![Kaustubh](https://www.crazyengineers.com/img/avatar.jpg)
Member • Jan 2, 2014
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.