[harpreetkanwar]

Here are my two cents on it.

Drop the idea of the second house when you have one and instead buy a 3 series or a C class. Sure you don't change your house every 5 years but I doubt if you'd change such a car in 5 years also. And in 5 years, your package would have doubled too. Then sell the Beemer to go in for a newer model.

Can you buy a 5 series ? Yes, why not ? I figure your wife would be earning as well, so it might take time, but I say drop the idea of buying two houses when you've bought one.

If you do buy the second house (since its an investment), realize that by the time you are 45 or 50, the ROI would be great but I doubt you would then want to sell and drive a luxury vehicle cause your life would have passed. *atleast 70% of it.

Therefore the investments would only result in your kids buying a BMW when they are 21 or them fighting for property against each other or you perhaps losing the land over govt. policies.

Who knows whether you'd live tomorrow ? Go ahead.
Priority 1: House
Priority 2: Car

None of us might live long enough to realize the ROI. It'll be our kids I'm sure. Let them figure out a way for themselves too.

[KarthikK]

Originally Posted by RajaTaurus

Owning a BMW or Merc requires some specific things in Indian cities as compared to other countries.
1. You will have to always find a safe, real safe place to park the car before you can leave for a)pay your phone bills, b) go to Coffee Day c) stroll on the beach d) go to a cinema etc.
2. You will have to have a covered compounded car parking at home. You just can't leave it on the road side or even within the compound near the wall!
3. Probably you will need a driver to take care of your car when you go anywhere. Driving pleasure robbed!
4. Of course, have a heavy wallet, in spite all above, to take care of those scratches with keys, broken ORVMs, dented rears etc.
Well, IT guy can do all the above, when he grows to the level of CEO or GM in a company!
It is not only his affordability, there is lot more to it - IMO.
Finally, as many pointed out, IT Joe = Any salaried person.

+1 to all of the above. It is not possible to find a safe place for the car in the city. You have to have another (more common) car to go around in the city and be able to shop/park car without worrying too much.

[Sugeeta]

Originally Posted by Spitfire

I am either in the wrong job or I am not a regular IT Joe. But a way way Below the Poverty Line Regular IT Joe.

Whoever agree with the above please comment. Orelse I am going to lose my sleep tonight.

Spitfire, time to take your boss into confidence and time to pay a visit to the HR folks.

[Speed Pujari]

In my locality yesterday I saw a chauffer driven c class and the guy in back seat (late thirtees) was wearing IBM tag (no it is not a cooked up story) ...
My wife works for GE who provides their GM and above with 5 series/E classes on lease.

Forget that, the third floor of my office has Mercedes R&D center (Pine Valley, EGL) .. You guys can come and check the number of benzes in the basement starting from S class to C class. Seems the managers get one each..
A slight OT, I see a black C class there with a Rs. 50 mockery Sparco mud flaps. This shows how deserving the manager is who drives that car.

[vasoo]

If you have 10+ years experience, live in a 2 bhk rented apartment and have a working spouse (preferable in IT), then you surely can buy a BMW. If most of the IT professionals are buying apartments worth 40 lacs and more, what stops them from buying a 25 lac car? But then some of the things above dont really match. I dont want to be seen owning a BMW, forced to park it on the road side of a run down location and living in a house which has almost the same space as that of my car!

But then, if you own a 3+bhk apartment in a decent place, paying a hefty EMI and your spouse not working, then the max you can go is for an executive sedan, that too after stretching your wallet like a balloon.

[dhanushs]

Umm.. At the risk of sounding stupid.. I don't really get the point. Whats the point in buying a BMW?

Well, if its for the driving dynamics, then there are lot cheaper options, and also, you can go for the pre-owned way. These cars depreciate a lot.

If its for status, then, when your position demands a BMW or Merc, then your income too will or rather should be able to afford it.

[RGK]

Originally Posted by Technocrat

Wow these recent posts make IT look so flashy again. A 10+ years guy in IT drawing 20L plus is still not common, most of the high paying companies are product companies.

In Services based IT where the majority Joe's fall into, the pay these days is comparable to other sectors. Only those folks are drawing high salary who are either in this industry from 15+ years & have ahd a good start or those who have a niche skill set.

Again I am not saying that there arent folks who are drawing high sums, all I am saying is that they are not yet norm i.e. do not fall into Average IT Joe category.

Absolutely spot on Technocrat. Product companies pay more than the service based ones.
I feel the "desire to own a luxury vehicle once in a life time" plays a major role next to the salary part.

[sammycoolster]

Well.. The answer I guess is yes, Right here in India. I was going through carwale used car ads and I see that handsome cars like A6, A4 etc which have been driven 20k kms and less than 3 years old sell for less than or almost half their price.

I saw a neat Audi A4 for around 21L having run only 17k kms and was a 2009 model. I guess anyone who can afford a civic or fortuner etc should be able to easily afford these badges and the cars are also not bad when you consider how recent they are.

[shankar.balan]

the below post is not intended to preach - just sharing some common-sense.
Quite literally anyone who feels like can go and buy one of these big brand vehicles from the used market.
if for example one plans to spend around 13-14 lacs on a new car - then one can find some very good options in this price bracket in the used market. Ive seen some excellently kept C Class Mercs etc recently - available around these prices.
however, the trouble really is that most people buy new cars through bank loans or through their company facilities.
instead, opt out of that, simply save money as much as possible each month while driving around in the current rattletrap - grit your teeth if necessary for a while and you will surprised how much you've saved in a year's time.
this saving will enable you to buy an used example of one of these fancy marques if thats what you want! Be wary of the maintenance costs and spares costs of these big boys though. You may end up regretting your purchase when you see these costs. Also - the current scene in Urban India - especially with parking being so difficult, takes some of the joy out of owning one of these!
it is generally not a good idea to buy an used car via loan - because the interest is killing and hence this thought about saving.

[recshenoy]

waw nice thread.yesterday night me and my cousin discussed this on bus while we returned from long weekend . he advised that "what man, i see many BMWs in my office. how a salaried buy BMW" yeah i made same points most of you guys made here, especially made by technocrat,peanuts offered by service companies good for buying a Hero cycle on EMI. But yea niche skill like telecom, SAP or product companies give nice pay. When husband and wife works with 12L+ package with a house bought at cheaper prices or parental house (say lone son or lone daughter ) can easily think of these luxury car. Also i agree totally totally and completely agree with shankar that a pre-worshiped BMW/MERC/Audi starting range cars are best to buy.

PS: 6 years back when i joined IT, when people asked what after 10 years i used to say "definitely a Merc" but now after working in service industry on 50 year old technology i am cheap at offshore and even considered cheap at onsite. so all i can think is nano in EMI but yeah if i consider my peers in product companies, they can atleast buy some nice cars. so i guess its all depends on how your career shapes up

[DirtyDan]

It is logically possible for everyone reading this thread to buy a BMW. Why? Because your question as stated is so broad that it must be taken first at the logical level.

What is not "logically possible"?

Round squares
married bachelors
sons of barren women

The above are direct contradictions and you will never find these in the world of your experience.

What is logically possible?

Petulant pink pigs pulsating on Pluto.
Parm buys a 4x4 and joins Arka's new 4x4 ashram.
An Indian wins 4 gold medals in running events in the olympics.
DirtyDan has his porch light shot out by a militant faction of Arka's ashram.

The distinction between what is logically possible and what is not was made a few thousand years ago by some clever Indian folks who also wrote the Upanishads in their spare time. They drove BMWs, I am told.

[naveenroy]

Hahahaha, whattay interesting thread!

Well, here is my take on it. It is possible - very much possible. I know a number of people who go "onsite" with the simple intention of making as much money as possible. To the extent that they "jump" different projects onsite, stamp on people below them, lose their integrity, lick up to bosses and do whatever they can to hold on to their seat. Whats more, they even manage to "create" job profiles, when there are none, for their spouses so that they can take them "onsite". And they together, earn close to 2 lakhs in rupees in a month and stay there for atleast 3 years.

Though my short-rant above might be out of topic, I am getting to it

So by this time, they actually end up earning money to be enough to buy a nice house or those who already have a house, buy a Beemer or a Merc etc. But well, what I have seen is that these are the people who do not buy them. Simply because they do not have the mindset to purchase and enjoy something like that. Its all in the head.

Re-reading it, it does look like a rant. But its something that I have observed.

[m8002?]

What i have seen is that salaried people are comfortable spending anywhere from 3-6 months of their salary on a car.

So for an average IT Joe in India, its almost impossible to buy a 30lacs car. Now, is it possible for someone earning 1 cr as salary? Definitely yes. But then, he is not the average IT Joe. The person would be a VP or MD. Even then, only those who love driving would go for a BMW or Merc. Others would be happy with an Accord or Camry.

Most BMWs, Mercs and Audis i have seen usually belong to businessmen.

[radek]

Originally Posted by Spitfire

I am either in the wrong job or I am not a regular IT Joe. But a way way Below the Poverty Line Regular IT Joe.

Whoever agree with the above please comment. Orelse I am going to lose my sleep tonight.

LOL!! Do not loose your sleep over it. Even I can't think of anyone I know who is drawing that kind of salary. Atleast in Indian IT compaies, these are probably Architects in some niche skill or those cut-throat Program manager who never got married and works round the clock.

Whenever I have this kind of feeling of not being in big league, I look back to society I grew in. Here you have made it in life if you have a good house and a car (any). And most of us with 10-12+ experience have already achieved this or even surpassed it. After that, there is no end. You buy a C class and still loose your sleep over it as you are owning a cheapest of Merc compared to those in E and S class.

[artofzen]

According to me , Its not whether having the money to buy a 3 series or having the money to maintain it. What will you do after 3 -5 yrs with a 3 series. For me, a BMW, Audi, Merc is a tricky area.

Once you are in it , then no way can you get out without heartache. Once you have a 3 series then the next car should also be similar or better! That means the EMI's will never stop

Most of the smart people who buy a luxury car usually has the equivalent amount in CASH in the bank (even if they buy the car using a loan) or/and have some asset which is worth ten times the price of the car. That means a guy who owns a 5 series either has 50L in cash/MF/FD or a business/real estate asset worth 5 Crore.

I believe if you buy a luxury car based on the above theory , you will remain Happy

I found this true 90% of the time when you consider cars above 60L.