Wednesday, January 22, 2014

Buying a Car

Buying a car is an emotional decision for many of us. The reasons could be plenty. Mentioned below are the most commonly heard around:

  • Travel to airport once a month and cannot depend on taxi. So bought the car. However, what he forgot was he cannot drive to airport, so comes the driver. Driver cannot be kept for one day per month, so he is out. Relatives cannot come every now and then. So the car sits quietly in parking lot and this guy is again in taxi.
  • One guy went on to buy a car because he was fed up of train rush. Then he got fed up of traffic at peak hours and so he changed his office timings to avoid traffic. However, he could have been just fine in train with the change in office timings
  • This guy had to stand in bus queue for an hour. Coming Saturday he bought a car. Nano? Nah, its Skoda Rapid. Awesome reason
  • “I am a manger, I have to go by car”... another awesome reason. No comments
  • Increment of 5k per month. So now the car is affordable at extra disposable 5k EMI
  • Inherited 10 lakhs from grandfather, so bought Polo. Cool man
  • Everybody in my complex has a car, I have to buy it
  • HR informed me that I am entitled to a car with 20k EMI. Petrol to be paid by employee. Got excited and bought latest SUV. Forgot to check average. Poor fellow
  • Cannot walk with vegetables, fruits from market to home. Awesome reason by person staying in Mumbai

According to me, car is justified only if we satisfy or know below conditions:

  • Planning to use that car at least for next 8-10 years
  • We know how to drive or driver salary is paid by company
  • Estimated rate of increase in petrol price is accounted and budgeted
  • Max 30% loan on car
  • Maintenance and servicing of car costs money. This is known prior to buying car
  • Car insurance is costly. Yes, I know this.
  • Parking in city costs 30 per 4 hours. Yes, i know this.
  • Relatives and friends will borrow occasionally.

There could be many reasons to buy and not to buy a car. Analyse your case, present it to yourself and then justify the reasons to yourself. If you know, you can pull it off, great. If not, post pone the buying or buy a smaller car.


  1. •Planning to use that car at least for next 8-10 years
    - Viren here want to correct ....i say planning to use car atlist 2 hours daily for atlist 4 years , moreover people who stays near station and those are retired also have creaze to keep themself updated with current era so they join driving coaching and then use to buy a car, which is of useful for them atlist once or twice in day time. But if they aslo use to prefer to use train as Station is nearby.

  2. Sorry, did not get you Kaustubh.....