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Old 29th April 2010, 07:29   #136
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All you guys talking about smell of new cars and pride of a new car owner please do read "Lateral upgrading - GTO". Buying a 2nd hand car is not a bad idea if you have the patience to wait and the temperament to negotiate. Some of the deals GTO has reported is absolutely fantastic. Plus buying a 2nd hand car protects you from initial depreciation.
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Old 29th April 2010, 07:41   #137
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if you have the patience to wait and the temperament to negotiate
This is the point through which the bankers survive; one of the popular bank advertises - "Get what you want right now" & that was sounding to me like

Well, that's something on OT; but to answer what car at what salary, I would say a big NO to loan, anyday a rupee saved is rupee gained. IMO, start saving money & assume that is EMI & then buy the car later instead of buying the car now & paying the EMI later. In a way it helps because, once someone starts putting money aside, only then, they'll start realizing how much shortage do they fall by; buying a used or new car is left to one's discreetion. But like you said, patience & temperament to negotiate will always gives the best choice.

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Old 29th April 2010, 07:50   #138
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but to answer what car at what salary, I would say a big NO to loan
Absolutely!
It doesn't make good economical sense to buy a depreciable
asset entirely on loan. But, i differs from person to person.
Save some amount and borrow the rest.
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Old 29th April 2010, 07:53   #139
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Prince, can I put this way?
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It doesn't make good economical sense to buy a depreciable asset entirely on loan.
Yes, try to remain patiently

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Save some amount and borrow the rest.
^^^for the impatient folks; again, before borrowing, it should never, never hurt the regular life style keeping in mind about EMI+fuel+operational expense+bank balance going down

OT - So when're you leaving to OH?

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Old 29th April 2010, 08:12   #140
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Prince, can I put this way?

Yes, try to remain patiently
In some cases and with second hand heart throbes,
one too much patience makes another man's car.
So it a skill of balance.

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OT - So when're you leaving to OH?
Next month, InshaAllah!
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Old 29th April 2010, 09:01   #141
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Look at it this way, you are buying an asset which starts loosing its value from day one. plus you wiped out your savings to buy this asset.

Rather than buying a car with your cash reserves, why not buy it at 9-10% interest and invest the money you have. If you are good at it, your investment will not only take care of the interest you are paying but will also take care of the depreciation.

But then its easier said than done and its not for everyone. Take a look at your investment portfolio, if you are below 40 years and more than 50% of your investments is in Bank FD, PPF, PF, Endowment Policies, Govt Bonds, Where the primary objective of the investor is security of the principal amount rather than returns try to keep your loan amount to a minimum.

As for people who belong to the second category, you don't need anybody' advice.
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Old 29th April 2010, 09:20   #142
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Assume someone has a need for transport. Dropping kids at school, then spouse at office and finally getting to his/her own office.
Then in the evening having to pick up spouse and get home.

Meanwhile at home there is a parent needing medical checkups.
So much so that the options are:
Load entire family into a motorcycle.
Or use autorickshaws/ cabs.

If the person is worried about safety then there is no option of using a motorcycle. And this would be the correct approach.

Such a person will have no choice but to buy a car on loan.
So much money is going into cabs that it might as well go into owning a car.


This is just one scenario where buying a car on loan is not just justified but leaves a person with no choice.
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Old 29th April 2010, 10:08   #143
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Such a person will have no choice but to buy a car on loan.
Right, he has to take a loan, but the question remains as which car? Is it Nano? WagonR? Versa? Verna? or Innova? And most importantly new or old? Each has got its own pros & cons & depending on the downpayment the loan should be worked out. If one remains patience, atleast to think deep on pros & cons or consult with friends, he/she can prepare mentally for what're the pros & cons that are about to come up along with the car rather than jumping on to the car & regretting it later. This is another form of patience.
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Old 29th April 2010, 12:19   #144
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Originally Posted by drrajasaravanan View Post
Hi
All you guys talking about smell of new cars and pride of a new car owner please do read "Lateral upgrading - GTO". Buying a 2nd hand car is not a bad idea if you have the patience to wait and the temperament to negotiate. Some of the deals GTO has reported is absolutely fantastic. Plus buying a 2nd hand car protects you from initial depreciation.
Cheers
GTO was one of the lucky ones he got a good car. There are folks on TBhp who have bought used Balenos, VRs etc who tell a different story. When buying second hand, manfacturer warranty, etc goes out of the window and there is a probability of spending $$$ and getting a lemon.

P.S. I am not against used cars, but folks here are making it sound like second hand car is the wiser option, which I dont neccesarily agree with. Second hand becomes a good option when your DEZIRE exceeds your pocket and you want to own a good higher segment car at a lower price.
To give you an example, I would never consider buying a second hand Santro etc. As I can easily afford a new one. But if I am stretching my budget to buy a Civic, I might be tempted to look at the pre-owned car segment to try and "fit" it in my budget.

Last edited by aseem : 29th April 2010 at 12:21.
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Old 29th April 2010, 12:27   #145
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Originally Posted by bblost View Post
Such a person will have no choice but to buy a car on loan.
So much money is going into cabs that it might as well go into owning a car.


This is just one scenario where buying a car on loan is not just justified but leaves a person with no choice.
Correct, but like @aargee said, how heavy a loan ?
Brand new sedan class or a second hand hatch class ?
The latter seems more economical and feasible.

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Old 29th April 2010, 12:33   #146
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Quote:
Originally Posted by aseem View Post
Second hand becomes a good option when your DEZIRE exceeds your pocket and you want to own a good higher segment car at a lower price.
To give you an example, I would never consider buying a second hand Santro etc. As I can easily afford a new one. But if I am stretching my budget to buy a Civic, I might be tempted to look at the pre-owned car segment to try and "fit" it in my budget.
True aseem. A used Santro or Alto sells at a cost very near to a brand new one and not worth the risk taken in most cases. But when it comes to the higher segments like Ford or Skodas or Mitsubushis or other firangis, it makes sense to consider a pre owned since an year usage would help you save atleast 30% of the hard earned money at the same time satisfying your desire which is worth the buy.

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Old 29th April 2010, 12:36   #147
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To give you an example, I would never consider buying a second hand Santro etc. As I can easily afford a new one.
Well I did.
I bought myself a second hand Wagon R although I could easily afford a new one.
Save myself a lakh rupees and 4 years later absolutely no regrets.

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Originally Posted by prince_pervez View Post
Correct, but like @aagree said, how heavy a loan ?
Brand new sedan class or a second hand hatch class ?
The latter seems more economical and feasible.
That is where common sense needs to be applied.
A relative of mine decided to buy a Ford Escort. Plan stupid idea as the car was bad, they paid a lot more than it was worth and finally sold it at considerable loss.

Some people forget the actual requirement and instead go with perceptions. They want to show the world, I have so much money and hence will refuse to even consider a lower segment. I am not talking about them.

I am talking about folks who have a genuine need and a fair understanding of what they really need.

“Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like.” --Will Smith
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Old 29th April 2010, 12:36   #148
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The maximum you should ever spend on a new car is 33% of your salary. That is the norm most banks abroad apply in lending for car loans
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Old 29th April 2010, 12:57   #149
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GTO was one of the lucky ones he got a good car.
As they say, luck favours those who work the hardest . I've bought 3 used cars and have had ZERO troubles with any of them, nor have I once regretted my purchase decision. If you include my family & friends, I've probably helped about 30 people buy used cars in the last 5 - 7 years. No complaints there either!

As long as you take the necessary precautions, verifications & inspections (all noted in our Advice articles), you will end up with a good deal. Lots of footwork & effort though. Admittedly, used cars have some element of risk...else everyone and their dogs would only buy used. But the gains far outweigh the risk.
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Old 29th April 2010, 13:22   #150
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Well I did.
I bought myself a second hand Wagon R although I could easily afford a new one.
Save myself a lakh rupees and 4 years later absolutely no regrets.
@Aseem - ditto here, saved a lakh, 16K on ODO for a 2.5 yrs old WagonR & till date no regrets.

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That is where common sense needs to be applied.
Exactly

Quote:
Originally Posted by bblost View Post
Some people forget the actual requirement and instead go with perceptions.
Very very true; if the requirements are laid down correctly, you may probably land up buying nothing (for high expectation) but then you cannot go wrong in your selection.

Quote:
Originally Posted by bblost View Post
“Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like.”
Very great words of inspiring words from Will Smith; actually made me live more humble.

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Originally Posted by DKG View Post
The maximum you should ever spend on a new car is 33% of your salary. That is the norm most banks abroad apply in lending for car loans
Sir, could you throw some light on why 33% pls? I would like to understand this point. Tks.
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