[sunikkat]

Originally Posted by BlackMambaXX

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

Personal experience, have an Octavia 2016 (70k kms done) model which has been superbly reliable. The interiors are still like a new car, not a single rattle and no breakdown. And similarly in my family circle there are Vento and Polo which are more than 10 years old and 1 lakh+ kms but still solid. Though the India made VAG might have had the cost cutting, I strongly feel they are mechanically sorted (other than the niggles) and they will be a keeper for sure. Plus the power output is future proof too, best in the segment. So with my personal experiences, I have nothing to doubt them.
Comparatively my other previous cars did not age well.

[ashokabs]

I bring the voice of reason maybe because I am older and have seen many moons.

These are uncertain times. Inflation is going to pull our legs from under us. What looks like an adequate salary now will look subsistence in five or six years. With 10% inflation your salary will halve in 7 years. Even if you get raises it might remain stagnant. Yes think of the scenario 5 years from now before you plonk large bucks for the pleasure or roaring down the road in 150 bhp!

One perhaps has to also consider the technology landscape. ICE is rapidly getting ousted by some form of EV based on battery or H2 over the next 5 years. Global warming will cause a huge upheaval and will transform the automobile landscape. You need to take this into account. My humble suggestion is to buy a good second hand car that is a little above the Slavia if you are bent on ICE.

[TheHelix0202]

Anecdotal tip - someone in my apartment owned (and still do own) a silver Octavia diesel of 2004 (?) vintage. It's been their daily driver for almost 20 years. Well maintained. Just recently, they got themselves a brand new Superb in the same shade. Well deserved upgrade, I'd say. The amount of money they must've saved when everyone else had gone through two to five iterations of cars of lesser or same segments must be huge. Delayed gratification.

[BlackMambaXX]

You can’t compare the octavia to the slavia/kushaq twins. There is significant cost cutting done on these Made for India cars and only time will tell how well they age. I especially didn’t like the interior quality on kushaq compared to the other VAG cars. I haven’t seen the slavia in flesh till now.

[Raghu M]

As a guy in his mid 30s, I will give you my perspective. Given your age, you will feel like owning something that you love. Nothing wrong in it. Since I do not have a fair idea of your monthly income, I would share my opinion (not a suggestion or recommendation in any way). If I were you, I would not buy the Slavia. Simple reason, you are 29, just around the corner of your family adding a new member. You will need funds for various reasons.

1. Just imagine, you set your eyes on an amazing investment (a plot, gold etc.), you will simply be left with fewer funds that you had before buying the Slavia

2. Your better half thinks it's time to move/own a house/property. You will fall short of funds and will have to go the personal loan route just to manage that down payment. It will be very sad to see something like that go away just in case you are not ready with the funds

You need funds urgently for something that the family loves (a nice international vacation etc.). You will simply postpone/cancel it due to lack/insufficient funds

Simple, just go for a car that is fun to drive in the 10 - 14 lakhs segment (there are quite a few options). Enjoy the car for at least 7 to 8 years. You will be financially better off while you turn 36 or 38. That is the time when you can buy a car of your choice/love with ease and it won't burn a hole in your pocket. I bought my first big car after turning 35 and trust me, it's a more content feeling. I bought 3 houses and a few plots as investments as I did not indulge in stuff which I thought could wait for a few years. Look at investments during these years and become financially sound. Of course, there will be loans but you will have appreciating assets. Better cars keep getting launched every year, you have all the time in the world.

[The Alchemist]

Ah, the perennial head vs heart dilemma!

Be aware that there are no right answers here. There are pros and cons to whichever path you choose and it would come down to a matter of priorities.

Financially, buying a high-priced depreciating asset is never a wise decision. But if that were to be religiously followed, many of us would still be driving much smaller cars. On the other hand, we live to LIVE! Philosophically, do the things you want to do at the earliest affordable opportunity. If you postpone owning a nice car until 40 years of age, you may not be able to enjoy it the same way you would at 30.

From your post, I'm going to assume that you are financially stable. As in you see yourself earning and growing continuously for the next many years to come. If that's the case, I would say go ahead and buy what your heart wants. After all, we only live once!

A few points to consider.

• A lot of people advise not to buy a car on loan. That is true when you put the numbers on an excel sheet. But what an excel sheet doesn't capture are opportunities and experiences. If you are good at what you are doing (work-wise) and you see growth in that area, I say go ahead and buy as long as EMI takes only a small percentage of your income. You can start your experience 5 years early and that is priceless!

• If you are in a shaky business or not confident in your career growth, or if you see any risks with respect to job security, buy from a lower segment than what you can afford today.

• Buying what you love ensures that you can use your car longer, and it can work out cheaper than owning 2 smaller cars in the same time period

• If you've just started earning or if you don't have much savings, ensure that sum of ALL EMIs is less than 30% of your net monthly income. This is to ensure room for future 'goal-based investments' (Read about this if you are not familiar with the term)

All the very best in your decision making jorney!

[naadopaasaka]

I know the OP has already reached his decision, but here's my five paisa's worth nevertheless.

I suppose one way to frame the question is: What percentage of a 29/30-year-old’s annual income is it prudent to spend on a primary car? (Heads up: I won't answer this question directly. I can't.) We could try working backwards from income to car-choice, rather than forwards from the allure of the car to finding the money.

The parameters would be: (a) whether you are self-employed or in employment; (b) whether you’re living with your parents and/ or married, whether your immediate family is earning or retired, and the extent of your financial contribution to the household; (c) the nature of your other expenditure – compelling needs like medical expenditure, and discretionary spends; and (d) wiser/ more attractive investment avenues. From there, you can find out how much is the absolute impenetrable minimum percentage of your income that you should save, and then work backwards to your EMI. You absolutely should treat the car expenditure as a revenue outflow and not as an investment. So it ranks low in the pecking order of spending.

This is a question which troubles me too. I tend to be financially conservative, and, at 30, still haven’t felt compelled to buy my first motor vehicle. The 1.5 TSI engine has me seduced too, albeit not in the Slavia’s clothing. But we don’t need a second car at home, and our reliable workhorse (a 1.3L DDIS S-Cross which turned five years old last month) is in ship shape. I will thus stubbornly refuse to spend money on a new car.

It is possible to take an entirely spiritual/ conservative view of things and say that recreation must not impose such a substantial financial burden. (Anything you pay above the Nexon’s price, you pay mostly for the joy.) But that might not be a popular view on this forum. Then there is the worldly conservative view (already suggested above) to find a middle path with a used car. Then the adventurous view which is to go with your heart. And finally, to compromise with the Nexon.

The decision might in the end be subjective and entirely personal, but you can keep adding parameters like this to restrict the subjectivity or the mind-heart conflict to the narrowest possible scope. Objective parameters permit wiser decisions, but are annoying too.

[deepak_bajaj]

Here are my two cents and I hope they don't add to your confusion.

If you really and I mean really love the car, go for it. Just double check that it puts a smile on your face every time you drive it. With respect to financials, I have the following view point:
1. Not all purchases in your life should be VFM if you can afford it. We slog ourselves to enjoy the materialistic comforts as per our capacity.

2. Assuming that you invest in stocks or mutual funds, apply for maximum loan for the car. Keep your money invested. Car loan interest rates are around 7.3% while average returns for stocks / mutual funds are 15% on conservative side. So make only the smallest down payment as required.

3. Assuming you are salaried and in a stable job, your income will grow yearly. You should factor in that. If you are a businessman, then you can easily calculate your increased income from your current performance / past results. This will add the liquidity every year.

4. Assuming your income is increased by 10% every year, you should be home and dry after the first year itself. You can do the math.

5. If you can keep your car for long (8-10 years), which I have doubt because of Skoda, this will even workout cheaper than car upgrade after 4-5 years.

6. New car will have more peace of mind than used one unless you are an authority on the subject and can hunt issues on your own. You should also have that much spare time and energy, which I don't have.

7. With regards to feeling of wow, that is very subjective. You should test drive to your heart's content and then decide if you get this feeling. Is it any better than Nexon.

8. I would suggest you against Tata. The horror stories of their inadequate service centers are many (no offence to any Tata owner). You would like to stick with someone who can service your car promptly.

9. All machines are tools but every tool belongs to a different category. A tool makes your job easy and enjoyable. Like a camera. A phone cannot click a photo equivalent to a 1" sensor camera which in turn cannot complete with DSLR. Of course, you must know how to use your tool. So a good tool can make your life more comfortable.

Hope this helps.

[Chugh_H]

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. 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.

Hoping you did consider the residual value payment at end of lease period, and the tax on it. When I did same calculations at my end recently for a 10L car, I was able to deduce that I'll end up paying almost 9.5+ lac, after considering a decent running and all the savings on fuel bills, maintenance and service. I don't know how is it at your company, but a lease also means you'd need a bigger incentive to move jobs before lease period ends, or you end up losing money, which must be significant for a 20L car that you are considering.

[arunabh002]

Originally Posted by BaCkSeAtDrIVeR

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.

Well said Sir!

Originally Posted by Freespirit27

Also my personal view, the freedom of biking as a bachelor, is something you should never give up too soon!

Exactly, I plan to enjoy the freedom of not being married for a while and go on a lot of bike rides!

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)

Owning a 300hp car will come with its own challenges and expenses which I don't think I am ready to handle at this time. I want a reliable family car which would be fun to overtake trucks with on highway.

Originally Posted by buzzy_boy

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

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.

These are great points!, I am almost there. Whenever I buy a car I'll make sure all of these are ticked. Thanks!
Which car did you buy? Can you share your experience? (or a link if you have already shared in the forum)

Originally Posted by 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.

I would love to own that car but since it would already be quite old, will I be able to keep it for 8-10 years? I am really scared of the DSG woes and personally enjoy manuals more. If I have to get a new car in between, I'll be spending more than what I would if I buy the Slavia.
Also I have a bias towards new cars (atleast the first one) where I get to know the car from day one and nurture it like a baby with run-in and everything.

Originally Posted by Raghu M

Simple, just go for a car that is fun to drive in the 10 - 14 lakhs segment (there are quite a few options). Enjoy the car for at least 7 to 8 years. You will be financially better off while you turn 36 or 38. That is the time when you can buy a car of your choice/love with ease and it won't burn a hole in your pocket. I bought my first big car after turning 35 and trust me, it's a more content feeling. I bought 3 houses and a few plots as investments as I did not indulge in stuff which I thought could wait for a few years. Look at investments during these years and become financially sound. Of course, there will be loans but you will have appreciating assets. Better cars keep getting launched every year, you have all the time in the world.

Can you share which was your first car and which is the good one?
I have considered this point a lot. Buying something like a Nexon (the ideal price, below this is a compromise in quality and safety and above this is diminishing returns) for 12-13L would effectively cost me ~11L with company's CLV policy. And 20L slavia will effectively cost me ~16.5L.
Now with the extra 5-6L I spend today, I get a more well built product, more features, more reliability (than Tata atleast), a much better engine and most importantly a lot more fun. Although there is no calculator to find out if all this is worth 5-6L.

Originally Posted by deepak_bajaj

5. If you can keep your car for long (8-10 years), which I have doubt because of Skoda

I have seen Altos and 800s and Omnis last for 10+ years in my family. Why can't we expect that from Skoda, atleast with the fundamentals? It is true that today's cars are much more complex and we can't expect Maruti 800 level of hassle free maintenance even from a Superb.
But I am ready to handle complex tech components failing as long as it is driving fine.

Originally Posted by The Alchemist

From your post, I'm going to assume that you are financially stable. As in you see yourself earning and growing continuously for the next many years to come.

That is true.

Originally Posted by Chugh_H

Hoping you did consider the residual value payment at end of lease period, and the tax on it. When I did same calculations at my end recently for a 10L car, I was able to deduce that I'll end up paying almost 9.5+ lac, after considering a decent running and all the savings on fuel bills, maintenance and service. I don't know how is it at your company, but a lease also means you'd need a bigger incentive to move jobs before lease period ends, or you end up losing money, which must be significant for a 20L car that you are considering.

I did check that. However I am not including the fuel and maintenance savings when calculating the effective cost of the car.

[LONG_TOURER]

I would say go for it !! I have been in your shoes in 2020 when COVID was at it peak where it was uncertain whether we would make it out of this pandemic or not.My in hand Income comes out to be around 15L p.a and i took the plunge and bought a Hyundai tucson costing 30L. Yeah, many financial experts in my family and friend circle criticised me of such decision. But i listened to my heart over head and i have no regrets so far.

P.S : I bought the car with 50% finance and had no liability of Home EMI/ Education loan in the past. I have medical insurance to take care of myself in case of emergency.

[prateekm]

I'm in a similar(?) boat. I'm 28 and haven't had a car since '17 since we sold our Cruze. Hated driving in Mumbai and also my work at that point of time meant I would find myself in Bangalore every few days. Totally depended on Uber and it worked really well for me.

Since '21, I've been in Indiranagar working at a startup and live 200m away from the office. However, my partner recently relocated and her office is in HSR. We're now looking to move at some location that's equidistant from our office. The problem with Bangalore is that cabs/rickshaws just stop functioning the moment in rains and that brings in the necessity of owning a car. I'm totally okay picking up a used car that's 2-3 years old and has clocked less than 30k.

The necessities:

• Fun to drive. The acceleration is important. I don't drive fast, almost never above 100-110.
• Automatic - don't want to compromise on the gearbox. I'm a big fan of the DSG and I'm totally willing to park a couple of lacs for the maintenance and out of warranty replacement.
• Safe. No Marutis for me.
• Prefer a hatchback. It's just the two of us, the rear seat won't be used 99% of the time. Also easier to drive in Bangalore.
• Mileage doesn't really matter since I was anyway okay paying a premium for Ola/Uber. Anything more than 8-9 is okay.

Other things:

• I don't really care about the touchscreen gimmicks, a digital console and all that jazz.
• A sunroof would be nice but won't fret about it.

Why am I confused?
If you read the above requirements, you'd think that a used Polo TSI is something that fits my requirements to a T. The problem is that 2 year old Polos are being listed for 11 lacs in Bangalore which I feel is a ridiculous ask. Financially, I am in a position to stretch my budget and pick up the Slavia 1.5 DSG or perhaps even the Octavia but being in a startup which is just starting to grow, I'd rather sleep well at night with the money in my bank. What would you do in this case?

[raiuday]

Originally Posted by arunabh002

So now the dilemma begins:
Should I buy the car that has stole my heart for ₹20 lakhs or go with something which costs half and can deliver 80% of what the Slavia can in terms of specs and features, something like Nexon or Altros or even Tiago (yes, a lot of Tata because I am a firm believer in NCAP Ratings).

Hey arunabh002,

I will provide my perspective as I had my first car an year and half ago which was the Ford EcoSport AT. First and foremost, the Skoda/ VW 1.5 is a brilliant motor but would put the smile on you only when you use it to the fullest and when you do so the mileage though seems like a negligible factor at this moment, would actually make you drive slower. Also, at this stage in life you might be closer to having a new born in the family and that could also bring down the swift accelerations and effectively reduce your speeds as well.

So, if you're not going to utilize the car's potential to the fullest eventually with all these factors, going ahead it might not make a perfect sense to you either. However, a diesel hot hatch like a used Figo Diesel with less kms on the odo could be a perfect buy to keep for the next 6-7 years and probably then you could actually think of a significant upgrade. This I say from my experience of not being able to utilize my Ecosport to the fullest due to concerns like going out with family most of the time, fuel economy concerns with such accelerations and speeds etc., I do ride a CBR250 and do not ride it slow by any means (safely though) and I only regret not being able to drive my car the way I ride my bike.

However, it doesn't need to make sense if you love it, does it?

[arunabh002]

Originally Posted by prateekm

Why am I confused?
If you read the above requirements, you'd think that a used Polo TSI is something that fits my requirements to a T. The problem is that 2 year old Polos are being listed for 11 lacs in Bangalore which I feel is a ridiculous ask. Financially, I am in a position to stretch my budget and pick up the Slavia 1.5 DSG or perhaps even the Octavia but being in a startup which is just starting to grow, I'd rather sleep well at night with the money in my bank. What would you do in this case?

You are right about sleeping well at night. Peace of mind is something I keep on highest priority.
In 10-15L budget, There are 2 camps: If safety is more important to you, you can go for Altroz Turbo or Nexon. If the engine and gearbox are more important to you then there is the i20 N-Line or the Sonet DCT. Now since Polo and EcoSport are no more, I think this is the most 'fun to drive' quotient one can have in this budget.
I haven't explored how things are in the used market though.

Originally Posted by raiuday

So, if you're not going to utilize the car's potential to the fullest eventually with all these factors, going ahead it might not make a perfect sense to you either. However, a diesel hot hatch like a used Figo Diesel with less kms on the odo could be a perfect buy to keep for the next 6-7 years and probably then you could actually think of a significant upgrade. This I say from my experience of not being able to utilize my Ecosport to the fullest due to concerns like going out with family most of the time, fuel economy concerns with such accelerations and speeds etc., I do ride a CBR250 and do not ride it slow by any means (safely though) and I only regret not being able to drive my car the way I ride my bike.

However, it doesn't need to make sense if you love it, does it?

I have accepted the fact that the kind of fun you have on your bike will rarely be matched by your car no matter how fun to drive it is. But on those rare occasions (overtakes and manoeuvering between trucks) it surely puts a smile on your face
Personally, I would want my car to have sufficient punch for those rare moments.

[YK85]

Originally Posted by arunabh002

First of all I would like to express my happiness of getting approved as a Team-BHP member! I discovered this forum recently and it is so good to see that ...,.,...
I would love to hear what our BHPians would suggest I should do or think about this.

You are absolutely right when you say what is the point of earning money if you can't use it to buy things that make you happy.

You should go for the Slavia. It's a good decision.
Plus you get the benefits of German engineering. Everything in the car will function as it is supposed to. It will beat all the other cars you listed as possible buys in every parameter (excluding the Octavia, of course )