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Old 13th September 2008, 18:44   #151
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Plain simple economics can sure be interesting.
For one, It does make sense to continue with your old car, if it is not too much of a hassle and your needs are quite the same.

But, as some people rightly said, though economics do make sense, in some areas its the heart that rules.
If, for example, you have always dreamt about a particular car and when you finally feel that you can afford it, would you not grab hold of it, setting the eco fundas aside?
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Old 13th September 2008, 20:08   #152
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Originally Posted by Hackett View Post
if Rs 13/- is cost of per km travel of an a/c cab , the cost of ownership becomes more interesting.
I don't think it would make sense to compare taxis to own cars. Cars are things close to your heart. Car is at your disposal. Of course, if you would like to be driven, hiring a driver would be a good decision.
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Old 13th September 2008, 22:26   #153
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Originally Posted by theEnd View Post
(not directed towards anyone in particular)

Suppose you're 40 years old, and you put off buying your new car for a few years, save 22L. Then, when you're 50, you do the same and save 33L. At age 60 you save 44L by delaying another car purchase. At age 70 (alas), you have a heart attack and die.

Furthermore, if you drive an average of 10,000 kilometers a year, from age 20 to age 70, you've driven 500,000 kilometers. Assuming an average speed (for a mix of city and highway driving) of 50 km/h (optimistic), you've spent 10,000 hours of your life driving your cars. Thats a year and two months (417 days) behind the wheel of your car. For many of us, that number will be much higher.

You lived your life always wondering what it would be like to drive that newer, faster, better car. And you always knew which were the newer, faster, better cars because you would read endlessly about them (magazines, websites) or talk about them with your friends. What you drove really mattered to you.

You're saved 99L in your bank account, plus accumulated interest. You're a rich man when you die. I hope you've figured out some way of transferring your hard earned gains to your new bank account in the afterlife!
I really like the train of your thoughts and argument. Yep. Saving Money for the heck of it.. is .. FOOLISH. If you have it .. do put it to a Good Use. And At Times... One must give in to Temptations.

Cheers !!
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Old 13th September 2008, 22:52   #154
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Part of the value this thread has had for me, is to make me realise how much of my desire is actually fuelled by the advertising and lifestyle imagery evoked by these products - cars, mobile phones, and other things that are changed based on pure desire and "keeping-up-with-the-Khannas" feeling.
Apart from retaining the baleno, I have also decided my trusty old Motorola L7 will serve me well for quite some more time - don't really need that I-Phone and tie another millstone to my neck.
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Old 15th September 2008, 16:47   #155
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great discussion regarding economics for change, but then this can also be implied to guys who are going for a new car. Try to go for a gem in used car. One might not even require to take loan? Ne thoughts on the same
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Old 24th September 2008, 13:32   #156
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Originally Posted by tez View Post
great discussion regarding economics for change, but then this can also be implied to guys who are going for a new car. Try to go for a gem in used car. One might not even require to take loan? Ne thoughts on the same

Great thinking and you guys have put private Bankers like us also to think and do the home work before zeroing in on to a new car, mobile, laptop and the never ending list.
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Old 29th September 2008, 13:48   #157
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Originally Posted by shankar.balan View Post
This is interesting, since I experienced this dilemma 5 months ago. I was advised as follows by my CFO when I asked him about this, seeking his help as a Finance Professional:

1.Typically people/ companies take 5 year loans to buy brand new cars.
2.On a 5 year loan, the break-even point comes at about 3 years into the loan.
.....

9.The flip-side of all this consumption-led behaviour is that as long as one is working and earning, one will be constantly consuming and thus, will be servicing some kind of EMI or other - on the "never-never" or the "play-now-pay-later-plan" to use a couple of euphemisms!!
What you typically synopsis concludes that on this model, we moving towards the American culture :-)
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Old 29th September 2008, 14:05   #158
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This is an interesting thread. I dont think there is a definite answer to this question. However a fitting answer in my opinion would be between who you are, what you do and what you believe.

Who you are.
so if you are a salaried person which i think is the biggest curse due to Indian taxation which discriminate the salary classes, its difficult. However if you are an entrepreneur then its easy to claim depreciation benefits to nullify your taxes. So in the former scenario, its a loss whereas the latter its a profit (in a way)

What you do.
So if you are an outgoing personality or in a high profile role, you would need to maintain status quo. You dont want to drive an alto when your subordinate could drive a honda city :-) This is irrespective of numbers. Its the human mentality

What you believe.
Belief is everything. It makes or breaks you. I personally know a friend who lives in the same bldg whos in a VP role with a large MNC who still drives a Logan (very recently upgraded from an indica).

If you believe you gonna make it big in 3 or 5 years, go ahead and make your dream purchase. if you think a car can seriously improve that status quo of yours and make a differennce in non-material gains, monetarily then do the same.

In the end, i would like to quote something from buddha.

Believe nothing just because a so-called wise person said it. Believe nothing just because a belief is generally held. Believe nothing just because it is said in ancient books. Believe nothing just because it is said to be of divine origin. Believe nothing just because someone else believes it. Believe only what you yourself test and judge to be true.Buddha
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Old 3rd October 2008, 11:01   #159
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Brilliant article. This is true especially when one is upgrading from a C segment car to a D segment car, after a pay raise or just because he can.
My brother in law used to drive an Icon and sold it off before he went to Europe on a long assignment which was then cut short :P by his company and found him self in the city with no transportation. He now wants to upgrade to a D segment, but the high price tags and interest rates are keeping him off and he borrows my car whenever he feels like driving. Kind of a delimma isint it, should he go in for a Sedan or just buy a good hatch (I dig the i10) and hold his plans till the market settles down.
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Old 3rd October 2008, 11:31   #160
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Quote:
Originally Posted by personified View Post
What you do.
So if you are an outgoing personality or in a high profile role, you would need to maintain status quo. You dont want to drive an alto when your subordinate could drive a honda city :-) This is irrespective of numbers. Its the human mentality
[ I think you meant status, not status quo, which might have a very different impact on the outcome ]

Why so ? If X is not too keen about cars except as a mode of local family transportation, a basic set of wheels might suffice. A subordinate, Y, might love to drive, highways and all, and spend on cars big time. X might, otoh, own a fancy villa that can accommodate the extended family for get-togethers etc. Or splurge on a huge holiday if he/she is a travel-freak. Or on books, or cameras, or whatever they're into.

* Don't buy stuff to ensure "yours-is-bigger/better-than-your-neighbours/subordinates" - thats a path thats going nowhere
* You can be "passionate" about a couple of things, not photography AND travel AND driving AND houses AND gadgets AND....you get the drift. If this is the case, there's a need to learn how to absorb marketing messages less impactfully, cause, again, this is a path leading nowhere good.

After years of driving the OHC, I was contemplating a change last year and for a while considering the practicality that the Marina offered, at a decent upfront and running cost. A neighbour was surprised I was "considering a downgrade". I was amused, and explained that its merely a tool to fit my current needs - and 7 years ago, I could afford to fall in love with the sweet sound of the City at 6k revs, but now space, and frugality, and the flexibility the car offered with kids, and visitors (railway station/airport pickups) was the key.

Last edited by zenx : 3rd October 2008 at 11:35.
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Old 6th October 2008, 18:25   #161
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I too had prepared a similar excel sheet about 2 years before and thatz y I still have my 99' model Fiat UNO diesel with me.
It has done 1,30,000 and still going strong
I am happy that I made that decision
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Old 6th October 2008, 20:54   #162
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The flow chart makes sense, but after 4-5 years the desire to get behind a better and different set of wheels is too much. Simply putting it, you get bored driving the same car for so long, upgrading is more a social pressure for most.

But we auto freaks should follow our hearts rather than our minds, provided finances allow.


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Old 7th October 2008, 10:23   #163
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I would agree..
if finances allow and if the new models in offer appeal us so much to make us want them.
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Old 7th October 2008, 12:04   #164
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Originally Posted by Abhiraj View Post
I too had prepared a similar excel sheet about 2 years before and thatz y I still have my 99' model Fiat UNO diesel with me.
It has done 1,30,000 and still going strong
I am happy that I made that decision
Abhi,

This is very encouraging for FIAT fans. You should write a long term ownership report. Please include the servicing done and the parts replaced and pros and cons of the FiatASS in the same.
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Old 7th October 2008, 18:41   #165
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nice thoughts, but it will not stop people from buying new cars
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