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Old 27th March 2013, 09:37   #196
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Default Re: What Car @ What Salary ?

Weird thread!

My EMI comes to almost 33% of my salary. My EMI + fuel expense comes to almost 50% of my salary.

Do i repent? No way - Everyday after parking the car - i stand and admire her beauty, everytime i drive it - i realize I'm alive and young! I know i wont be able to save anything till the loan repayment is completed - but then - there is more to life than just sitting in front of a computer and working 10- 12 hours just to make money!
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Old 27th March 2013, 09:58   #197
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Default Re: What Car @ What Salary ?

Quote:
Originally Posted by CrAzY dRiVeR View Post
Weird thread!

My EMI comes to almost 33% of my salary. My EMI + fuel expense comes to almost 50% of my salary.

Do i repent? No way - Everyday after parking the car - i stand and admire her beauty, everytime i drive it - i realize I'm alive and young! I know i wont be able to save anything till the loan repayment is completed - but then - there is more to life than just sitting in front of a computer and working 10- 12 hours just to make money!
Good for you if you feel this way. I hope you dont see a real recession and job loss ever. However in the eventuality of a job loss do you have enough savings to continue your lifestyle for the next 6-12 months at least until you get a new job?
If your answer is yes, congrats you have nothing to work about
if no, its time to introspect and see how can you manage that kind of savings.
PS: Its the young and the inexperienced/unmarried who are the first to go when jobs are cut. Sorry but all industries operate like that.
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Old 27th March 2013, 09:59   #198
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Default Re: What Car @ What Salary ?

Quote:
Originally Posted by CrAzY dRiVeR View Post
Do i repent? No way - Everyday after parking the car - i stand and admire her beauty, everytime i drive it - i realize I'm alive and young! I know i wont be able to save anything till the loan repayment is completed - but then - there is more to life than just sitting in front of a computer and working 10- 12 hours just to make money!

I think in the initial years of our careers it does make sense as you put it.
But as one starts climbing the social order of marriage, kids, education, long term savings, other investments etc the equations would come to play.

And off course it also is a delicate balance of what we desire and we can afford.
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Old 27th March 2013, 10:10   #199
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Default Re: What Car @ What Salary ?

Quote:
Originally Posted by CrAzY dRiVeR View Post
Weird thread!

My EMI comes to almost 33% of my salary. My EMI + fuel expense comes to almost 50% of my salary.

Do i repent? No way - Everyday after parking the car - i stand and admire her beauty, everytime i drive it - i realize I'm alive and young! I know i wont be able to save anything till the loan repayment is completed - but then - there is more to life than just sitting in front of a computer and working 10- 12 hours just to make money!
The way you put it, I would agree with you - provided you are young and have no commitments (this includes no dependent aged parents). I can see your joie de vivre - the spirit of life in your passion.

Long time ago I have seen a younger colleague who splurged on Merc M class while I was still struggling with an Amby. The only difference was he was in Cyprus and he had no permanent girlfriend while I had a family and I was in India. We both worked the same 14 hours a day drill and drew similar salaries in respective currencies.

When you are in certain age group, you can take calculated risk.
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Old 27th March 2013, 11:51   #200
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Originally Posted by CrAzY dRiVeR View Post
Weird thread!

Everyday after parking the car - i stand and admire her beauty, everytime i drive it - i realize I'm alive and young!
Even without looking at your signature, that description - it has to be a Fiat!
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Old 27th March 2013, 12:18   #201
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A more general rule, value of car 3X your (meaning you + wifey, if earning) monthly gross you will not even feel the ownership, 5X - 6X you safe bet, 7 - Annual gross, you will need to have your financials sorted out and planned. >Annual gross, you need a really strong reason to own that car. This also holds true not for one car but multiple cars owned by you and your better half (like you drive a Vento/City/Verna and wifey prefers a smaller easier i10 etc). Now again, this depends on how the car is owned. If its a all cash buy, then you need not even bother, as you anyway have disposable money. This applies to EMIs. Again, if the EMIs are pre-tax, like your business is buying you or its a employer lease then this holds good. If its post tax EMI then reduce 1 month from the above calc.

A car gives a different (safe, easier) lifestyle, but what car is matter of various other factors in which money goes out.
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Old 27th March 2013, 12:26   #202
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Interesting thread, though old. I think the thumbrule mentioned earlier is the best, you should not go for a car which costs more than your total annual net income (post-tax and preferably, post investments for retirement). If you're DINK, and you both share a car, add in your wife's net income as well to the equation
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Old 27th March 2013, 13:45   #203
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I am one who took the plunge just 4 years into my job and never calculated anything like shared here! But luckily, things have been fine (had good savings in those 4 years) and my EMI will be closing in 6 months. And I have enough back up to cover it even if I am not having a job.

But now looking at this thread, I realize more calculations & preparations should have gone into it. The way I took a plunge was based on the environment I lived in and not considering anything that may arise in future.

At times, I do feel the pinch, but when I look back, I feel so happy. Have made a lot of trips, a lot of happy moments which otherwise would have NEVER happened. All these 50+ months of ownership also taught me what NOT to do in future, with respect to a car ownership. Expensive learning, still!

Last edited by swiftnfurious : 27th March 2013 at 13:47.
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Old 27th March 2013, 14:00   #204
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Using the formula given on this thread, i should be driving a BMW Audi or better.

And here I am owning a nine year old santro, and going to office everyday in bmtc bus.
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Old 27th March 2013, 14:16   #205
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Quote:
Originally Posted by CrAzY dRiVeR View Post
Weird thread!

My EMI comes to almost 33% of my salary. My EMI + fuel expense comes to almost 50% of my salary.
I am pretty much in the same boat. My figures are slightly better at 29 % Fuel cost, I have not calculated, being a new owner. But, I went for it (being positive and hoping for the best in future !), as this was the third best thing of my life and wanted it to be on par (first and second being wifey and job ).
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Old 27th March 2013, 14:26   #206
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I quickly read some interesting posts and felt like quoting this (attributed to Benjamin Graham) - http://en.wikipedia.org/wiki/Benjamin_Graham

"Several decades were to pass, and many vicissitudes to be undergone, before I could master the simplest and most important of all the rules of material welfare: The most brilliant financial strategy consists of living well within one’s means."

Of the 4 cars I bought only one was under EMI and that too because rates were ridiculously low. But who knows how the future will be.

Cheers,

Last edited by diffsoft : 27th March 2013 at 14:28.
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Old 27th March 2013, 15:18   #207
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Originally Posted by prince_pervez View Post
If people decide cars from salary slabs they earn then pretty much everyone will be able to make out what one earns by his car. Just kidding. I own a Lancer and a Zen. But both my Salary does not fall in the 15-20 L bracket.
You hit the nail on the head my friend.the main reason this thread exists is because a car helps project an 'image' to society. Buying a machine for A to B transportation is just one small factor .

Even though the comment is old ,it deserves a bump
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Old 27th March 2013, 15:20   #208
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..ownership also taught me what NOT to do in future, with respect to a car ownership. Expensive learning, still!
Please share these learnings, that what this forum is all about.
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Old 27th March 2013, 15:29   #209
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Please share these learnings, that what this forum is all about.
Most of these are on the thread itself, like when should you buy a car and how much % of your salary should be allocated and how much should you keep aside for unforeseen situations and the likes.

The tight budget also taught me to be a sedate & safer diver, driving smoother for FE etc! And also do research on the parts & costs and NOT to be taken for a ride by the A$$!

Last edited by swiftnfurious : 27th March 2013 at 15:30.
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Old 27th March 2013, 16:24   #210
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Default Re: What Car @ What Salary ?

Well for starters the title will be like what salary @what car.
The salaried class in particular are more oriented towards what is the remnant after all the necessary expenses that allow for desirable expenses. A car in today's world does not reflect a symbol of comfort but more of a living requirement. May be upto a sedan the salary part (rather income aspect) does not kick in but it definitely rules the decision for high end like an Audi/ BMW/etc.
We should look at thumb rule that all the expenses for EMI/Loan should not exceed at more than 40% of the net available income for a comfortable ownership and meet with the needs as and when they arise.

Cheers
Prasad
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