[invidious]

I get over the guilt by having more cars which are cheaper. If parking spots aren't an issue, it seems like a more logical recourse to me. You can switch cars every 5 years. For the price of a fortuner I guess you can have a Nexon EV, a Seltos, a Baleno and a Hyundai Xcent and still have change left over. Also means in your stable you a Sedan, an SUV, a hatchback and an EV. Food for thought.

[Hells Bells]

Originally Posted by hrishig

If your new car price is less than 5% of your total savings ( Presuming no pending loans/ liabilities ) and you are not retiring in the next 10 years simply go ahead. Fortuner may spend 10 years or more with you. At the end of those 10 years, the current Fortuner price might look like peanuts to you.

If you go by that logic of 5%, one wouldn't buy even a Honda City till they have upwards of 2 Cr net savings. I do not believe that kind of approach is tenable. You buy a car looking at all sorts of factors which might be variable (and not absolute) for you. I carried a partial guilt when I bought my vRS till I sat down with a Financial planner who showed me that against my defined goals, I am comfortably placed even after the purchase. And no, I didn't have 6 Cr as savings when I had that conversation with the planner.

[poloman]

From the responses it looks like lot of people in my age group have been there and did what they felt right.

@ranjitnair77 has captured my predicament beautifully. May be he is also 77 born like me.

I have mentioned in my opening few great things which could be done for this kind of money. Let me elaborate a bit what I had in mind.

Few years back, I had a US vacation to Disney Land and East coast with my then 10 year old daughter. That was one of the best experiences we had in our lives. It costed just over 8L. So you could do at least 6 foreign trips with the money you spent on a 50L SUV. Was planning a Europe trip during 2020-2021 which could not materialize due to COVID.

Daughter's studies abroad with zero loans. 60-70L will be pretty much what you need for a Masters degree in US. Don't want to burden my daughter with any loans in the start of her career.

Decent charitable activities. Give something back significantly to the society.

Go for zero loan and build a bigger house which I am planning 2 years down the line. We already have an apartment currently.

I don't plan to retire early and plan to work so long the industry needs me. But make sure that you retire with a huge corpus for worry free sunset years.

[JKBKS]

Originally Posted by poloman

I think, there is nothing great here. Any one who has been working in IT sector for around 25 years with out break should be able to manage this. But most will choose it safe. That is why in India mostly luxury cars ~>50L are reserved for business class. There may be exceptions. This is what I see around my circle.

There is n't a single German marque in my apartment of around 160 families. In my company (one of the largest semicon company) the same can be counted on your fingers. The cars exponentially decrease after 20L bracket.

I have been in this frame of mind for last many years too and am still sticking to a 12 year old Scorpio as a result. I kept postponing buying a new SUV, even though affordability was not that big of a concern, always thinking that that money could be used somewhere else in future. Finally one day after many years of wondering and after lot of encouragement, cajoling, insulting etc. by a dear friend I booked an XUV700 AT, without even test driving it. His basic point was the same as mentioned by many people here that if not now then when!! And he himself is getting a Hilux too because its what he has always wanted.

But I am still stuck this middle class guilt, even though both of us could buy a Fortuner any day, if XUV700 is needed since Scorpio is working fine. So my point is one will always keep wondering until one pulls the trigger and there is never a good time to do it

Coming to your observation of mostly businessman buying expensive cars, one of the reasons is they claim depreciation and complete maintenance/expenses are put on pre-tax company revenues whereas for salaried people like us, all expenses are post-tax so we have to think twice before buying depreciating assets like expensive cars

[Exhuberance]

I had and still have the same dilemma.

The last time I almost pulled the trigger on a Karoq in 2020 - the reasoning then was that I wanted to do an India tour with the family while WFH from different locations. Eventually we decided to take a vacation separately and not mix the two - hence removing the need then for a SUV.

Cut to present, I want (not need) and can afford the Tiguan/ Kodiaq. In all probability my SUV will lie idle for a long time, like my Rapid. Hence, in all good conscience - can't bring myself to purchase a new vehicle, that too a petrol guzzler, without a long term justification - and that's a heart decision not a head one as I know I may not feel good owning one without having a good use for it.

Frankly, the only one who can answer the question is OP himself. If you'll feel great, day after day, owning a big burly SUV and there are memories you want to make with that SUV - sure go ahead. Else, take a pause, reassess.

[PaddleShifter]

Originally Posted by invidious

I get over the guilt by having more cars which are cheaper. If parking spots aren't an issue, it seems like a more logical recourse to me. You can switch cars every 5 years. For the price of a fortuner I guess you can have a Nexon EV, a Seltos, a Baleno and a Hyundai Xcent and still have change left over. Also means in your stable you a Sedan, an SUV, a hatchback and an EV. Food for thought.

Nice idea but what about maintaining 5 cars vs one car?
My friend had a 2009 Fortuner and always quoted unrealistically low service cost (lower than my Punto).

Service and repair of 4-5 cars, along with insurance etc. is going to be significantly high as well.

[rhsakarp]

Like the good folks at Nike say "Just do it !"

On a more serious note, I've booked a Sonet to not feel guilty, keep the people around me happy...but each time I see a Fortuner drive by...sigh !!!

Now thinking of booking one too, this thread could not have come at a better time

[invidious]

Originally Posted by PaddleShifter

Nice idea but what about maintaining 5 cars vs one car?
My friend had a 2009 Fortuner and always quoted unrealistically low service cost (lower than my Punto).

Service and repair of 4-5 cars, along with insurance etc. is going to be significantly high as well.

Not owned a Tata, so can't comment. But insurance and maintaining Suzukis, Hyundais and Hondas is very reasonable. Your running is also divided so maintenance costs are pretty low.

[Arjun Bharadwaj]

I feel like a peasant after reading "middle class" and buying a Fortuner cash down in the same sentence

On a serious note, I have seen Fortuners selling for almost showroom price after 3 or 4 years also. So a hit of 1 or 2 lakhs a year for using a Fotruner should be totally justifiable from a financial perspective. And the confidence that the occupants are always safe and in a reliable vehicle is priceless.

MOD NOTE : Please visit the posting etiquette thread for better post composition.
Thanks.

[streetfighter]

Similar thoughts crossed my mind before I made my recent purchase, the Citroen C5 Aircross. But end of the day, it was a heart over decision. What tilted the decision were...

1. I'm getting old, not sure how much of self drive is left before a paid-driver takes over. Hence went for a good fun-to-drive comfortable car
2. I love driving and the family (2 kids and a dog) loves long drives too. A decent sized vehicle with decent safety was absolutely essential
3. Road infrastructure is improving in the country, so I anticipate lot more road-trips in the coming years
4. We work hard for ourselves and our family, sometimes it is ok to stretch and spend (like staying in a 5-star property or taking an international holiday)
5. The "zindagi na milegi dobara" thought was reiterated multiple times. The covid time also contributed to the uncertainty about life, and I felt it is good to live and enjoy the present too (in addition to thinking about future)

[Transmission]

Originally Posted by poloman

...
The only car which has made an impression on me in the current lots due to multiple reasons is Toyota Fortuner. I know the car is over priced. Still I love the car. Resources are not a problem for me and I can even make an all cash purchase.
Now come, my dilemma. I will call this the 'great Indian middle class guilt or remorse' when one spent huge amounts on depreciating assets.
...
Sadly no other current car excites me or I don't consider those upgrades worthy.

IMHO, the value of money is the amount of life you exchange for it.
If you make 50L in about 8 months - say with income and investment appreciation together - then the Fortuner is worth about 8 months of your life. Assuming it lasts 12+ years like your Polo - then thats 8 months of your life in 12 years.

~5% of your life.

If you think buying the Fortuner will make you happy (forgetting the price for a moment) then would you spend 5% of your life to make you potentially happier for the next 12 odd years?

I have grown up from poverty myself - so I totally understand what youre feeling (I think). I mean, I still havent bought a car (but considering one now) - used to use the BMTC service and office transport all these years. It feels obscene/irresponsible to spend these amounts. I still struggle with it occasionally. The first year where I had high-highish incomes I fell into a sort of void. Like now that I had some cash, it was my responsibility to solve the world's problems. It isnt. It never was. Money is just a tool - a tool not much unlike a spanner or a screwdriver - a tool to provide some comfort and happiness for you and people you care about (while trying to not hurt others).

The emissions from your Fortuner are not alone going to cause armageddon (I say that as someone that greatly cares about global warming and sustainability). Use the metro, use public transport when you can. Maybe donate to causes you care about - including green initiatives. Plant trees if you own some bit of earth somewhere.
Sure, you can try to save the world - it sure is an honourable effort - but why not start with saving yourself from remorse first?

Expensive is relative. For a financially poor 5 year old, a Munch is cheap and a Mars bar is expensive. But not for adults like you or me.

Also, if you're going to buy some car then the real cost that you should be considering isnt the full cost of the Fortuner - its the difference in cost between the Fortuner and that cheaper car on your list.
If the 50L Fortuner is under a year of your income (I'm spitballing an estimate based on your comments elsewhere in this thread) - then is it really all that expensive for you?

Some of that might come across as melodramatic, so pardon my take. This is a topic that I have personally had to wrestle with so I thought I'd share my thoughts as raw as they are. Take care!

[ranjitnair77]

Originally Posted by poloman

@ranjitnair77 has captured my predicament beautifully. May be he is also 77 born like me.

Yes, 77 born. Now that's a nice coincidence isn't it
To me, all your alternative plans sound so much better than getting the car.

[pratika]

Nice thread. @poloman I think many people on this forum identify with your predicament. As a coincidence, I also work for a large semi-conductor company and felt the itch (multiple times). Bought (and sold) the Superb few years ago and have now booked the M340i. The hope is to have fun driving the superb machine that is likely to go extinct this decade. And build memories with the family on nice road trips. I'm not ready for an EV yet for out of city drives.

My reasoning to take this step was this is likely the last decade to enjoy nice gasoline powered cars. If I didnt do this now, there is a good chance I'll regret it 10 yrs down.

As someone aptly put in this thread above, we're one heartbeat away from nothingness.

Good luck with your purchase and hope you enjoy every bit of owning your dream machine.

[cpabhijit]

Originally Posted by poloman

The only car which has made an impression on me in the current lots due to multiple reasons is Toyota Fortuner. I know the car is over priced. Still I love the car. Resources are not a problem for me and I can even make an all cash purchase.

Just go get that car. If we look at the emissions angle, then why only Fortuner, we should all immediately stop buying all ICE. And who says EVs don't have their share of environmental concerns? The kind of illegal mining and slavery that exists just to make those batteries is unbelievable. Leave aside the problem of disposing those batteries. We all thought paper was harmful because we cut down trees and adopted everything digital. And now, the heat generated by server farms is many times over all the harm that paper may have caused.

If you keep that engine running in the parking when you sleep at night, then that is an environmental concern.

And why middle class guilt? You have worked hard and gotten to where you are. This is one of the many things that'll keep you happy and motivated to do all the other good things that you can! Without this or whatever makes you tick, why should you continue working hard?

Originally Posted by hrishig

If your new car price is less than 5% of your total savings ( Presuming no pending loans/ liabilities ) and you are not retiring in the next 10 years simply go ahead.

Means, to buy a 30L car, I should have a saving of 6 Cr? Whyever so?!

[hoodibaba_saggi]

Originally Posted by poloman

I know the car is over priced. Still I love the car. Resources are not a problem for me and I can even make an all cash purchase.

Now come, my dilemma. I will call this the 'great Indian middle class guilt or remorse' when one spent huge amounts on depreciating assets.

I am sure many of us who have come from modest back grounds but risen well only due to our parents focus on
education will feel this. 45-50L is a huge amount. So, am I doing the right thing by spending such a huge amount on a car which
may be higher than what you spend on your child education. You can do so many great things with that kind of money.

I can related to your dilemma. I was also in similar though process. Finally bought Hector Plus Sharp CVT on Loan (I could have bought on cash, but I believe 25 Lakhs is significant amount).

So I will suggest you this -
Go with your heart and buy your dream car but don't hand over your 50 lakh to Toyota. Interest rates are almost bottomed out so get as much loan as you can.
Invest your 50 lakh in stock market and with a 1% per month return you could cover almost 70% of your EMI.
And I would suggest, don't pick stocks yourself, use professional help. I am not taking about MF but PMS/AIF which is approved by SEBI. (Minimum investment is 50 Lakh for PMS & 1Cr for AIF)
Best case scenario - In 5-6 years you can make as much money from your 50L lakh capital that your EMI is covered for FREE !
But I would say keep control of your money.