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View Poll Results: Would a regular IT Joe be able to purchase a BMW in his life time ?
Yes 135 53.78%
No 116 46.22%
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Old 18th September 2012, 18:36   #256
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Originally Posted by vb-san
Its human nature to aspire for bigger brands and pamper his/her materialistic cravings.

When it comes to cars, sometimes the brand aspiration take precedence over size, space etc.

This happens with all consumer products right? I also dream to own a BMW - in a few years time
Absolutely correct! Brand value is not to be discounted as has been debated elsewhere many a time.
It is all about the Totem markings denoting the status that one may have achieved and wishes to display by obvious and visible cues.

For example why do I buy an Apple Ipad instead of a Samsung Galaxy Tab2 or 3? Simply because I love the Apple brand aesthetic and dont see a major price difference which prevents me from buying it! I know the Samsung is more functional as a laptop substitute but I dont care!

Frankly If I lived outside India and worked in a similar capacity, I would be driving about in an Audi Q3 or perhaps a Q5 instead of my Yeti. I wont do it here on account of the relatively unaffordable pricing of these international marques in India. And to be snide, at the end of the day, the same 2 litre TDI engine and 4WD system that is in my Yeti, are there in some form in both the above expensive Audi beasts! But despite all this, I still aspire to that Q3 because I simply love its aesthetic as well as the brand and its functionality, from my user perspective!

And at the end of the day, if one can afford it, even at a stretch, then why not?
After all ZNMD right?

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Old 19th September 2012, 06:46   #257
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Originally Posted by shankar.balan

Absolutely correct! Brand value is not to be discounted as has been debated elsewhere many a time.
It is all about the Totem markings denoting the status that one may have achieved and wishes to display by obvious and visible cues.

And at the end of the day, if one can afford it, even at a stretch, then why not?
After all ZNMD right?
Very well put. Brands are important signalling devices. 4-5 years ago, the Honda Accord brand, in India, was enough to convey a message that you were a professional who had arrived, or a successful mid size entrepreneur. BMW and Mercedes were only for promoters of large companies, or CEOs. I remember the buzz that ran through banking circles in Bombay when a young analyst at one of the MNC investment banks picked up a 3 series with his 2007 bonus - the general feeling among the old fogies was that the 24 year olds of today are just too brash, and have not seen a down turn.

But that almost acted as a cathartic event - with several others picking up luxury cars over the next 2-3 years. And that in an environment where both total compensation and more importantly job security in the industry have declined significantly. I suspect we will see something similar in IT as well, a tipping point at which it becomes socially acceptable for middle managers to spend on a 3 series instead of on another house.
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Old 19th September 2012, 14:17   #258
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Originally Posted by Hayek View Post
I remember the buzz that ran through banking circles in Bombay when a young analyst at one of the MNC investment banks picked up a 3 series with his 2007 bonus - the general feeling among the old fogies was that the 24 year olds of today are just too brash, and have not seen a down turn.
I see that in my wife's organization, junior analysts with their first or second bonuses go ahead and buy the C segment sedans. On the other hand the AVPs and VPs take the company transport. May be these are the people who survived the 2008 bloodbath and are extremely wary.
In my office building something has suddenly happened, where last Friday afternoon we noticed mint delivered 2 E class and 1 X3. Somewhere the tap has opened but the money is yet to reach my bank account Funny thing is there are only two people who outrank me in the building. One of them drives an i10 and another a City. So yes people are getting more adventurous and dreaming big in "IT" companies.

Last edited by acurafan : 19th September 2012 at 14:19.
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Old 19th September 2012, 15:05   #259
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Originally Posted by acurafan View Post
Funny thing is there are only two people who outrank me in the building. One of them drives an i10 and another a City. So yes people are getting more adventurous and dreaming big in "IT" companies.
Perhaps it is do with other obligations. While I dont know yours, it is possible that these first time buyers do not have (or do not prioritise) obligations such as buying a house, paying for a mortgage, etc. Of course, they may not have seen the downside of a career path.
There are also some who consider that they need to buy what they can before they get married or have kids. in which case, their obligations might increase or priorities may change.
Or its just possible they get better returns on their investments than we do?
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Old 19th September 2012, 15:30   #260
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Perhaps it is do with other obligations. While I dont know yours, it is possible that these first time buyers do not have (or do not prioritise) obligations such as buying a house, paying for a mortgage, etc. Of course, they may not have seen the downside of a career path.
There are also some who consider that they need to buy what they can before they get married or have kids. in which case, their obligations might increase or priorities may change.
Or its just possible they get better returns on their investments than we do?
Absolutely, only thing I was trying to point is that people are dreaming big these days and have different priorities. The demography is quite young in the building. Only the old hags like us still drive hatchbacks.
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Old 19th September 2012, 15:41   #261
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Originally Posted by acurafan View Post
Absolutely, only thing I was trying to point is that people are dreaming big these days and have different priorities. The demography is quite young in the building. Only the old hags like us still drive hatchbacks.
Oi! If i remember correctly from your posts in the interview thread, your company doesnt exactly hire "regular IT Joes" anyway. Right?
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Old 19th September 2012, 15:49   #262
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This has to be about priorities. I remember a conversation at the Beasant Nagar beach some time back between a guy and a girl. They were not married but probably hitched. They were planning on pooling their resources to buy an Ikon or a Fiesta. They were throwing numbers around and looking at all possibilities. The parting shot was when the guy bad mouthed TNEB for cutting of his electricity because he didn't pay it on time (no money). So car yes, electricity no.
Given a crore today, different folks would behave differently. Some would buy a BMW while others would not
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Old 19th September 2012, 15:50   #263
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Originally Posted by acurafan
In my office building something has suddenly happened, where last Friday afternoon we noticed mint delivered 2 E class and 1 X3. Somewhere the tap has opened but...
Same thing happened in my office building. In less than 1 month, there is a sudden crop of high end vehicles. Audi A6, Skoda Yeti, T-Forts, C-class, 2 w8 XUVs, a plethora of Honda City's. Gosh! Where is that elusive tap??!
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Old 19th September 2012, 16:26   #264
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Oi! If i remember correctly from your posts in the interview thread, your company doesnt exactly hire "regular IT Joes" anyway. Right?
Good memory !! The Non-regular IT Joes are 20 out of 200 in this building. Others are what you call product company's IT Joes. The most expensive car driven by the non-regular Joes is so far Innova .

Need to see what happens after the bonus and RSU vesting for the young guys amongst the non-regular Joes.
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Old 19th September 2012, 18:12   #265
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Like people have mentioned earlier in this thread... Its all about priorities!

For the average salaried professional working in MNCs and drawing between 6-24L per/year (in hand) , the range would be close to :

Real Estate (HOME)
: Would be comfortable to Invest upto 3-5x of their annual income for a HOME.

Conveyance (CAR) : Would be comfortable to Spend upto 0.5-1x of their annual income for a CAR

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Old 19th September 2012, 18:20   #266
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Originally Posted by vikash49
Like people have mentioned earlier in this thread... Its all about priorities!

For the average salaried professional working in MNCs and drawing between 6-24L per/year (in hand) , the range would be close to :

Real Estate (HOME) : Would be comfortable to Invest upto 3-5x of their annual income for a HOME.

Conveyance (CAR) : Would be comfortable to Spend upto 0.5-1x of their annual income for a CAR
I think given the Indian penchant for careful behaviour and savings, the figure could be around 5x of annual income for a home, specifically apartment.
For a car, I believe the value would be closer to 50% of annual income. Very rare cases would go to 100% of annual income for a car. Unless, of course, they have saved substantial amounts and paid a massive downpayment, say around 50 to 60% downpayment, in which case they may be tempted to fly up to the next segment of vehicle.
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Old 19th September 2012, 18:46   #267
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I think the percentages don't work across the board. For eg. a 6 Lakh annual income guy will probably buy a 3 Lakh rupee car - its not implausible at all. But I don't think a guy earning a crore a year would buy a 50 Lakh rupee car.

The other aspect is that if you're lower and earlier in your career the chances are high that you're only spending on a car EMI and mortgage EMI hasn't hit you yet (in my experience even rental outflows are usually much lower than mortgage payments). In slightly later years the house EMI takes priority (along with other family obligations as well in many or most cases) and therefore car budget as a percentage of salary would not be as high as 50% in all likelihood.

Just my 2 cents.

Last edited by Axe77 : 19th September 2012 at 18:51.
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Old 19th September 2012, 20:09   #268
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Originally Posted by shankar.balan

I think given the Indian penchant for careful behaviour and savings, the figure could be around 5x of annual income for a home, specifically apartment.
For a car, I believe the value would be closer to 50% of annual income. Very rare cases would go to 100% of annual income for a car. Unless, of course, they have saved substantial amounts and paid a massive downpayment, say around 50 to 60% downpayment, in which case they may be tempted to fly up to the next segment of vehicle.
Agree with you on the first part,not on the second part. For car it's 1x and not 0.5x.
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Old 19th September 2012, 20:45   #269
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Originally Posted by Axe77
I think the percentages don't work across the board. For eg. a 6 Lakh annual income guy will probably buy a 3 Lakh rupee car - its not implausible at all. But I don't think a guy earning a crore a year would buy a 50 Lakh rupee car.
Great point. Agree fully with this. People earning 1 cr take home would probably be quite happy with an Accord type car or at best a corporate edition 3 series.
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Old 19th September 2012, 21:25   #270
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I personally feel most IT guys would NOT prefer to buy a BMW while remaining salaried and working in a regular IT company in India.

To answer the question "Is it not possible to buy a BMW while working in a regular IT company in India" I guess it is possible but definitely would not be a smart\wise option.

This is what I feel....

1) Buy a BMW in India and end up paying most of the salary for EMI + Maintenance.

2) Not being able to think of investing on anything else for years altogether say like buying a house, kids education, family vacation, personal saving etc...

3) Very soon the Joy of driving the ultimate machine will turn out to be a burden rather than enjoyment.

Having said that I do own a 335xi here in the US but when I was in India, working for an US NMC I was comfortable driving around an i10 and never ever though of investing on a BMW (It was simply out of reach for me).

With the i10 I was able to enjoy my drive, plan trip with friends, see places and still save a bit every month.

Owning any car in the US is much more easier that in India.
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