Is it possible for a typical engineer to afford a brand new BMW / Audi Or Mercedes?

Is it possible for a typical engineer to afford a brand new BMW / Audi Or Mercedes?

I bet most of us here have dreamt of owning a BMW or an Audi or a Mercedes Benz in our lifetimes. Whether your are working in an IT company or a core engineering company - these toys are pricey and owning them requires a big bank balance. In India, the price of these cars begin at Rs. 25L and above. Since most of us end up investing our savings in buying a home; the dream of owning these super luxury cars dies out over a period of time.

I did some math and found out that it's almost impossible for a typical middle class engineer to own a luxury car if salary is the only source of income.

What's your take?

Update: Owning a brand new BMW, Audi, or Mercedes can be a significant financial commitment, especially for a typical middle-class engineer relying solely on their salary. While it may be challenging, it's not entirely impossible to achieve this dream with careful planning and financial management. Here are some factors to consider and a general plan to work towards owning a luxury car:

1. Determine your financial situation: Assess your current income, expenses, and savings to understand your financial standing. Look at your budget to see how much you can allocate towards saving for a luxury car without compromising essential needs and long-term financial goals.

2. Set a realistic savings target: Research the current prices of the specific luxury car models you are interested in and set a savings target. Consider factors like the down payment, loan installment, insurance costs, maintenance expenses, and taxes. It's important to have a specific amount in mind to work towards.

3. Create a dedicated savings plan: To accumulate the necessary funds, establish a disciplined savings plan. Determine how much you need to save each month to reach your target within a reasonable timeframe. Cut down on unnecessary expenses, track your spending, and allocate a fixed amount towards your luxury car fund.

4. Explore financing options: While it's ideal to save and purchase a luxury car outright, financing options like car loans can help you acquire the vehicle while spreading the cost over time. Research loan terms, interest rates, and down payment requirements. Make sure the monthly loan installment fits comfortably within your budget.

5. Increase your income: Consider ways to boost your income beyond your salary. Explore opportunities for freelance work, part-time gigs, or investment options that generate additional income. Increasing your earnings can help accelerate your savings and make owning a luxury car more attainable.

6. Plan for the long term: It's crucial to balance your desire for a luxury car with your long-term financial goals. Assess the impact of purchasing a luxury car on other financial objectives, such as retirement savings, emergency funds, or homeownership. Ensure that buying the car aligns with your overall financial plan.

7. Consider pre-owned options: If buying a brand new luxury car is still out of reach, you might explore the option of purchasing a pre-owned vehicle. Pre-owned luxury cars can be more affordable while still offering a premium driving experience. Thoroughly research and inspect the vehicle's condition before making a purchase.

Keep in mind, the timeline for achieving your dream of owning a luxury car will depend on various factors such as your income, expenses, savings rate, and financial discipline. It may take several years of consistent saving and financial planning to reach your goal.

Additionally, always prioritize financial stability, emergency funds, and long-term financial goals over the desire for a luxury car.

Replies

  • Kaustubh Katdare
    Kaustubh Katdare
    No takers to this discussion? Come on? Don't you dream of a luxury car? 😁
  • KSS Manian
    KSS Manian
    In tamil there is a saying "Varavu ettana, selavu patthana" (i.e.) "Your earnings are 8penny but expences are 10penny". I am lying below the middle class engineer shed. So for me it is like a dream.
    But I can make this dream real, If i start my own Construction consultancy.
  • lovebox
    lovebox
    Let's put the possibility factor aside and focus on the need factor.
    Do we really need that kind of car?
    Is there any point of putting all that hard earned money in to some fuel-guzzling vehicle? More so when you know that it is anyway going to crawl in the city road traffic.
    If I had that amount to spare I would put it in to some better use.

    Anyway, even the rich and famous around the world have no qualms driving around in a modest car. Check these out:
    • Mark Zuckerberg - Honda Fit (American market version of the Honda Jazz).
    • Bill Gates - Ford Focus
    • Warren Buffet - Cadillac DTS ($45000), which he purchased in a show of support for General Motors during the American automakers' financial crisis and subsequent government bailout.
    • Steve Ballmer - Ford Fusion Hybrid
    • Eric Scmidt - Toyota Prius
    • Leonardo DiCaprio - Toyota Prius
    • Ingvar Kamprad - Volvo 240 (1993 model)
    What are your views CEans?
  • Kaustubh Katdare
    Kaustubh Katdare
    When it comes to 'needs' - you don't really need Internet, a wrist-watch, a computer, that fan or AC, Internet, mobile (the list is endless). A luxury car is a 'want' - and it's the 'want' that drives people forward; provided needs are all taken care of.

    We aren't certainly getting in the debate of 'need' vs. 'want'.

    I'd really want this discussion to go in the direction of techniques which 'may' enable us to buy that car! πŸ˜€
  • KSS Manian
    KSS Manian
    @#-Link-Snipped-# - I hope the people you mentioned in the list must having a luxury car in their carriage. But the favorite is what you mentioned.
  • lovebox
    lovebox
    Kaustubh Katdare
    When it comes to 'needs' - you don't really need Internet, a wrist-watch, a computer, that fan or AC, Internet, mobile (the list is endless). A luxury car is a 'want' - and it's the 'want' that drives people forward; provided needs are all taken care of.

    We aren't certainly getting in the debate of 'need' vs. 'want'.

    I'd really want this discussion to go in the direction of techniques which 'may' enable us to buy that car! πŸ˜€
    Hmm! Then perhaps the best bet could be to get in to a business or starting an enterprise, working hard enough, and at the same time being fortunate enough,to earn the kind of money that gives us that purchasing power in a short period of time.

    Regarding the Internet, computer, and mobile phone, I think they are devices of convenience and help us improve efficiency.
  • lovebox
    lovebox
    KSS manian
    @#-Link-Snipped-# - I hope the people you mentioned in the list must having a luxury car in their carriage. But the favorite is what you mentioned.
    Perhaps. I am not sure about that. But most of the times they do drive around in the cars mentioned.
  • Pensu
    Pensu
    Interestingly most of the people on Quora have said "yes" to this. I think it's going to be too hard to get a luxury car. Reason : We first want a home sweet home! I am living in Bangalore, and it's quite costly to buy a descent home here. Now, let's say you can manage to save some money to buy a big car, but how about it's maintenance? Plus you would be missing a lot to save that money, you might have to live like a monk! So, in my view it's a long shot to have a luxury car with salary.
  • KSS Manian
    KSS Manian
    Pensu
    Interestingly most of the people on Quora have said "yes" to this. I think it's going to be too hard to get a luxury car. Reason : We first want a home sweet home! I am living in Bangalore, and it's quite costly to buy a descent home here. Now, let's say you can manage to save some money to buy a big car, but how about it's maintenance? Plus you would be missing a lot to save that money, you might have to live like a monk! So, in my view it's a long shot to have a luxury car with salary.
    Agree with you. If you are a salaried, its very hard to imagine to buy. Buying a Home (or) Dream car should be varied depend on one personal character. If you are so crazy about the motor vehicle then you might think about buying a dream car.
    For me I am so crazy about driving a motor vehicles. I bought Pulsar at 2007, at the same day when I purchased I directly drove my bike to the mechanic shop to modify my bike for my needs. I changed the body color, wheel, handlebar, silencer etc. All my friends are scolding me, because every people want to go to temple or somewhere.
    PS: If I have a choice to buy a car or anything else, I will buy the car first. πŸ˜€
  • Kaustubh Katdare
    Kaustubh Katdare
    I think the investments made in buying a home eat up significant amount of the monthly income. I've seen a lot of people trusting a lot on mutual funds. I'm not sure if executing SIP would allow us to buy the dream car.

    I think if you could work out something in your part time (income through blog or freelancing); you should be able to afford the car.
  • Anand Tamariya
    Anand Tamariya
    Rs. 50k per year invested over a period of 25 years @12% can get you 1 crore. Audi A4 costs around Rs. 35lakhs today. So not totally impossible.
  • Kaustubh Katdare
    Kaustubh Katdare
    @#-Link-Snipped-# - Right; the math does work that way. Sparing that sum every year; provided you've to take care of the EMIs and your regular expenses; not many people would find it easy to invest that amount for 25 years. But I agree- it's possible.
  • Kaustubh Katdare
    Kaustubh Katdare
    PS: One more way, which I won't recommend, is to find a rich man in need of a kidney. β˜•
  • KSS Manian
    KSS Manian
    Kaustubh Katdare
    PS: One more way, which I won't recommend, is to find a rich man in need of a kidney. β˜•
    😁😁😁. Nice way. Will try using yours @#-Link-Snipped-# .
  • Anoop Mathew
    Anoop Mathew
    Anand Tamariya
    Rs. 50k per year invested over a period of 25 years @12% can get you 1 crore. Audi A4 costs around Rs. 35lakhs today. So not totally impossible.
    Although it is possible as you have said for someone working in India. The time of necessity or the thrill of youthful riding dies down at that age (you'll be probably 50 by that time) - not to mention the fact that you'd be a family man with kids growing up as well. Atleast in most of the cases I've seen you need a real high pay to get that costly if your only source of income is from working in India.

    P.S.: When you look at it (new car)- maintainence vice, it's better to own another new house instead!

    P.S.S: Second hand cars are always another option to consider and often cheaper as well (well excluding the maintainence costs)!
  • Avis1
    Avis1
    Anand Tamariya
    Rs. 50k per year invested over a period of 25 years @12% can get you 1 crore. Audi A4 costs around Rs. 35lakhs today. So not totally impossible.
    Wtf.We bough a plot that cost just 17000 rupees when people were buying color TV and we were having Weston Black and white TV.I was a child,i cried for TV,My dad said NO,NO.He bought the plot and that cost now about Jaguar Car(1 crore).
    I said can i buy Jaguar,my dad said no. I am doctor now and cannot compare the knowledge of business to my dad who is a farmer(BCOM second year).
    Gonna buy UHD TV after marriage,lol to my brain.
  • Rajni Jain
    Rajni Jain
    Kaustubh Katdare
    I did some math and found out that it's almost impossible for a typical middle class engineer to own a luxury car if salary is the only source of income.

    What's your take?
    I know a simple engineer cum entrepreneur who bought Bought BMW S1000RR Bike - Finally! 😁

    If not this, than normally its not possible until you have a STRONG family background who left millions of rupees for you.
  • Kaustubh Katdare
    Kaustubh Katdare
    Rajni Jain
    I know a simple engineer cum entrepreneur who bought Bought BMW S1000RR Bike - Finally! 😁
    I'm proud to say I can easily buy 2 of those any moment! πŸ˜€
  • Anil Jain
    Anil Jain
    Kaustubh Katdare
    I'm proud to say I can easily buy 2 of those any moment! πŸ˜€
    You know, after your thread even I bought a Ducati
    (*same bike that you had on your desk 9 years back)
  • Ramani Aswath
    Ramani Aswath
    Kaustubh Katdare
    I did some math and found out that it's almost impossible for a typical middle class engineer to own a luxury car if salary is the only source of income.
    The only child of an engineer friend of mine turned up in a Rs40+ lakh Audi at my office. He told me apolegetically that he sold some real estate they had near the airport and bought this.
  • Kaustubh Katdare
    Kaustubh Katdare
    Sometimes I wonder whether we should focus on saving money and investing while keeping the 'wants' under check. But there's other side of me that says that money's useful only when it's spent.

    I'll write an example from my own life. Back in 2003 and 2004 when my friends and I had no job (and only an engineering degree); we traveled by bus a lot from home-town to Pune. I hated traveling in a bus so much that I made a commitment to myself that I will travel 'first class' whenever I'm in a position to afford it. There were times when I lived in Pune and was making just enough money to afford air-travel back to home-town. I preferred paying Rs. ~4k for air tickets over Rs. 600 - Rs. 800 for a bus ticket; even though it's just an overnight journey. My friends called me an idiot; but I enjoyed it (and still do).

    I'm not sure if I was right or wrong. If there's an upcoming travel; I start saving up; but prefer air-travel over bus or train. It's just me. I found a way to afford air travel by cutting down on other expenses.

    Oh yeah, I do hope to be able to buy a BMW some day. β˜•
  • Ramani Aswath
    Ramani Aswath
    Kaustubh Katdare
    but prefer air-travel over bus or train.
    Totally in sync with that.
  • rithesh salian
    rithesh salian
    If u r fair enough to take any kind of risk in good terms than u can have it.
  • Saandeep Sreerambatla
    Saandeep Sreerambatla
    Its impossible and slightly possible if you are interested to pay emi for many years.
  • Anil Jain
    Anil Jain
    There are two facts associated , buy an elephant and feed it!!

    Even though one will buy these ultra luxurious cars by spending his savings and taking loans, what about cost of maintenance. One need to pay insurance, servicing and maintenance, fuel for these cars which would come near about the cost of a small car πŸ˜€rofl: probably nano / 800) in a year.

    Buying any car is not a big deal and as we say, Nothing is impossible. But, per me not advisable for a commoner.
  • rithesh salian
    rithesh salian
    Required for people in the marketing field to show off the standards,
    Depends on person to person.
    *Not necessary for the person who thinks of survivals.
    *Easy to buy for the person who like to take risk and know to survive in any condition. Get it ,use it, replace it.
  • Ankita Katdare
    Ankita Katdare
    It's interesting to see, none of the engineers around here think of "It's my own money. I'll spend it on whatever I want, whenever I want." β˜•
  • Saandeep Sreerambatla
    Saandeep Sreerambatla
    Ankita Katdare
    It's interesting to see, none of the engineers around here think of "It's my own money. I'll spend it on whatever I want, whenever I want." β˜•
    Yeah, its my own money but i can buy a BMW tyre πŸ˜›
  • Neo 24
    Neo 24
    Gone through the whole discussion. Unfortunately, negatives were more than positives here. However, i strongly believe, one with an annual package of 7 lacs plus could think of owning it (specifically Jaguar XF).
    Though thinking of next 20 years continuously paying EMI for a car seems ridiculous, but its just a matter of initial 5-7 years. Later then, paying 40K per month wouldn't be a big deal. I know people, whom salary has increased to around 200 times in a span of 40 years. This clearly indicates, what's the value of 40K now, wouldn't be the same after 10 years. If one has the ability to consistently pay EMI for initial 7 years, he/she would definitely be in a better position to pay it later on.
    And yes, if one has the onsite opportunities, that's a plus point undoubtedly.

You are reading an archived discussion.

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