Has the slump in the economy influenced your car purchase decision?

speedzak · 11th October 2008, 07:59

Option 3.
It will effect the income for sure. But cars where never decided according to that. I think it won't change soon.

If something interesting pops out or gets launched, everything will be forgotten.

Aditya · 11th October 2008, 08:03

I have decided not to buy a car for now. I'm a poor man, you see.

ajmat · 11th October 2008, 09:04

Well, one car is fully paid for. Other is on company lease which ends in Jan. No financial justification for a change. If company increments are not in line, I will have the current lease cost in my pocket as disposal income.

If the RS proves expensive to run, I will reduce usuage and use the swift

SkyWalker · 11th October 2008, 09:18

No change in my plans. However if the Sales slumps badly there might be bigger discounts. Keeping my plans open. I guess i would buy the car in 3 months anyway.

BaCkSeAtDrIVeR · 11th October 2008, 10:05

Why is "prices in the 2nd hand market have crashed.. now I can afford a sedan than a hatch" not an option?

Raja · 11th October 2008, 10:51

I had considered changing my car, but with residuals falling, I plan on keeping the current car and building up my cash reserves for other investment opportunities. e.g. Buying another property, buy shares when the market reaches rock bottom etc...

sam003 · 11th October 2008, 11:04

I have decided not to buy car right now, may next year first or second quater when market will become a bit stable. I have to make sure I have enough liquidity and money flowing in to pay my EMI.

Sahil · 11th October 2008, 11:44

Quote:

Originally Posted by lamborghini

Hey sam,

I don't know what option to choose. My parents plan on buying me a car in the U.S.A, but the economy has definitely made them think and since a car is a necessity for me, the budget has gone down considerably.
So I really don't know what to put. I think you need to get another option for reduced budget.

The dollar rate is what ruined the part for you, i guess.
Try looking through some used car listing-craigslist,ebay motors,etc. With the way the US economy is crashing, you are most likely to get a steal deal,especially on SUVs.

As for the poll, i would be buying a couple of cars in the coming months since most of our cars are 4 years old and due for change.

theMAG · 11th October 2008, 12:39

Definitely the third option. Its during times like this that atleast the salaried populace would want to go extra cautious with their money burn-rates. Of course, everyone would probably be in the same frame of mind, but degrees might vary.

ankit.jhamb · 11th October 2008, 12:40

since i had bought a car recently,i voted for the first option.I think that now people will start shifting to more economical options,a slowdown in the market will also mean bigger discounts.

gkrishn · 11th October 2008, 12:47

My car is now 4 years old. The loan was closed a year ago. There was a possibility of a new one. But now i have to closely watch my company's quarterly results, next year hike. etc.

There is a slump in job market. Few peer companies have either rolled back hikes or have said "don't expect the usual hikes next year". Guess the hr department will use this as a excuse for next years hike. In my opinion '09 will be a hard year. So as of now postponed purchase by one year.

Also, when i brought the current car, the total intrest amount i paid was just 10% of the loan amount. Umm...

GTO · 11th October 2008, 13:18

Great thread! My situation is a combination of poll options 3 & 4. Not really affected by the economic slump (*touches wood*), but I expect property prices to get even more realistic in the coming months. Thus, delay plan for a car and pick up property for a steal!

amit · 11th October 2008, 13:29

In my case it's option 4. On October 23, my SX4 is going to be year old and my Palio 5 years old.

Lets see how the new cars in the market do. G3HC and Fiat Linea in the C segment and Hyundai i20 in the premium hatch category are two new cars coming up. Sales of these cars should give us a good idea of how confident buyers are of the future.

Quote:

pick up property for a steal!

Quote:

the best place to invest any money that I may have could be in the property market,

I am planning to do the same

.

Zappo · 11th October 2008, 13:33

I have postponed any plans that I ever had to buy a car in the next 1 year, probably. It may not have anything to do directly with the state of the economy and my income. However indirectly it has certainly influenced my decision. The current interest rates on new cars are just atrocious. Buying today will simply mean getting saddled with that rate for the entire tenure. I expect the economy to improve somewhat in the next 1 year and the loan rates to improve.

Till that happens the best place to invest any money that I may have could be in the property market, if at all. If the property rates go for another tailspin I expect properties get deep discounted to the extent of 50% of what was prevalent even 6 months back.

anilkalvani · 11th October 2008, 14:23

As they say you shouldn't put your eggs in one basket, i have evenly distributed my investments in stocks, debentures, fixed deposits, gold & property so even though i am affected in all the investments, its still a safer bet. Its not only now but always one should not go OTT or be extravagant in their puchases, as rightly mentioned by GTO in a older Post (retaining your 5 yr old car), i think its apt for this type of a situation. As my dad says... you never know what the future beholds, its always better to save up for a rainy day.

btw i have voted for option 3.

View Poll Results: This is what the economy did to my decision
I bought a car recently (3 months)	41	17.30%
I am going to buy a car in the near future (3 months)	37	15.61%
I have decided not to buy a car for now	92	38.82%
It makes no difference to me	48	20.25%
I will now buy a more economic car.	19	8.02%
Voters: 237. You may not vote on this poll

11th October 2008, 07:59	#16
speedzak BANNED Join Date: Mar 2006 Location: India Posts: 4,347 Thanked: 27 Times	Option 3. It will effect the income for sure. But cars where never decided according to that. I think it won't change soon. If something interesting pops out or gets launched, everything will be forgotten.
	() Thanks

11th October 2008, 08:03	#17
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,835 Thanked: 77,063 Times View My Garage	I have decided not to buy a car for now. I'm a poor man, you see.
	() Thanks

11th October 2008, 09:04	#18
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,863 Thanked: 27,973 Times View My Garage	Well, one car is fully paid for. Other is on company lease which ends in Jan. No financial justification for a change. If company increments are not in line, I will have the current lease cost in my pocket as disposal income. If the RS proves expensive to run, I will reduce usuage and use the swift
	() Thanks

11th October 2008, 09:18	#19
SkyWalker Senior - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 1,531 Thanked: 136 Times	No change in my plans. However if the Sales slumps badly there might be bigger discounts. Keeping my plans open. I guess i would buy the car in 3 months anyway.
	() Thanks

11th October 2008, 10:05	#20
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Why is "prices in the 2nd hand market have crashed.. now I can afford a sedan than a hatch" not an option?
	() Thanks

11th October 2008, 10:51	#21
Raja BHPian Join Date: Apr 2007 Location: Pune Posts: 419 Thanked: 69 Times	I had considered changing my car, but with residuals falling, I plan on keeping the current car and building up my cash reserves for other investment opportunities. e.g. Buying another property, buy shares when the market reaches rock bottom etc...
	() Thanks

11th October 2008, 11:04	#22
sam003 BHPian Join Date: Nov 2006 Location: Delhi Posts: 533 Thanked: 67 Times	I have decided not to buy car right now, may next year first or second quater when market will become a bit stable. I have to make sure I have enough liquidity and money flowing in to pay my EMI.
	() Thanks

11th October 2008, 12:39	#24
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Definitely the third option. Its during times like this that atleast the salaried populace would want to go extra cautious with their money burn-rates. Of course, everyone would probably be in the same frame of mind, but degrees might vary. Last edited by theMAG : 11th October 2008 at 13:13.
	() Thanks

11th October 2008, 12:40	#25
ankit.jhamb BHPian Join Date: Jan 2007 Location: new delhi Posts: 573 Thanked: Once	since i had bought a car recently,i voted for the first option.I think that now people will start shifting to more economical options,a slowdown in the market will also mean bigger discounts.
	() Thanks

11th October 2008, 12:47	#26
gkrishn BHPian Join Date: Aug 2004 Location: Bangalore Posts: 626 Thanked: 93 Times View My Garage	My car is now 4 years old. The loan was closed a year ago. There was a possibility of a new one. But now i have to closely watch my company's quarterly results, next year hike. etc. There is a slump in job market. Few peer companies have either rolled back hikes or have said "don't expect the usual hikes next year". Guess the hr department will use this as a excuse for next years hike. In my opinion '09 will be a hard year. So as of now postponed purchase by one year. Also, when i brought the current car, the total intrest amount i paid was just 10% of the loan amount. Umm...
	() Thanks

11th October 2008, 13:18	#27
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,731 Times View My Garage	Great thread! My situation is a combination of poll options 3 & 4. Not really affected by the economic slump (touches wood), but I expect property prices to get even more realistic in the coming months. Thus, delay plan for a car and pick up property for a steal!
	() Thanks

11th October 2008, 13:33	#29
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,699 Times	I have postponed any plans that I ever had to buy a car in the next 1 year, probably. It may not have anything to do directly with the state of the economy and my income. However indirectly it has certainly influenced my decision. The current interest rates on new cars are just atrocious. Buying today will simply mean getting saddled with that rate for the entire tenure. I expect the economy to improve somewhat in the next 1 year and the loan rates to improve. Till that happens the best place to invest any money that I may have could be in the property market, if at all. If the property rates go for another tailspin I expect properties get deep discounted to the extent of 50% of what was prevalent even 6 months back.
	() Thanks

11th October 2008, 14:23	#30
anilkalvani BHPian Join Date: May 2008 Location: Bandra West, Bombay Posts: 633 Thanked: 89 Times	As they say you shouldn't put your eggs in one basket, i have evenly distributed my investments in stocks, debentures, fixed deposits, gold & property so even though i am affected in all the investments, its still a safer bet. Its not only now but always one should not go OTT or be extravagant in their puchases, as rightly mentioned by GTO in a older Post (retaining your 5 yr old car), i think its apt for this type of a situation. As my dad says... you never know what the future beholds, its always better to save up for a rainy day. btw i have voted for option 3.
	() Thanks