In India, first-time automobile purchasers often struggle to strike a balance between their dreams and their budget, particularly when it comes to expensive cars and low incomes.
Managing Car Purchase Costs
When a Reddit member with a monthly take-home salary of Rs 1.5 lakh revealed intentions to purchase a vehicle for Rs 15 lakh, it sparked conversations regarding loan management, affordability, and monthly costs.
Contributors emphasized the significance of assessing disposable income, accounting for ongoing expenses such as insurance and gasoline, and taking certified pre-owned vehicles into consideration as a viable substitute.
Planning First Car Purchase
Since automobile costs are rising more quickly than disposable earnings, purchasing a first car in India has become more difficult.
Financial preparation is crucial since having a vehicle is a status symbol and a practical need for many young professionals. For first-time buyers, figuring out how much to spend without sacrificing other financial objectives has become a regular problem.
A recent Reddit post highlighted this problem. A private sector worker with a monthly take-home pay of Rs 1.5 lakh revealed his aspirations to purchase his first vehicle, which would cost Rs 15 lakh on the road. He planned to finance the remaining amount with a loan and pay around half as a down payment.
The user inquired as to whether this budget was feasible and whether it would be more sensible to purchase a vehicle for between Rs 10 and Rs 12 lakh. Additionally, he asked for advice on standard guidelines for salary-to-car price ratios.
Balancing Income and Expenses
In the comments, the person made it clear that he is unmarried, that his parents are PSU officers, and that he lives away from home because of his work. He has no additional EMIs and just has rent and utilities as fixed costs. According to the posting, his parents were prepared to help out financially if necessary. This background framed the conversation on striking a balance between goals and realistic financial concerns.
Reddit commenters pointed out that money is not the only factor that determines affordability. Important monthly costs include rent, utilities, food, insurance, and other obligations. With a salary of Rs 2 lakh, one user said how current EMIs and parental assistance restricted his alternatives, forcing him to purchase a used automobile instead, which cost Rs 8.5 lakh. Assessing discretionary income and selecting a loan term that comfortably fits within monthly cash flow were the main topics of discussion.
Used Automobiles
To keep inside your budget and yet purchase a dependable automobile, a few of commentators suggested looking into certified pre-owned cars. Following a professional mechanic‘s check, a user described his experience buying a used automobile that was 2.5 years old and had 36,000 kilometers on the odometer. Due to ethanol-related problems, he also suggested swapping gasoline automobiles with E20-compliant models, which would provide greater long-term dependability.
Extra Fees and Useful Guidelines
Potential purchasers should factor in ongoing expenses like gasoline, insurance, service, and road taxes in addition to the principal price and EMIs. The “one-third rule,” which suggests that car-related costs should ideally not surpass one-third of take-home pay, was also considered during the conversation. This rule is adjustable, however, based on lifestyle, impending commitments like having children or going to school, and current family financial assistance.
Some people emphasized that it is reasonable to purchase a vehicle for ₹15 lakh provided one’s personal finances are secure and one has few responsibilities. The joy of having a favored car would probably exceed the depreciation over a few years. Making a wise choice ultimately came down to striking a balance between pragmatic factors and individual goals.