• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Ratio of car price and net monthly salary

Apply For Lifetime Free IDFC First Credit Card
tachniki

tachniki

TF Ace
VIP Lounge
Few people buy car for passion or collection. For folks like you and many of you, buying car is an important financial decision (obviously along with love for buying new car). If salaried, what was ratio of car on road price and your net montly take home salary? Did you think you were going overbudget then? If yes, what convinced you to make that decision?

My current car, pretty cheap one, was about 4.5 times my monthly salary then.
 
Apply For LTF AU LIT Credit Card
Man, just saw a BMW i7 few days back on road and was so impressed with it. What would you assume the monthly salary for a 2Cr car then?
 
Krishna Kumar said:
Man, (no offense, just for fun!).. but I just saw a Boeing and an Airbus in the sky today and was so impressed with them. I'm thinking what shall we assume now?!!!!
Click to expand...
Lol, you can target to buy a Boeing if that's what you're fascinated with but you don't see a lot of people owning a Boeing. You would see though a lot of Jaguars, BMWs and Porsche on many occasions which should make you think about them.
 
tachniki said:
Few people buy car for passion or collection. For folks like you and many of you, buying car is an important financial decision (obviously along with love for buying new car). If salaried, what was ratio of car on road price and your net montly take home salary? Did you think you were going overbudget then? If yes, what convinced you to make that decision?

My current car, pretty cheap one, was about 4.5 times my monthly salary then.
Click to expand...
Ideally Six months salary range.

But things have changed on. I have friend who is using Tata Punch his salary is above 1 crore per annum and another one who is using Creta with annual salary 20L. So Economy and industry is driven by both of them.

One guy is an investor and another guy is a consumer for that investor. That’s how it goes.
 
BVC said:
Ideally Six months salary range.

But things have changed on. I have friend who is using Tata Punch his salary is above 1 crore per annum and another one who is using Creta with annual salary 20L. So Economy and industry is driven by both of them.

One guy is an investor and another guy is a consumer for that investor. That’s how it goes.
Click to expand...
I guess investor knows how to find best value. 🙂 But it is amazing how Indian car market changed from small car market to various categories of SUVs.
 
tachniki said:
I guess investor knows how to find best value. 🙂 But it is amazing how Indian car market changed from small car market to various categories of SUVs.
Click to expand...
Even though there are big daddy and OG SUVs, Duster started the game but Creta is/was Game Changer followed by Seltos, Tata Safari, Harrier, Mahindra Thar, Scorpio N, XUV700, SkodaVW and other models.
 
Ash8 said:
Lol, you can target to buy a Boeing if that's what you're fascinated with but you don't see a lot of people owning a Boeing. You would see though a lot of Jaguars, BMWs and Porsche on many occasions which should make you think about them.
Click to expand...
Yes I agree with you. But most of them doesn't rely on a regular fixed monthly salary. And these are the people that won't mind these calculations.

OP is talking about the common people and not the super rich ones.
 
Last edited:
Car is a depreciating asset and it is foolishness to spend huge amount. Immediately it steps out of showroom, you will lose 30% value immediately within 1 minute. You should not spend more than 1 month salary on car.

Buying a car on loan is most idiotic thing.
 
robimahanta said:
Cheapest on road price of a car in India I guess will be 5 lacs. So you mean no one should buy a car unless they earn that much in a month. That would definitely make India traffic free. Wonder how much people buying iphones are earning then?
Click to expand...
Show off culture overtake common sense and financial wisdom...70% iphone sold in India are on EMI....Apple knows that it is easy to make Indians fool by creating aspirational value.
 
We bought Alto 800 in 2014. That time it was on loan. Total price of the car was around 3.25 L and I was earning around 35-40k that time.

In 2023, sold it for 2L and bought Swift. Total price was 10L. Remaining 8L fully paid. No loan. In hand net salary was around 1.5L then.
 
sunit123 said:
Show off culture overtake common sense and financial wisdom...
Click to expand...
We live in consumerism. Most people earn as much as they earn only because there are lot of people who want to buy things which are non essential and at time aspirational. Economy will collapse if everyone becomes frugal. And we all may go back to farming. 😀

sunit123 said:
70% iphone sold in India are on EMI....Apple knows that it is easy to make Indians fool by creating aspirational value.
Click to expand...
It is not very different in other countries where phone is sold locked. So, they are paying similar to EMI. I understand that ratio of average salary of folks buying iphone vs iphone cost is way better in US than India. I believe Iphone may have sold much lesser phone in US if payment was not monthly.

Btw, I use cheap android phone because iphone is aukaad ke bahar and doesn't add as much value. But I might be still want to buy a good car because I see value in it for me and my family.

sunit123 said:
Buying a car on loan is most idiotic thing.
Click to expand...
There could be still good reasons to buy car on loan. Some folks have real need for car for travel. And two wheeler is not for everyone. Once upon a time, I would have vouched for two wheeler to save money. But now I find it very unsafe. I will not like ride two wheeler with my kid. Now, I will like to have a strong policy which doesn't allow kids lesser than 12 on two-wheelers.
If someone is managing finance well and need to buy car on loan (or use your home loan), it is perfectly fine.

sunit123 said:
Car is a depreciating asset and it is foolishness to spend huge amount.
Click to expand...
If one has money, why not. If someone earns 4 crore per day as CEO, they should buy costliest car in world. And for Ambanis, please buy as much as you can and spend all your wealth in weddings. This is perfect way to redistribute wealth.
 
You must log in or register to reply here.
Back
Top