FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Which car is ideal for you? A checklist!
When you have quite a bigger amount of money to spare on buying a car or rather as they say, you have arrived in life; it’s time for a luxury sedan or at least a sedan. The price range could be 8-15 lakhs for this category. The cars are longer, more spacious and the price tag is higher on account of the luxuries included and for the designs of the car. The seating would mainly be suitable for 4 people comfortably. This is the second biggest category of cars available in the Indian market.
Planning to buy a new car? Confused as to what type suits you and which model to buy? This is a ready reckoner for models available in India.
In choosing the right car for yourself you need to answer two fundamental questions
- What is the main need for your car
- What is the budget you have to buy your new car?
Once the above two questions are answered reasonably, it easier to zero-in on the model that will satisfy your requirement.
What is the need for the car?
Some of the answers for the above question could range from; for basic transportation for one individual, as a family car for a family of four, for adventure activities like mountain driving etc, for a big family of 8-10 people, for commercial uses like a taxi, as a luxury statement, for using on weekends or leisure travel.
A very Indian concept is that the above mentioned uses might overlap as we are still to become a society where we have 3 cars in the house; each for a specific purpose.
The answer to the second question could be broad ranging. 1-2 Lakh, 2-3 lakh, 3-4 Lakh and so on. With the influx of numerous car manufacturers in the country and the huge number of models that they have launched, it has become possible even to have multiple choices in a price band of Rs 50,000/-. Say 4, 50,000/- to 5, 00,000/-
Let’s now take a closer look at the choices we have.
Basic usage: A car for a single user. Say an executive of a company driving on company work, a student going to college, a housewife using a car for household purchases and dropping children at school. This requires a compact car, with space of four people to sit comfortably and also one which is a no hassles car. The ideal car would be one of the entry level models as the car usage will not justify a big/expensive car.
The models available in India to satisfy this need in the sub – 4 lakh range are:
Maruti – M800, Alto, A-Star, Zen Estilo, Wagon R
Fiat – Palio, Punto
Chevrolet – Spark, U-VA
Hyundai- Getz, Santro, i-10
Tata – Indica, Nano
Similarly for the same need if the budget is between 4-6 lakhs then the models available in India are
Ford: Ikon, Fiesta (basic), Fusion
Hyundai: i20, Accent, Verna
Mahindra Renault: Logan
Big family car: Van or Pick up
If the number of members in the family is above 4 then it would be more apt to go in for a larger car or a Van. This will ensure that everyone can sit comfortably and there is also space for any luggage or shopping which can be kept in the car.
The options available in the Indian market for this category are:
Tata: Sumo, Safari
Mahindra & Mahindra: Xylo, Scorpio, Bolero
Style statement: When you have quite a bigger amount of money to spare on buying a car or rather as they say, you have arrived in life; it’s time for a luxury sedan or at least a sedan. The price range could be 8-15 lakhs for this category. The cars are longer, more spacious and the price tag is higher on account of the luxuries included and for the designs of the car. The seating would mainly be suitable for 4 people comfortably. This is the second biggest category of cars available in the Indian market.
The choices available in the Sedan category in India are:
Ford: Fiesta (higher end)
Chevrolet: Optra, SR-V
Honda: City, Civic
Skoda: Laura, Octavia
Man among machines:
If the need is only a car that is a macho statement and the budget is not much of an issue, then the segment suited for you is the SUV segment. SUV stands for Sports Utility Vehicle and the cars are usually mean looking machines with a macho touch. The space for passengers is larger and can usually accommodate at least 7 people comfortably. The price tags range from 10 Lakh to 50 Lakhs on average.
The models available in India in the SUV segment are:
Toyota: Land cruiser
Mitsubishi: Pajero, Outlander, Montero
Maruti: Grand vitara
Some of us may need vehicles which are only for lugging loads from point A-B and not to be looked as a car. Ideally this is a vehicle with a lot of space for keep material and capacity to seat 2 persons at the max. The car might not be taken/driven to a function’s front entrance but might be suitable to carry material to the rear gate. Some models available in India in this category:
Mahindra: Getaway, Bolero
Tata: Sumo, Xenon
As seen from the above discussions, the Indian customer is spoilt for choices when choosing a car to satisfy his/her needs. There are many models in the above 30 lakh category which are vehicles which are purely brought for the luxury of style value than purpose of use. The reasons why people will buy these vehicles are for the fact that they have arrived in life many years ago and it’s time to splurge on luxuries. Keep an eye on this column to get an analysis of cars available in that segment too. Happy driving!
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