Car Budget

POSTED BY Rajendran ON October 9, 2010 12:04 am COMMENTS (5)


  I am single with zero debt and I have a safe job and invested only in MF, NCD’s, company FD, Stocks and Bank FD’s (No Real Estate). Now I am planning to buy a car and I am confused on what should be my car budget.

If my Annual Sal is X then what should be my ideal car budget. 

Also my another question is: I am saving around 70% of my salary is this strange or you folks do save this much? Thanks.







5 replies on this article “Car Budget”

  1. Rajendran says:

    @Manish… I am single so even my current 2 wheeler has space for 1 more. In US, they advise to spend max 6 month salary for car, of course they don’t save much.
    As we Indians save a lot. I think it would be better to spend 3/4th of our CTC for the car.

    whats your opinion on this?

    1. Rajendran

      the way I look at is very simple , If its required , go for it . If you can do without it , delay . it can be 3/4th or 3 times of your CTC , if you love it , spend .

      At the end its more about how you feel about spending from inside . I would spend a lot of money on travelling because I want to do it from my heart , what ever it takes, but I am not a kind of person who loves car etc , so I would postpone it till eternity


  2. Rajendran

    One of the principles of financial planning is to live like a KING when it comes to your passions and spent well on those , so if you are a car fanatic and its a great goal for you , then why to spend less , but a nice one even if it costs more , but have a plan for it like “I will buy this car in next 3 yrs” an damn save for it . Buy it

    But if its a pure necessity one then go for a budget car which is value for money . try to go for 2 wheeler for time being until you are just 2 🙂


  3. Rajendran says:


    How much you could able to save after marriage? Thanks.

  4. Ram says:


    I don’t see a correlation between a salary and a car budget. I think you should just buy the car that you like. Yes, if the car you like is beyond your budget then you need to look lower down the option list.

    When you’re single, 70% salary savings is very normal. This is just my experience/opinion.


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