[arunabh002]

Originally Posted by ramnaresh_2000

Assuming you buy 18L vehicle and pay 3 lakhs as down payment and 15 lakhs as loan, at an interest rate of 7% you will be paying 2.82 lakhs interest in 5 years. The vehicle cost now is 20.82 lakhs. Resale of Skoda is no Maruti or Toyota.

Actually, the company I work for has a Company Leased Vehicle policy which will finance my car (no down payment) and deduct the EMI from my taxable income. So in 4 years I would save ~₹8L in taxes. Deducting the interest paid, I would save ~₹3.5L. So the ₹20L car will effectively cost me ₹16.5L.
And I don't really worry about resale prices. I believe that the memories and fun I will have with that car in 10 years will be worth it, even if I gave the car away for free

[amit1agrawal]

In Bengaluru, used cars retail for 70 to 80% of new for less than 4 years old and less than 40k kms. I have been passively looking for used car but didnt find any value in it when one can buy a new one by paying about 20% more. The cars are priced so high that you dont even feel like negotiating and they do get sold at high prices. Most of salaried folks wont have so much cash and taking a used car loan doesnt make sense at all (personal loans offer better rates). New car have benefits of owning and taking car of your car from day one with proper run-in, maintenence etc. I have deliberated on used car a lot but unless you strike a rare deal possibly because the seller to desperate for the sale I no longer find value in used car market here.

Maybe it's only Bengaluru specific phenomenon as I do see used car rates are quite attractive in Mumbai and Delhi.

[Waspune]

It’s quite simple! If you love driving (like you love riding) and can spend 20 lakhs then going for the 1.5 Slavia MT makes a lot of sense. I believe this car in this trim would provide you the best driving feel in this budget.
Also with the power/torque on tap it’s future proof as well so keeping it for 10 years shouldn’t be an issue.

[amit1agrawal]

Originally Posted by arunabh002

Actually, the company I work for has a Company Leased Vehicle policy which will finance my car (no down payment) and deduct the EMI from my taxable income.

A 20L loan for 4 years with 7.5% interest rate would cost you 23.2L. So your actual difference is nearly 7L.
Let's consider from other angle. You are 29 and assuming married with no kids. You can make impromptu plan to remote getaways staying in place with basic amenities and have fun in life. After having a kid your life will turn 180 degrees and you won't be able to do such getaways and rare if you manage to do so till the kid grows old. Then also you would be dictated (if that is the right term) by preferences of wife and now kids for vacations.
In short if you can afford it even if it's a bit of stretch do it now; this time and situation will not come back.

[BaCkSeAtDrIVeR]

Originally Posted by arunabh002

- Which regret will be more painful in the future?

At half a century mark, only things I regret are those that I could have, and did not. The regrets over spending too much, or spending on something that turned out to be a dud were quickly forgotten.

Read that carefully again. I just said my experience, and nothing about your question about a proposed ddecision

Oh well, wait. Never regretted not taking a loan. So if you can buy this without a loan and still buy the household groceries for next 6 months, go ahead.

[Freespirit27]

Originally Posted by arunabh002

I would be much more comfortable spending that kind of money with a partner than all by myself

While it being a extremely sensible view to take, that my friend is a whole different can to open and surprises spilling out
Having said that all three of my car purchases have been after convincing my better half and it does give you a sense of being more correct in your choice 0:-).
Also my personal view, the freedom of biking as a bachelor, is something you should never give up too soon!

[McLaren Rulez]

Don't assume that the Slavia will last for ten years, even with good maintenance.

Some cars are built well, some not so much. It's too early to say with the newer VAG products.

[revsperminute]

Originally Posted by AJ56

To be honest, if I were you I’d consider pre owned cars as I just don’t find value in the new car market anymore (specially this side of 75L). Since you’re into cars and bikes I’ll assume you know your basics mechanically and have a mechanic who can do a through check for you before you put money down on the used car.

That being said, if you’re keeping it for 10 years+ it makes sense to buy new as you’ll get your moneys worth. Assuming a resale value of 6L, 14L spread over 10 years is 1.4L/year in depreciation, which is not bad at all if the car makes you happy.

148hp and 8.9 secs to 100 is not that great either, it’s not going to put a smile on your face like a true performance 250-300hp car will. Although I understand what one considers satisfactory performance is highly subjective and varies person to person.

There are two approaches you can take: buy the beater car now for 8-10L (again get a lightly used one to lower this cost further), and 5-6 years later buy a proper performance car, I’m certain the M340i’s being sold today will have good deals on them 5 years later in the used market.

Or, buy the Slavia 1.5 today and happily drive it for the next 9-10 years. Personally I’d pick the first one but hey everyone’s preferences vary. Cheers.

A 300hp first car may not be the best idea. My first car was a CVT Honda City and even with that I got into so much trouble. Granted the OP is 9 years older than me but I feel there is a learning curve to everything. A chuckable car with approachable limits will be more fun than a wheel spinning monster which scares the living daylights out of you.

I wish the OP the happiest ownership experience with whatever he goes with.

[GreasyCarb55]

Originally Posted by arunabh002

So I have decided to hold off buying a car right now as there is no 'need' currently and I will buy the one my heart wants after I get married in about a year or so. I would be much more comfortable spending that kind of money with a partner than all by myself

Thanks again for helping me make a decision!
I will definitely post about the Slavia 1.5 regularly once I bring her home

Well you have more self control than I do I'll give you that , if I had 20 lakhs to spend on a car and something like the Slavia 1.5 MT came along all sense of reason would've left my body and I would've booked the car immediately. Kudos for taking a step back and thinking about it rationally.

It's a shame that Maruti Suzuki doesn't sell the S-Cross 1.6 Diesel anymore, if that car was still available it would be my No 1 pick as a Slavia alternative.

[AJ56]

Originally Posted by revsperminute

A 300hp first car may not be the best idea. My first car was a CVT Honda City and even with that I got into so much trouble. Granted the OP is 9 years older than me but I feel there is a learning curve to everything. A chuckable car with approachable limits will be more fun than a wheel spinning monster which scares the living daylights out of you.

I wish the OP the happiest ownership experience with whatever he goes with.

I believe it’s a non issue, due to-

1) He’s already used to a powerful bike, 250-300hp isn’t all that much to be honest.

2) He’s nearly 30, an 18-20 year old is statistically much more likely to get into a crash even with a low power vehicle.

3) Modern day cars have so many electronic restrictions that unless you turn traction control/ESP off (even then it’s never 100% disabled), you can barely spin tyres even if you floor it.

Interesting side point with numbers:

Dominar 400 puts out 40hp and weighs 185kg kerb. That comes to 216hp/ton and does 0-100 in 7.1 secs. In car terms that’s almost as fast as a 280hp accord V6 (6.6 secs)

[revsperminute]

Originally Posted by AJ56

I believe it’s a non issue, due to-

1) He’s already used to a powerful bike, 250-300hp isn’t all that much to be honest.

2) He’s nearly 30, an 18-20 year old is statistically much more likely to get into a crash even with a low power vehicle.

3) Modern day cars have so many electronic restrictions that unless you turn traction control/ESP off (even then it’s never 100% disabled), you can barely spin tyres even if you floor it.

Interesting side point with numbers:

Dominar 400 puts out 40hp and weighs 185kg kerb. That comes to 216hp/ton and does 0-100 in 7.1 secs. In car terms that’s almost as fast as a 280hp accord V6 (6.6 secs)

Sir, I wholeheartedly agree with your points regarding the safety equipment present in new cars. I'll try to explain myself with a practical example.

When I floor the gas on my humble City, I get a smile across my face for a solid 15 seconds and yet I am doing sensible speeds for Indian roads. When I do the same thing in my 330, the car is so fast it's unusable for more than 7-8 seconds at a time. Since the car in question is going to be the OP's first and the only car in his stable, I feel a car which can be enjoyed more in most situations makes more sense.

[buzzy_boy]

I'm 31. Purchased a fun car costing 20 lakhs recently. The following are the principles that guided my purchase

1. The earlier you start investing, the more that you can use compounding to your advantage.
2. You always buy a consumer good (including personal vehicles) with your savings, and not through loans.
3. You can buy a car on loan if and only if you have an equivalent saving earning you 8% annually.
4. You live only once.

So, go ahead with the Slavia if

1. You have 20 lakhs worth of savings (not necessarily liquid cash)
2. You already have a good life and health insurance
3. You don't need a house, or else have started saving for one already
4. You have already started saving for a child's education (even if you don't have a child right now)
5. You have started saving towards retirement
6. Your parents are financially independent, or else you have started saving towards their future expenses
7. Your regular monthly expenditure + car emi <= 25% of your monthly income.

You can go for a loan if the 20 lakhs worth of savings is earning you 8% annually (after tax). Else, buy with cash outright.

If Slavia fits the above, then go for it. The 1.5 L is truly a gem. If not, then kindly consider the Altroz I-Turbo or the I 20 nLine.

PS: The OP has put the purchase on hold. Posting my views for the benefit of anyone else who's in a similar circumstance.

[sukhbirST]

The world is becoming highly unpredictable in the financial angle and therefore as most of the memebers suggested, one must be careful about the earning part. Remember there are mistakes to be made and starting with an affordable car is very important.

[casnov]

The best thing for you is to get a used Octavia 1.8 TSI. It’ll give you the best of both the worlds. You’ll get a car with a beautiful engine at the price of a new Nexon. Negotiate it well and include the price of the failure of the gearbox in the price of the car and you are all set.

[BlackMambaXX]

Originally Posted by sunikkat

But Slavia with that 1.5 TSI is definitely a keeper and you should try to keep it for a longer period.

You never know how these made for india skoda Vw platforms will age. Don’t be so sure until long term reviews come in.