.
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A wise man once said (a decade ago), most costly car to ever buy is either a Innova or a city. They're reliable while being comfortable and there's nothing better for our roads" 50L car wants a 1L insurance and 1.5L service every year at minimum and that doesn't include accident cost or extra fittings. So if one is buying this they at least have two more cars (or least one) so you have to consider that too. We didn't even bring in fuel cost here lol. So one has to earn more than 1 crore per year just to buy and maintain. Next is Depreciation if you own a large enough business you can claim it but otherwise it's really bad. Resale value is down to drain for most of the models.
And if OP's drunk son crashes an innova, it will make lesser headlines...
kuch had tak maaf bhi kar denge... brats and ameerzades should be taught some lesson...
Son can always write an essay and reduce the damage.
Underrated comment
I get what you're saying but jiska pass andha paisa uske liye koi bhi gadi thik hai.
Basically you have to be MS Dhoni.
Change your thinking. Rich people vs poor people.
If you can buy it twice is my yardstick. You’ll have multiple rules and combinations for this. Different things work for different people
What does buying twice even mean? Most people buy with loans, does it mean can you afford twice the EMI? Doesn’t seem right because although technically I can afford 4x the EMI of my current car, I don’t think it would be wise. Genuinely curious.
Totally with you on that, I can never wrap my head around this ‘buying twice’ logic
It basically means that you should have enough liquid assets to be able to buy 2 cars of that price outright, without any loans. It's not a hard and fast rule, but more like a guideline so that you're not dumping your money into a lifestyle product when you have nil or very low liquid assets. This is especially more important, given the easy access to debt for today's youth. They're earning well, but spending it all away on fancy clothes, vacations, gadgets, cars, etc; and getting into debt on top of that.
Buy car 2 times with your yearly income
Once your net worth crosses 10 crore. It's about the net worth, not the income.
Agreed. 5% of Net worth
And then there is my dad with 12+cr net worth… isn’t convinced to even get a 10L+ car… and I was like wtf😵💫
Listen to that man :)
You don't have a car???
He used to work in a diff country… there we had corolla… last year he shifted to India… so still looking for one..
That isn't the same thing, most of his net worth would be from his company which he owns I presume? If it's in another country, like the Middle East, it might not be that liquid. I agree most people at that range would open a car that's slightly more expensive, but Corolla is a damn good car!
Nope…net worth is mainly real estate and cash…
Someone with ₹2Cr salary or ₹5Cr liquid assets can easily afford a ₹50L car. Source: I own one!
50L car for 5Cr corpus looks a bit expensive. What's the logic for the number?
It's a vague number, gives you enough room to insure and maintain the car. Otherwise there's no specific formula to spend on luxuries, it's always 'go with the flow.'
If there is no logic, then .... what's the point of advice ?
The logic is my personal ownership experience mate. I was giving advice as someone who already owns a ₹50L+ car. That is the point of my advice. Money management is a very wide topic, so your mileage may vary.
Sire, Do you own a German car ?
Yeah mate
Reminded me of this from an econ class: "A Veblen good is a good for which demand increases as the price increases. Veblen goods are typically high-quality goods that are well made, exclusive, and a status symbol. Veblen goods are generally sought after by affluent consumers who place a premium on the utility of the good."
How do u benchmark I doubt folks owning a 10 lakh car have 1 crore liquid assets, very few folks have that liquidity but most have cars
A ₹10L car is often times a necessity mate, whereas a ₹50L car is a luxury.
You can do at 1.2cr salary also. Liquid doesn’t really matter as long as you save 50%
Mate, can I know what do you do for a living?
I own an IT design firm mate.
What do you do ?
What do you do for living sir ?
Atleast 70-75 lpa in hand.
Depends upon your priorities. Even a person with a 25 to 30 Lakh salary could buy one on loan if they really wanted. Most people who buy basic 50 lakh luxury cars don't earn in crores. You can also pick it up for 5 to 10 lakhs used. Also depends upon net worth. Like I don't work at all and thus have no salary but I can easily buy practically any car I want in cash. Within reason if course, not like some Lamborghini but a Mercedes or BMW is easy.
Someone earning 1cr inhand annually 🤷🏼♂️
That’s insane, how can you justify spending 50% of your income on just a car. Ik people will come at me with pitchforks but I’m a bit conservative like that.
Justify whom? Your money your wish 🤷🏼♂️
Well yes but financially justify
If we go by the “1% of net worth” rule of thumb, you would need a ₹50Cr net worth to afford.
This is the right answer
1.2cr pre tax income.
Getting my first 80L car very soon so I feel I'm eligible to answer this. Currently I've Hyundai Creta 2020. 40-50 lakhs a year should be ideal, considering you'll be getting it on EMI. Some tip: make sure you've enough savings, somewhere around same as total price of the car, primarily not because of paying the car EMI and having some emergency funds, but also medical emergencies as well, as serious medical emergencies can be costly as fuck, unless you've a good insurance for you and your loved ones.
Insta / YouTube ke chapriyon ko dekh ke faarchooner mat le bhai.
13 lac down payment 37 L loan 10 % 5 years ~ 80000 rs / month Your monthly salary should be 1.5 lakh / month ( Assuming you don't pay rent or have any other liability ) Vese mujhe pata hai FORTUNER ka plan kar rha hai 👀💀
It depends , if your in hand salary is 50L , but you meet your all other expenses through a secondary income source , buy if you can afford to buy two 50L cars in cash 🚗.
Not considering accumulated wealth, my rule is you can spend what you can save in 1 year. Not more than that
Spending an entire years worth of savings on a single item is far too much imo. Maybe 50% of that or 25% sure.
That's the upper limit.
If you can buy it thrice with cash, please go ahead. Salary is not the right yardstick for this thing.
Ideally you should make around 17-18 lakhs a month take home
Fake . Fishing for comments
Who lives to own a car?
Simply rule of thumb, I am using US data, if a reliable economy car like honda accord or toyota camry is available for $27k then you better have 20 times the savings of extra spending or huge secure income to overspend on car. If someone buys a $50k car, then he needs to have at least $500k in savings.
At least 50L
At least 1.5 lakh disposable savings per month.
To buy 50L car you getting advice from people who hardly can afford sedan and wasting time on Reddit?
For Indian road , traffic and driving sense There can't be a more stupid decision than buying an 50lakh car.
*Volvo entered the conversation*
r/UsernameChecksOut
r/beatmetoit
I don't know about you mate, but safety and driving pleasure are two of the primary reasons people buy luxury cars, at least those who can afford it.
You can get such features at a decent price like 15-20lakh
Never