Should I buy a luxury car?
Everyone in my family has always been very frugal. Honestly, the most unnecessary purchases I’ve made so far are a bicycle worth around 17k and a Nikon 5200 camera, both of which are rarely used. My wife never forgets to bring these up during our arguments 😊
I’m 35 years old, and my current net worth is around ₹5 Cr, including a house worth ₹2 Cr (excluding any parental property).
I have no loans. My parents were strongly against debt, and over time I’ve come to agree with that mindset.
That said, somewhere deep down, I do have the urge to splurge a bit and buy something like a Tesla Model Y or a BMW 3 Series. However, my actual usage is quite low. I drive maybe once or twice a week, with occasional long trips of 500 to 1000 km.
A part of me feels I’m not yet “rich enough” to justify a ₹60–70 lakh car. But I also don’t have a clear benchmark for when such a purchase becomes reasonable.
For context, I have a strong income (CTC above ₹1.5 Cr), but it comes with high uncertainty since I work in a high risk company where things can change quickly.
Currently I own swift dzire.
Given all this, do you think it makes financial sense for me to buy a ₹60–70 lakh car?
Don't think this is a math question, you have the money. I'm sure you can calculate how much savings you need, and personal finance 101 is sorted - emergency fund, insurance etc. Hygiene checks.
Now, the real questions for you to answer:
- How much do you really enjoy cars? Is this something you've been looking forward to for years, or is it a recent temptation? If you're not an enthusiast, you won't just turn into one because you have the new car. The true car enthusiasts have a strong driving urge with their swift dzire too. If you are one - easy decision - go for it.
If you can't answer that question, Ignore the urge for a few months, and take a rental luxury car for a road trip and see how you feel after?
Why: Purchases can feel like BAU after a while - you need a reason other than "expensive item makes me feel nice". Else you'll just end up feeling guilty every 2-3 months that your 70 lakh car is gathering dust in the parking lot.
- Are you confident it's just going to be the car, or are there more big ticket items you have your eye on? Is it going to need a full lifestyle upgrade to accommodate (moving to a more premium house etc etc)?
Not all expensive things are equal - maybe a luxury vacation every year gives you more joy (or a highly paid personal trainer + chef etc etc). Not saying you can't have more than one thing, but if you are able to segregate the mere temptations from the genuinely strong desires, decisions will be clearer.
Obviously, there are some limits that are prescribed: the typical advice I've seen is 30-50% of annual income, or I've also seen 5% of net worth.
But it brings me back to the point of what you really want. I wouldn't even spend 5% of net worth on this, but I know people who would spend 10-15% and still save aggressively on everything else - because they'l love cars and are ok with that trade-off.
Where do you fall? Will you ensure your monthly SIPs (or whatever other savings you do) remain untouched after car purchase, even if you have to live a little more frugally? And be happy doing it?
Thanks for the advice.
I don’t see any financial challenge buying or maintaining it but at the same time I am not car enthusiasts. I don’t care how engine works, how luxurious it feels. My only expectation from it to take me from A point to B reliably and with safety.
The urge is mostly because I look around and see people showing off their wealth and somewhere I am looking for validation of my hard work. In a country like India showing your house and car are two good ways for that.
I don’t have any interest now. My passion was coding for a long time but that is also died now. Beyond watching YouTube and Netflix I don’t do much. In a situation like that car is one thing that can excite me after a long time. I also don’t like travelling now. Travelling with kids is lot of work.
Hey, if you don’t mind sharing, could you walk me through how you built your net worth? Would really appreciate understanding your approach like income sources, investments, and any key decisions that made a difference.
Nothing exceptional. Only salary and savings.
Bhai to be honest the kids point is something which I agree. But if you are in a toxic work environment to keep you going you sometimes need the dopamine rush in the form of a car or a bike or whatever it is. This is my thinking.
If possible find a middle ground don't go for a bmw but go for a hilux or something (this is just an example for you to get what I wanna say) so that you get that dopamine but also you don't end up spending unnecessary funds.
Org is fine but it’s the anthropic I fear about 😊.
Go for it
Yes and take me on a joyride once you buy the 3 series 😝 You can look into repossessed/ second hand cars if you want some semblance of value for money btw. At the end of the day its an emotional decision and no amount of gyaan here is relevant to decide on the merits of this
Sure man.
Go for 2nd hand BMW 3 series
Cars above 30 lakhs are just straight status symbols. Effectively no extra functionality or safety is unlocked
If you are not a car enthusiast and buying just for some kick - don't buy.
Better subscribe to it. Maybe a yearly subscription costing 10-15 lacs is better...
