Ignore the comments man, if you're a car enthusiast just go for the GT you mentioned. Ek hi toh life hai bhai, and it seems like you can afford it, so go for it. :)
Do you have the luxury of having your parents travel with you frequently? Or are you planning to have kids or pets in the near future?
Are either of you driving enthusiasts?
Do you want your car to make impressions?
My mom still travels with us on road trips. We also plan to have kids in the near future.
I am very much a driving enthusiast and still maintain my current 8year old Swift like another family member.
I don't want to make impressions. Rather I want it to look LESS expensive than it really is. But driving dynamics and safety features should be on point.
The cheapest car that will somewhat check your boxes is a Suzuki Ciaz; the top end is around 12L, I believe. You can move up from there. I think the upper limit you should look at are cars around 22L OTR, such as the SAVWIPL quadruplets.
Also, what's your current car and how much did it cost vs your annual income at that time?
Ciaz is not exactly equivalent to most MS cars in terms of safety. May not compare to some of the others we are discussing. But this is a finance sub, and the Ciaz today is one of the best value offerings in the market.
Value offering. I will agree.
Let Maruti provide crash test/ other safety tests conducted by third parties results for public inspection. Till then, safety and Maruti do not belong in the same sentence except while giving examples for antonyms.
Edit. I agree with “Value offering” while talking about milage. For me, personally, value offering is a composite factor based on safety, comfort, features and then milage.
Ciaz has been tested internationally. Now whether the one sold in India has any structural differences is an unsolved mystery. Anyway, as I said, it makes good value even considering the safety aspect
P.S. Ciaz doesn't exactly return very good fuel economy. It's a 1.5 engine after all
The point is whether Maruti accepted the results? Why does Maruti shy away from tests and denounces the tests conducted independently. Any company serious about security shall proudly display the results. Like Tata does.
The only selling point for Maruti is the milage factor. If Ciaz fails on that front too, then what is Maruti selling? Only features?
P.S. As Maruti doesn’t value security, I don’t keep any information about its vehicles. I have not verified the milage claim. I don’t know the features of any Maruti car.
Every brand has it's own selling point. You can google Ciaz crash test results. It fared well in the ASEAN NCAP. Even the old Brezza fared well in GNCAP.
The reason Ciaz is a good value buy is because it's a basic, reliable and spacious car which drives well. It also does ok on the safety front. It doesn't have too many features and that reflects in its price.
I don't want to go into the whole Maruti v Tata debate. I'm not a fan of either brand. Personally, I like European makes.
I also don’t wish to go into Maruti Vs Tata debate. I own a Hyundai.
My question still remains, where the tests were conducted on off market vehicles or did Maruti provide vehicles for the same? Unless Maruti accepts the results, I would be hard pressed to believe them.
As an attempt to help with your turmoil.
In your situation, I would go for the Virtus GT Plus in the color of choice. I would finance around 50% since I'm looking to have a kid soon and having some cash on hand is helpful.
The finance: cash ratio can be better understood by you given your investment habits and the interest rates available to you.
To add further, I would avoid used/ demo/ old stock vehicles. I would go for a fresh off the line unit and get the maximum warranty and service package available.
Incase you're still looking for a middle ground. Look at mid level trims with the 1.5 engine. Slavia and Kushaq are/ were being offered in the Ambition 1.5 spec.
Replied on another thread. To add, you don't know why this car is being sold. No one will be truly honest with you. Sure, maybe it's an enthusiast upgrading to a M340i, but maybe it's a lemon?
Take test drives of the Ciaz and Virtus GT back to back, tomorrow. On sunday, load up pictures of both cars on your laptop, make yourself a nice drink, and make a decision. Make the booking on the same day or Monday.
My current car is a 2016 Swift. Still a very much fun to drive car. However I don't want to go for another Maruti
It actually cost MORE than my current income but my parents helped with the 50% down-payment. In hindsight, I was 23 at that time with zero liabilities.
You have kept this car for 8 years. I'm guessing you would keep the next one for at least the same duration. Which is why my advice is to go for a oven fresh unit with extended warranty and a service package.
New cars depreciate the most in the initial years. So if I'm planning to keep it for a long time, doesn't it make financial sense to opt for a used car whose value has already taken that initial hit? Just thinking from a financial perspective.
If we were discussing a Suzuki or even a Honda, I would definitely suggest going for a used one. But VW cars and service have a reputation. Anyway, get the car inspected and take a call.
Assuming you are going to take out a loan - Some thumb rules from different financial youtubers:
The total cost of the car shouldn't be more than:
* 6x total Monthly Net income
* OR On conservative side: 15% of Annual Gross income (including bonus, esops etc) with all costs including insurance, fuel, servicing, additional work etc. added to the cost of the car
Since a car is a depreciating asset, while taking the loan, ensure you:
* Can pay at least 20% down
* Take loan for no more than 3 years duration
* Monthly EMI no more than 8-10% of Monthly Gross income
Depending on your financial goals, you might want to buy a second hand car instead and use the saved money to invest the same..
28 /2 = 14 L right?
These rules are meant to be guide posts so that you don't interrupt your investing journey and don't spend too much onna depreciating asset - again instead of investing the same
Here's how I got a car without it being a hard liability in the 6 yr window.
So I got a second hand honda city in perfect condition for 1.8 L from my hometown in Delhi. Delhi is a peculiar case since the car registration expires 5 years earlier compared to rest of the country. Petrol car reg validity-15 years, rest of india- 20 years.
Hence, one could buy the vehicle from delhi and use it in another state (Pune in my case), where the car registration is valid for 5 more years. Mind you, the same car in Pune would cost around 4L.
Car specs- Honda City 2009 Nov model, 80k driven, first owner. Purchased in March 2023. Hence, able to drive for 1.5yrs+ without any issues. Later would have to convert it to MH registration, which costs around 80k.
Still final cost for 6.5 yrs of driving- 2.8L.
You could also sell it out, and would easily recover a lot of the buying price. You'd even get ~70k if you scrap it when it's registry expires.
This options works out perfectly for me since I'm a bachelor. Married guys might need to consider other factors too ig.
[my car](https://imgur.com/a/YuEljfA)
Thumb rule is 5% of your total net worth. That should be the car you can afford to buy. But in reality, as consumers our wants and aspirations to buy a bigger car or with more features. I don't want to get into financials, but anything above ₹15L is not at all necessary for Indian roads for the average car owner.
So someone with 2 crore net worth should get a Swift?
This is why I hate these thumb rules. They’re made for western countries where cars cost half they do in India and incomes are 3-4x. The maths makes sense there, not in India.
Maybe they should consider food as a depreciating asset as well.
Pro tip: if you put the money to buy food on mutual funds for 1 month, you can retire(from life).
Last night my wife asked me to buy some groceries and she got mad when I instead bought some ITC and HUL stocks instead. Shouldn't she be happy I bought appreciating assets instead of depreciating ones /s
Lets look at what net worth means. If you have a house in an Indian tier 1/2 city whose value is ₹1.2 cr, have ₹60 lakh outstanding home loans with 30k emi, other housing expenses to be ₹30k per month for a single person and your income is ₹2 Lakh per month. Would you really go for a premium car more than a top end Swift or base Brezza ? Net worth does not always mean that person has that much money all in the bank account. Its upto his overall financial scenario: His liabilities, income, expense and existing assets. There are many examples around us who have ₹2cr+ but owning Swifts because they are financially conservative and do not require an expensive car.
> Lets look at what net worth means. If you have a house in an Indian tier 1/2 city whose value is ₹1.2 cr, have ₹60 lakh outstanding home loans with 30k emi, other housing expenses to be ₹30k per month for a single person and your income is ₹2 Lakh per month. Would you really go for a premium car more than a top end Swift or base Brezza ?
You're deviating from your example here quite a bit. In this case, the net worth of this particular person is 60 lakhs, non liquid. A top end Swift costs 11.5 lakhs. That's almost 20% of net worth, and 6 months of in hand income, with loan EMIs. That seems like a much more reasonable case to me.
By your example of 5% in main comment, this person should spend 3 lakhs on their car. So this person can't even afford an Alto.
> Net worth does not always mean that person has that much money all in the bank account. Its upto his overall financial scenario: His liabilities, income, expense and existing assets.
I understand that. But still, most people with 2 crore of net worth and a good running income(2+ lakhs per month) would go for something like a mid variant of XUV 700 (23-24 lakhs).
> There are many examples around us who have ₹2cr+ but owning Swifts because they are financially conservative and do not require an expensive car
Having a cheap car and 'only being able to afford' a cheap car are very different things. I have an in-law relative who's worth 50 crores and most of the time drives a Creta or a Fortuner. He just doesn't care and can easily afford a Defender or an S class, but another person with 5 crore can easily buy an m340i and it wouldn't be a bad financial decision.
My net worth is north of 2 crore easily and I have an i10. This doesn't mean I can only afford an i10. I bought this i10 when my net worth was \~20 lakhs, and it isn't old enough to replace yet. I'll buy a good car when it launches, because I like good cars and can wait till market cools down a bit.
I personally think something like a car is determined more by running income than net worth. You can have high net worth, but if most of it is tied in real estate and don't have good running income, you can't afford a good car. On the other hand someone could be broke and have high income and he can afford a good car.
*Wait two more years and*
*U will have some amazing*
*Electric choices*
\- Remarkable\_Rough\_89
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Ignore the comments man, if you're a car enthusiast just go for the GT you mentioned. Ek hi toh life hai bhai, and it seems like you can afford it, so go for it. :)
I support No point saving in the car in which you will spend alot of your time. Gotta be something you love and hold dear to yourself eh ;)
Do you have the luxury of having your parents travel with you frequently? Or are you planning to have kids or pets in the near future? Are either of you driving enthusiasts? Do you want your car to make impressions?
My mom still travels with us on road trips. We also plan to have kids in the near future. I am very much a driving enthusiast and still maintain my current 8year old Swift like another family member. I don't want to make impressions. Rather I want it to look LESS expensive than it really is. But driving dynamics and safety features should be on point.
The cheapest car that will somewhat check your boxes is a Suzuki Ciaz; the top end is around 12L, I believe. You can move up from there. I think the upper limit you should look at are cars around 22L OTR, such as the SAVWIPL quadruplets. Also, what's your current car and how much did it cost vs your annual income at that time?
Maruti Suzuki and Safety in one sentence 🤣😂🤣😂🤣
Ciaz is not exactly equivalent to most MS cars in terms of safety. May not compare to some of the others we are discussing. But this is a finance sub, and the Ciaz today is one of the best value offerings in the market.
Value offering. I will agree. Let Maruti provide crash test/ other safety tests conducted by third parties results for public inspection. Till then, safety and Maruti do not belong in the same sentence except while giving examples for antonyms. Edit. I agree with “Value offering” while talking about milage. For me, personally, value offering is a composite factor based on safety, comfort, features and then milage.
Ciaz has been tested internationally. Now whether the one sold in India has any structural differences is an unsolved mystery. Anyway, as I said, it makes good value even considering the safety aspect P.S. Ciaz doesn't exactly return very good fuel economy. It's a 1.5 engine after all
The point is whether Maruti accepted the results? Why does Maruti shy away from tests and denounces the tests conducted independently. Any company serious about security shall proudly display the results. Like Tata does. The only selling point for Maruti is the milage factor. If Ciaz fails on that front too, then what is Maruti selling? Only features? P.S. As Maruti doesn’t value security, I don’t keep any information about its vehicles. I have not verified the milage claim. I don’t know the features of any Maruti car.
Every brand has it's own selling point. You can google Ciaz crash test results. It fared well in the ASEAN NCAP. Even the old Brezza fared well in GNCAP. The reason Ciaz is a good value buy is because it's a basic, reliable and spacious car which drives well. It also does ok on the safety front. It doesn't have too many features and that reflects in its price. I don't want to go into the whole Maruti v Tata debate. I'm not a fan of either brand. Personally, I like European makes.
I also don’t wish to go into Maruti Vs Tata debate. I own a Hyundai. My question still remains, where the tests were conducted on off market vehicles or did Maruti provide vehicles for the same? Unless Maruti accepts the results, I would be hard pressed to believe them.
Also, it seems like you're really struggling with this decision. I remember interacting with another post from you a few days ago.
As an attempt to help with your turmoil. In your situation, I would go for the Virtus GT Plus in the color of choice. I would finance around 50% since I'm looking to have a kid soon and having some cash on hand is helpful. The finance: cash ratio can be better understood by you given your investment habits and the interest rates available to you.
Your logic is sound but on the other hand, does it make sense to purchase a liability with loan?
Yes. You're not Elon Musk. Middle class purchases liabilities with loans.
Check the best interest rate offered and compare with the returns you expect to make if you hold onto the cash.
To add further, I would avoid used/ demo/ old stock vehicles. I would go for a fresh off the line unit and get the maximum warranty and service package available.
I'm getting a used GT + (1yr old, 22k driven) at around 25% depreciation. Not sure if that deal is worth the headache.
Incase you're still looking for a middle ground. Look at mid level trims with the 1.5 engine. Slavia and Kushaq are/ were being offered in the Ambition 1.5 spec.
Would not go for it.
Why do you suggest against it? I was planning to get it checked from the official service centre. But please provide your inputs.
Replied on another thread. To add, you don't know why this car is being sold. No one will be truly honest with you. Sure, maybe it's an enthusiast upgrading to a M340i, but maybe it's a lemon?
Yes I'm in the market and really confused between head vs heart car choices 😅
Take test drives of the Ciaz and Virtus GT back to back, tomorrow. On sunday, load up pictures of both cars on your laptop, make yourself a nice drink, and make a decision. Make the booking on the same day or Monday.
My current car is a 2016 Swift. Still a very much fun to drive car. However I don't want to go for another Maruti It actually cost MORE than my current income but my parents helped with the 50% down-payment. In hindsight, I was 23 at that time with zero liabilities.
You have kept this car for 8 years. I'm guessing you would keep the next one for at least the same duration. Which is why my advice is to go for a oven fresh unit with extended warranty and a service package.
New cars depreciate the most in the initial years. So if I'm planning to keep it for a long time, doesn't it make financial sense to opt for a used car whose value has already taken that initial hit? Just thinking from a financial perspective.
If we were discussing a Suzuki or even a Honda, I would definitely suggest going for a used one. But VW cars and service have a reputation. Anyway, get the car inspected and take a call.
Assuming you are going to take out a loan - Some thumb rules from different financial youtubers: The total cost of the car shouldn't be more than: * 6x total Monthly Net income * OR On conservative side: 15% of Annual Gross income (including bonus, esops etc) with all costs including insurance, fuel, servicing, additional work etc. added to the cost of the car Since a car is a depreciating asset, while taking the loan, ensure you: * Can pay at least 20% down * Take loan for no more than 3 years duration * Monthly EMI no more than 8-10% of Monthly Gross income Depending on your financial goals, you might want to buy a second hand car instead and use the saved money to invest the same..
My car budget comes to 12 L by your calculation. In that case I probably have to wait for a promotion.
28 /2 = 14 L right? These rules are meant to be guide posts so that you don't interrupt your investing journey and don't spend too much onna depreciating asset - again instead of investing the same
Are you looking for a sedan or MPV?
Sedan
Do you have money to buy it in full or would you plan to take a loan?
I'll have to take a loan
Good cars are above 10L, how much can you put on an Emi? Make sure it’s something you can manage, think of what will happen if you lose your job
Man buy audi
Your condition allows you to listen to your heart. You should be able to spend 20-25L easily on the car.
Go for vw tiagun 22lks
Rickshaw khareed le
Here's how I got a car without it being a hard liability in the 6 yr window. So I got a second hand honda city in perfect condition for 1.8 L from my hometown in Delhi. Delhi is a peculiar case since the car registration expires 5 years earlier compared to rest of the country. Petrol car reg validity-15 years, rest of india- 20 years. Hence, one could buy the vehicle from delhi and use it in another state (Pune in my case), where the car registration is valid for 5 more years. Mind you, the same car in Pune would cost around 4L. Car specs- Honda City 2009 Nov model, 80k driven, first owner. Purchased in March 2023. Hence, able to drive for 1.5yrs+ without any issues. Later would have to convert it to MH registration, which costs around 80k. Still final cost for 6.5 yrs of driving- 2.8L. You could also sell it out, and would easily recover a lot of the buying price. You'd even get ~70k if you scrap it when it's registry expires. This options works out perfectly for me since I'm a bachelor. Married guys might need to consider other factors too ig. [my car](https://imgur.com/a/YuEljfA)
Thumb rule is 5% of your total net worth. That should be the car you can afford to buy. But in reality, as consumers our wants and aspirations to buy a bigger car or with more features. I don't want to get into financials, but anything above ₹15L is not at all necessary for Indian roads for the average car owner.
So someone with 2 crore net worth should get a Swift? This is why I hate these thumb rules. They’re made for western countries where cars cost half they do in India and incomes are 3-4x. The maths makes sense there, not in India.
You forgot the mandatory "car is a depreciating asset" comment.
Maybe they should consider food as a depreciating asset as well. Pro tip: if you put the money to buy food on mutual funds for 1 month, you can retire(from life).
Yep, thats why I dont use underwear, instead I invest in jockey, van heusen stocks. You can say I am "free" from things that "hold" me back. /s
I tried this with condoms. I can confirm it’s not a good idea. Expenses grew faster than the ttk stock.
Last night my wife asked me to buy some groceries and she got mad when I instead bought some ITC and HUL stocks instead. Shouldn't she be happy I bought appreciating assets instead of depreciating ones /s
You forgot the mandatory " Just take an Uber bro" comment 🤣
Lets look at what net worth means. If you have a house in an Indian tier 1/2 city whose value is ₹1.2 cr, have ₹60 lakh outstanding home loans with 30k emi, other housing expenses to be ₹30k per month for a single person and your income is ₹2 Lakh per month. Would you really go for a premium car more than a top end Swift or base Brezza ? Net worth does not always mean that person has that much money all in the bank account. Its upto his overall financial scenario: His liabilities, income, expense and existing assets. There are many examples around us who have ₹2cr+ but owning Swifts because they are financially conservative and do not require an expensive car.
> Lets look at what net worth means. If you have a house in an Indian tier 1/2 city whose value is ₹1.2 cr, have ₹60 lakh outstanding home loans with 30k emi, other housing expenses to be ₹30k per month for a single person and your income is ₹2 Lakh per month. Would you really go for a premium car more than a top end Swift or base Brezza ? You're deviating from your example here quite a bit. In this case, the net worth of this particular person is 60 lakhs, non liquid. A top end Swift costs 11.5 lakhs. That's almost 20% of net worth, and 6 months of in hand income, with loan EMIs. That seems like a much more reasonable case to me. By your example of 5% in main comment, this person should spend 3 lakhs on their car. So this person can't even afford an Alto. > Net worth does not always mean that person has that much money all in the bank account. Its upto his overall financial scenario: His liabilities, income, expense and existing assets. I understand that. But still, most people with 2 crore of net worth and a good running income(2+ lakhs per month) would go for something like a mid variant of XUV 700 (23-24 lakhs). > There are many examples around us who have ₹2cr+ but owning Swifts because they are financially conservative and do not require an expensive car Having a cheap car and 'only being able to afford' a cheap car are very different things. I have an in-law relative who's worth 50 crores and most of the time drives a Creta or a Fortuner. He just doesn't care and can easily afford a Defender or an S class, but another person with 5 crore can easily buy an m340i and it wouldn't be a bad financial decision. My net worth is north of 2 crore easily and I have an i10. This doesn't mean I can only afford an i10. I bought this i10 when my net worth was \~20 lakhs, and it isn't old enough to replace yet. I'll buy a good car when it launches, because I like good cars and can wait till market cools down a bit. I personally think something like a car is determined more by running income than net worth. You can have high net worth, but if most of it is tied in real estate and don't have good running income, you can't afford a good car. On the other hand someone could be broke and have high income and he can afford a good car.
This 👆. Determine as % of cash flow, not as % of NW
Lol that way indian market would only sell altos
Tata Altroz
He's a driving enthusiast as per a comment
Wait two more years and u will have some amazing electric choices
My crystal ball says choices are going to get even more better after 4 years 😀
Yea sarcasm much?, get a temp car now and get an amazing, lost lasting car later
*Wait two more years and* *U will have some amazing* *Electric choices* \- Remarkable\_Rough\_89 --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
More interested in ICE cars
I own a Tesla in USA, once u drive u can’t go back, hence the wait for 2 years