[landcruiser123]

Originally Posted by PearlJam

We don't know the OPs state of finances, annual income, savings, etc.

Safe to assume he's funding his car with borrowed money whether a loan or through his business(for tax purposes.)

I'm not saying that he can't afford it, rather he's being pragmatic and evaluating the current situation before purchasing a depreciating asset.

If he was just using a small chunk of personal savings, he probably wouldn't have posted.

[Turbanator]

Guys, another thing to factor is the rate of foreign exchange. USD is now 76 and I don’t think it’s going to come back to old levels. Most of the premium cars even if assembled here have a high Import content and depending on the demand the prices will be raised quickly. People looking to buy an Endeavour or Fortuner should not hold the purchase unless very compelling reasons. Things will settle quickly in my opinion, last few days have been positive if viewed from a global perspective.

[locusjag]

Originally Posted by Turbanator

Guys, another thing to factor is the rate of foreign exchange. USD is now 76 and I don’t think it’s going to come back to old levels.

I'm a dummy when it comes to understanding forex rate movements. Will 76 be the new normal then, even when things get back to how they were? If yes, then as you said, buying a new car will go even further beyond the common man's reach.

The funny thing is - as an upper middle class salaried person, I've already decided that buying new cars is uneconomical. (A hatchback with proper features comes close 10 lakh Rupees today on road.) What about our less fortunate countrymen? We cannot expect car penetration to rise quickly in India since most aspiring first-time buyers are scared of buying used cars.

[SaiSW]

I'll probably wait for this epidemic to pass, and by that time, hopefully Ford stops whatever they are smoking, gets their sense back and re-introduces SYNC 3 to the Figo trio, or atleast one of them, maybe the Freestyle.

Or maybe the SYNC 4? A man can hope

[Turbanator]

Originally Posted by locusjag

The funny thing is - as an upper middle class salaried person, I've already decided that buying new cars is uneconomical.

I fully understand what you are trying to convey. After paying 30% + income taxes, one has to pay close to 50% GST and anywhere between 10-20% Road tax, high fuel price and Toll charges, there is no justification to buy a car.

I hope, some day our politicians take a call and reduce GST on certain price/ segment of cars. It’s ok to charge higher Taxes on expensive cars or invoiced to companies as they claim benefits but they must work out with something for regular middle class folks.

[drmohitg]

I would wait simple for the reason that due to sales going further down, you will be offered a better deal in the coming days and weeks. Since you mention that it is not an urgent purchase, why not wait it out.

[blueeyed]

Hi bhpians,

My concern is about the periodic maintenance service of the vehicles at this time of covid-19 outbreak. My EcoSport is due for its first year periodic maintenance service next week. And at this time when the whole world is suggesting minimum exposure and advocating self quarantine as a precautionary measure, I do not feel confident enough in giving my car to the hands of few strangers and driving it back home. At the same time, I am a bit worried about future warranty claims(hope not!) being rejected due to a late maintenance service(if i opt to not do the service on time) at this time of a pandemic outbreak.
I think companies should come forward and issue a notice regarding the relaxation in time period for maintenance service at this point of time.
I know I sound stupid, and human health and life trumps everything else. But as a bhpian, I can't but think about my cars and fellow car owners who may also be thinking alike or is in such a situation.

Sorry for going off-topic. Couldn't find another thread. Mods please move or delete the post if you think so.

[SaiSW]

Originally Posted by blueeyed

Hi bhpians,

But as a bhpian, I can't but think about my cars and fellow car owners who may also be thinking alike or is in such a situation.

Sorry for going off-topic. Couldn't find another thread. Mods please move or delete the post if you think so.

Your concern is understandable. I also had the same concern when I gave my car for service, they assured me that all the servicemen are required to maintain proper hygiene and they provide sanitizers in the service bay area for all the servicemen to use.

Doesn't necessarily mean they will use it but it is a relief for me. If not for others, atleast to maintain one's own health, you can expect them to just walk upto the sanitizer providing area and use it.

You should contact the service manager or if possible GM and enquire about it. If you are convinced the management is as diligent as my case, then you can leave it there.

[adamkathy23]

Slightly Off topic, With this Epidemic affecting so many lives, specially people who survive on daily wages(Rickshaw pullers, Labourers, Domestic helpers/Rag pickers etc), Its hard to imagine the panic it causes in their lives, if it has made us, more fortunate ones, so restless.
So in the bid to do something about it, i bought Rice, Atta, Biscuits & Soaps. Made small packets enough to last for a family of 4 for 2 weeks & distributed the same.

I had saved money to buy a new Car, But i guess that can wait, this cannot. I reached out to 13 families, & plan to further my reach in days to come.

These are difficult times, lets stay positive!

[AZT]

If you really need it, wait a month or two and squeeze out a better deal. Auto sales are definitely crashing with people backing out of deals and you should get a good bargain. On the flip side, exchange rate falling could make some cars more expensive.

[gautam109]

Originally Posted by GTO

This is the time to freeze all big purchases.

Heartily endorse this. If possibility of loosing discounts is weighing on you, I have a slightly out of the box suggestion.

Invest say 30%-35% of the money you were going to spend on the car into a good equity fund. The return from this (mind you, will likely take 2-3 years to pan out), can possibly more than make up for any loss of discount in future.

Simplest option is a "Nifty ETF" (Exchange Traded Fund). One can buy units over the exchange, just like shares. These track the Nifty index (they invest in the same stocks that constitute Nifty in the same ratio). So essentially they invest in the top-50 largest (in terms of marketcap) listed companies of India.

Or go with a mix of Nifty and Nifty Next 50 index (maybe 70-30 ratio). The Next 50 index, as name suggests, tracks the next 50 companies below the Top-50

Amongst Nifty ETFs, one name I know is "NIPPON INDIA ETF NIFTY BEES".
And for "Nifty Next 50" there is "NIPPON INDIA ETF NIFTY JUNIOR BEES"

There are plenty of other index funds, some tracking nifty & nifty next50, some tracking sensex or various other indices. Then there are more exotic options like actively managed Mutual Funds, PMS funds etc. Feel free to PM if you have queries.

PS: Equity investing does come with risks. And you also need to "forget" about the money for at least 3 years. And be able to ignore temporary ups/downs without loosing sleep. (But given that you were going to "spend" the money anyway, it should weigh less).

PPS: First priority- have a sufficient emergency fund locked away in safer instruments - FDs etc. before investing serious money in equity.

[spoth001]

Hey guys, I am in same boat here. I own a 8th Gen Civic (08) which I purchased in 2015. I have not used it since last 9-10 months as it started to leak at drivers seat and ended up damped during entire rainy season. I take the blame here as I have not paid attention to it. The car is in perfect working condition and I am ramping up the interiors (spending around 25-30K INR).

My brother owns a Vento (2014 I guess) and wants to sell that ASAP. Now, I am also giving it a serious thought of selling my Civic. Me and my bro have decided to go for a premium car which we will co-use (new Civic or used BMW 3 series with extended warranty package (Navnit Motors)).

We are getting sweet deals from everywhere but Covid 19 is confusing my decision . Please note that driving a car in Mumbai for me is a necessity but for my brother it is not. He can always use his better half's car if required. I spend around 500 INR every day on uber taxi/autos which is really not preferred but I have no option. With my Civic however though, it turns out around 300 INR every day which is cost saving + no damn rejections from uber drivers. They ask for destination and cancel the ride almost every third booking I do with uber. Ola sucks so I stay away.

I can spend around 30K INR and put my Civic back in action and at same-time I do not mind opting for an upgrade (Later idea is too tempting to resist ).

[gururajrv]

I could sound a bit careless when I say this. But, we really do not know what’s going to happen to the environment and we the people too! So, while we still can, let’s go get one for ourselves and enjoy the life as it comes

Don’t worry about the market, future etc. everything is uncertain the way I see it now. So, just go ahead with the purchase and fulfil the desire. By gods grace everything should revert to normal soon in few months - let’s hope because that’s the only thing we are allowed to now after screwing up the nature to the brim and seeing it fighting back.

Afterall, Thanos was always right

[rahul_jo]

Originally Posted by PearlJam

We don't know the OPs state of finances, annual income, savings, etc. For all we know, if the money being spent is a fraction of total assets/income, then it makes no dent at all. Buying today is as good as buying tomorrow/next month/next year.

True. I can't mention the exact number details here and apologies to everyone for not mentioning this in my opening post.

However, I follow 2 very clear rules around cars.

I would never spend my working capital on a depreciating asset.

And, I would never buy a car on a loan (if I can't afford it cash down, I won't ever buy it). No point in paying 30-40% more in interest fees for something that already loses value.

So this money was actually set aside with the sole purpose of buying a car and it doesn't affect my financial structure.

P.S My opinion above on never buying a car on loan is just a personal belief and there is no judgement towards anyone who does. Hope it is taken in the right spirit.

[dark.knight]

Originally Posted by rahul_jo

P.S My opinion above on never buying a car on loan is just a personal belief and there is no judgement towards anyone who does. Hope it is taken in the right spirit.

Your buying mantra is the same as mine, since birth I've been taught never to borrow, just make do with available resources until we can afford better on our own. Love it. Cars specially needn't be bought on loan at all I feel, of course as a businessman I know why its done but the efforts of EMI, earmarking a portion for EMI, adjusting the deductibles etc is not worth the meagre savings it may give, if we account for interest on total unpaid principal amount left in bank.

Boring finance talk aside (apologies), given what you've mentioned above, this whole thread is unnecessary, you've clearly accumulated the funds, of which you feel there isn't much use for, other than to buy a car with, I feel you should walk over to the showroom today, hand them the cheque and close the deal.

Buying a car is only worth its few moments in happiness, nothing else, so if you want that today, get it today without thinking much. In this present scenario, car buying is even less of a deal than ever before, an uncertain global health and financial situation awaits and we can only know the full situation in months, if not a full year. If something has to be done/bought, do it now. The positive in that is the economy will be still churning and not get completely gutted.

Above all, I hope this virus becomes a distant memory in due course. Never before has a potent virus, combined with fear-mongering, combined with blatant disinformation and implementation of tight regulations crippled the ways of earth like this before. We can do it with a month or 2 of extreme precaution, bare minimum socialization, and if people didn't know it already, good hygiene and coughing/sneezing manners.