[AirbusCapt]

There seems to be some underlying pessimistic thought process, a negative outlook towards buying luxury automobiles in this forum. The same member who buys a 20 lakh car on a 30/40 lakh gross income suddenly says one shouldn't spend 60 lakhs on a vehicle with a one crore gross income. Why is this? The economics are the same in both cases.
The second sentiment is to not buy a luxury car on a loan. This is only said by people who don't know how to leverage finance. If your investments are earning more than the loan interest rate, keep the investments and take a loan. Plus don't do the mistake of completing the whole loan tenure, pay off the principal early (use your bonuses, increments etc) and save big time on extra payment. When buying a luxury brand, go for lateral upgrades to make maximum for your buck.

[Raghu M]

My take - NO. If you buy a premium car on loan, then definitely NO. Unless there are some really strong reasons, buying a premium car on loan is a strict no for me. Of course, if you have the money to splurge, then fine. For me, I have a constant fear of dents and dings on my car. You have the never ending section of horrendous drivers/bikers in India that will make your jaw drop every now and then when they pass by your premium car. The safety features are stunning but I think cars like Fortuner, Pajero and other big vehicles ensure that kind of safety as well.

If you have idle money sitting around and the taste for cars, then yes. If you want to invest the same money and buy something at 50% that cost, then not worth it. Since the India car market is ever evolving, it will be interesting to see how people vote say after 5 to 7 years. It's the age of compact SUVs now, it may be premium cars later. Who knows!

[Raghu M]

Originally Posted by AirbusCapt

There seems to be some underlying pessimistic thought process, a negative outlook towards buying luxury automobiles in this forum. The same member who buys a 20 lakh car on a 30/40 lakh gross income suddenly says one shouldn't spend 60 lakhs on a vehicle with a one crore gross income. Why is this? The economics are the same in both cases.
The second sentiment is to not buy a luxury car on a loan. This is only said by people who don't know how to leverage finance. If your investments are earning more than the loan interest rate, keep the investments and take a loan. Plus don't do the mistake of completing the whole loan tenure, pay off the principal early (use your bonuses, increments etc) and save big time on extra payment. When buying a luxury brand, go for lateral upgrades to make maximum for your buck.

Agree to your point. My opinion is, if you do not have investments and yet buy a premium car on loan, that is bad finances. If you have money that is invested in places where you get 2X or 3X returns in a span of 5 years, then taking a premium car on loan makes sense.

[1.2TSI7DSG]

In 2013, when I got my VW 1.2 tsi, it was relatively premium (20% over a comparable for that matter even the se trim polo mpi)
I haven't regretted it. The same holds true for the cars we are talking about. Very similar to man eating tigers- if you taste blood you just want it.

I surely agree to gto's comment on buy it outright. If you have loan etc get a practical car.

[CosmicWizard]

I am a recent convert on this. Used to be one of those who, in spite of having the means, loathed the idea of shelling out so much on tax for these high-end cars. But then this wise man once told me: "Twenty years down the line, you will be more regretful of things that you did not do than of the ones that you did". So yeah, bring em on

[armaan_singh]

To be completely blunt about it, I voted Yes and that's entirely for the social mileage attached with these cars, I know for a fact that the Skoda Superb is a much better packaged car than say the 2 series, yet if I was going to spend 38 big ones on a car, I would stretch the wallet and go for the 2 series just for the BMW tag.

Secondly, the advantage with luxury vehicles is that even if you take the base variant you really don't have to worry because mostly all the luxury features and feelings one expects are present as standard.

So if I really want an auto dimming IRVM I don't need to head from the base model to the top model.

[v1p3r]

Is it worth buying a premium luxury car in India - no.

A 3/C 5/E 7/S is priced much higher than it is in other countries - you can feel free to take the absolute pricing or the PPP value into account. Our roads are horrible, we can't do any decent speeds, and 99% of the people who buy these cars are going to sit in the back seat 99% of the time.

That is the rational, correct, and logical explanation.

Which you will instantly forget if you are an enthusiast and have the (mis)fortune of driving a 6 cylinder German* car or anything above. The build quality, the audio, the brutal thrust from a sizeable engine, the composure over all kinds of surfaces, all of these massage your soul in a way that few other things can. Anyone who claims that a mid-level European or Japanese car is similar is either deluding themselves or has never driven such a car.

And then there are the looks, exclamations, and congratulations - friends, passers by, even random enthusiasts at traffic lights. If your ego needs a massage, you are well provided for.

*Exceptions include Volvo, JLR, and Lexus/Infiniti/Acura.

Originally Posted by AirbusCapt

The second sentiment is to not buy a luxury car on a loan. This is only said by people who don't know how to leverage finance. If your investments are earning more than the loan interest rate, keep the investments and take a loan. Plus don't do the mistake of completing the whole loan tenure, pay off the principal early (use your bonuses, increments etc) and save big time on extra payment. When buying a luxury brand, go for lateral upgrades to make maximum for your buck.

I pity the person who buys a depreciating asset with a lump sum. My benchmark is to spend <10% of annual income on cars. I don't always follow this benchmark.

[charanreddy]

I don’t have an opinion on this as I haven’t bought one yet. I will be lying if I did not have wet dreams about a BMW 330i. However I am a salaried class individual who pays 33 paise direct income taxes on every rupee earned and about 20 paise other taxes like sales tax and VAT on every rupee spent. Take away savings and future proofing and living expenses and the remainder is a very little % of earned income. Practically speaking buying a 330i may give me temporary high, but I know I will be in for a world of regret for the upcoming 10 years. So NO. As much as I keep watching autocar reviews of the 330i, very unlikely that I will ever buy one atleast in the immediate future.

A used Camry on the other hand may still be on the cards once my Nexon shows its age.

[yd_gli]

Voted No. Had you asked me this question 10 years ago I would've probably said yes. I believe the lure/attraction towards a luxury car in India is peaks somewhere around the 30-40 age bracket. It is that time in life when one wants to make his/her presence known and still has the hot blood in them to throw these vehicles around the bend with scant regard for money/safety.

Over the last 5 years, my preference has moved from premium to ruggedness. I would take a Thar/Fortuner/Endeavor any day over an X5, C or a Q5. I do a quite a few long distance road trips and I wouldn't dare take the Germans beyond a few hundred kms from home. They garner too much attention in rural areas and getting them repaired is basically impossible unless you are in the metros. Heck, even Tier 2/3 cities don't have parts available most of the times.

I am a strong believer that India isn't the country for these machines. Money aside, the problems associated with vandalism, maintenance cost, unwanted attention etc dilute the experience of owning one. We have several of these in the extended family and 9 times out of 10 it is the Creta or Seltos that is the choice of car for daily driving and short outstation trips. The hassle of driving a luxury car will get old very fast in India.

If you get a good deal on a used one and don't need EMIs to buy one then maybe but otherwise its not worth the effort to own one.

Oh, and I also refuse to pay the Indian govt the additional import tax on these machines. As a salaried employee, I donate enough to this country via income tax and other cess. I don't want to additionally line the pockets of others for a small increase in driving pleasure.

[buz]

I am not sure if anyone had this take on this topic but I had posted about 9 years back when I bought the Skoda Laura 1.8 TSI Ambiente. For 15 L, it was a stretch in that time and was pretty luxurious considering I drove an Opel Corsa for the 8 years prior to that. But if you ask me, did i get commensurate value for the extra 10L compared to the Corsa? - ABSOLUTELY YES! The Audi engine in the Laura and the really plush interiors along with the electronics of that time, it was a hoot to drive. I christened it a "TANK WITH A SPEEDOMETER" and it was just that. Fast forward now to a year back and we bought a BMW X1 after researching and test driving all vehicles in that segment. Spent 20L more than the Laura. Question arose again - did it live up to the value? Frankly a hard one to answer if you are moving from a Skoda. But then the way the car handles turbo (despite being a diesel), I had to christen it as "A MOTORCYCLE ON 4 WHEELS". The manner in which the car handles Indian roads and highways (leaving the compress or bad roads aside which we all anyway have to handle), it makes for driving on single carriageway roads an absolute pleasure which I couldn't enjoy in the Skoda. The manoeuvrability despite being a diesel SUV is absolutely worth the extra bucks. So my answer on whether the luxury segment is worth it or not will reside on simply one fact - "Does the car make you feel good?" Mine certainly does.

[Lobogris]

Originally Posted by AirbusCapt

The second sentiment is to not buy a luxury car on a loan. This is only said by people who don't know how to leverage finance. If your investments are earning more than the loan interest rate, keep the investments and take a loan. Plus don't do the mistake of completing the whole loan tenure, pay off the principal early (use your bonuses, increments etc) and save big time on extra payment

This is a common misconception. If the person is so savvy that they can beat a large bank in generating returns then why don’t they have even 50 lakhs saved up? A person with such good financial acumen should have done well in their investments and should have something to show for it. A person considering the purchase of a 50 lakh car should have liquid savings of at least 250 lakhs in order to justify the expense. Of course there can be exceptions like a person who has just started a high paying career and needs such a vehicle for professional reasons like meeting or high end clients. If it were so easy to generate high returns from investments, large banks with far higher resources, inside information and top professionals would do so rather then lend their money for home and auto loans.
Coming to the question at hand, it is fine to buy a luxury vehicle if you have the capacity. It would be foolish for a person earning 10 lakhs a year with no assets but it would be logical for a a person with an income of 2 crores and assets of 50 crores. I have never understood why many rich people choose to live frugally without basic amenities. Personally, I would buy it used for less than 30% of the original price. Sadly in India most places don’t have proper parking and many roads are tiny and crowded with unruly traffic.

[DudeWithaFiat]

Most of the comments seem to be saying, "If you have money, yes, please go ahead, but if you are making only barely enough to afford a Merc, then please don't".

But isn't that true for all the cars regardless of A/B/C/D segments?

[shobhit.shri]

After reading all the posts here, I think the only question that remains is at what point you, the buyer, can "personally" afford it. Nobody needs more than a 10L rupee used car.

Factors are:

• Net worth
• Monthly income
• Age, or other liabilities
• On a scale of 1 to 10, how important a car is for you?

30 years old, loan-free with 100LPA, and 2 cr assets and zero interest in cars: Yes
40 years old with 25LPA and only assets being the house you are living in, but you check teamBHP every day: No. sorry for hitting the raw nerve

Guys, now help me in creating a mathematical equation to capture this and we will be done with this discussion forever .

[Quinn]

I think its quite simple:

• If I have lots of money and ability to maintain, well yeah. Long drive in a luxury German machine is worth it. If I can today, I will definitely warp out in Enterprise. But probably only if I am blessed with crores of cash and acres of estates already and my business earnings also match that much.

• On the other hand, If the car is mainly a need and the money that I earn or save or inherited is just about sufficient for other goals such as house or kids education or medicals etc, then definitely the luxury machine might actually take away all the luxury. For such class of people, a house with a crore or two will exhaust everything else. If you plan very young and do smart investment to gain a lot of money, may be there is a chance but then people tend to look at other things at that stage.

Personally, I saw guys buying used luxury cars and then getting worst of it just because kids in their parking lot scratched it and their parents show careless attitude. I have seen even so called educated morons behaving like they own the lands and show attitude. I get upset when some idiot parks his bike next to my RE without minimum distance and does not even park in center-stand. At one time, my rear tail light got broke. One of my friends side mirror was broken because some moron hit it with his bike in office parking.

With rich, these things may not happen and even if it happens, they have the power to handle. For a not rich person, he or she probably wont mind if things happen to their activa or beater cars.

[skhattar]

Beauty lies in the eyes of the beholder. As said by many, its subjective.
1.Does it make financial sense - No. Depreciates like no tomorrow. Service costs are astronomical.
2. Does it put a smile on your face everytime you drive it - Yes. I drive a F10 520D Msport. I appreciate the design language used for this model. The creases on the bonnet are phenomenal. The way the car sits is engaging. Full LED adaptive lights make driving at night very comfortable.
3. The seats , driving position, i-drive , speed dials, steering feel etc all are meticulously designed. Exhaust note is subtle with no drone.
4. Ofcos the gearbox and engine are a gem. Effortless acceleration all day long. I recently did a 1100 km roadtrip in a single day and the car performed flawlessly.
5.If these manufacturers charge you an arm and a leg, then certainly they give you extra-car for the money. Needless to the say the taxes in our country make these cars more expensive than they should be.
There are few cons as well but this not a review for F10. So, yes it makes sense to me. One Life!

Life is Good!