Tuesday, November 1, 2016


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Buying a car v/s uber
Any car  in india cost atleast Rs 6,00,000
Scrap value after six year  -    Rs 1,00,000
Net amount goes in effective
Life of six year                          Rs  5,00,000
Nos of days of six yr is 2200 days

So Rs. 5,00,000/2200        = Rs.   230 /day
Yearly insu Rs 15000        = Rs       41/day
Daily petrol      minimum   = Rs    100/Day
After every 3 yr tyre &
Battery change charge
Rs 25,000  i.e.                      = Rs. 23/day
Yearly maintanance of
Car Rs 9000 i.e                    = Rs  25/day
If driver employed ( bcas)
Uber comes with a driver   =Rs 300/day
Plus interest loss on
Car buying amount
@8% on Rs 6,00,000           = Rs 131/day
So total daily exp is
After buying new car         = Rs 850/day
So friends untill you pay Rs 850 daily to hire a cab you are effectively in gain travelling in uber. If u agree share for the benefits of all.
This is called financial planning.........

As you scale up Financially, you start adding latest gizmos too..The latest i- 
phone, the latest laptop and obviously the next on your radar would be the  
BRAND NEW CAR (sometimes, even a High End Second Hand Car)  

Having your own Car obviously shows to the World that YOU HAVE ARRIVED!!  

But, have you truly??? 

 Is it worth buying a Car just to show off?  

Is it financially prudent decision??  

Just like buying a Smartphone brings with it loads of accompanying recurring  
expenses like Data Plan, App Service Fees, etc and thus force you to do  
research before buying one....  

Same goes towards buying a Car too...  

Buying a Car brings with it loads of recurring expenses like Regular Servicing,  
Annual Insurance, Parking, the Regular repairs and not to forget Depreciation  


True, there are hordes of Ads all over the place luring you...  

Low Rates, Longer Warranties, Higher Mileage, Promised Buyback, etc.  


So, before heading off to purchase your New Car consider the following:  

1. Do you have any load to clear off ? (Education, etc) 
2. Do you have a Secure Job? 

3. Do you have a BIG expense coming up (your marriage, perhaps?) 

4. How many times you will be taking out the Car.... (Are you buying the car to 
show off or do you really NEED it)  


And, last but not the least......  

Do not forget this is the era of Door Services and hence just a click of a button,  
you have a chauffeur driver Cab (Uber/Ola) on your doorsteps to serve you at  
very nominal rates.  



For your information, a recent article in www.fastcoexist.com revealed that  
there was a almost 30% drop in the number of cars purchased by people aged  
18 to 34 in the US!  

Remember, CAR is ultimately a Tool to travel and not an Aspiration, especially  
for those who have just started earning.  

First earn your Millions and then think of a Personal Car.  

I personally do not own one. Many of my Advisor friends are shocked and ask  
me “What will your clients think about you”  
I reply “My client comes to me for my Knowledge not to look at my Means of  


And, moreover for me, REAL VACATION is not driving for many hours, hundreds  
of miles in my car with full of stress.....I would rather relax and enjoy the  
Shatbadi Train Journey or the good old Volvo A/c Bus without having to worry about navigating the Traffic!!!  

1 comment:

  1. I own a car and travel by Ola twice a day. I disagree with many points in this article. First one is to see the car as an investment. I believe not everything in life needs to be an investment. Life is definitely beyond just investment even though sound investment will keep you safe and secure.

    Travelling by Ola, I have to put up with
    1. Smelly cards
    2. Bad driving
    3. Spend time on booking the car, telling the driver exactly where to pick me up. If I have luggage, I have to waste time telling him where in the apartment he has to come and wait. Call the security to let him in.
    4. Having to tell the driver the directions everyday because the google maps don't necessarily show the correct directions and doesn't let you choose the route you want. Most drivers are new and don't know directions
    5. For many of us, driving is fun. It gives us a sense of control behind the wheel on long drives to outstations.
    6. Haggle with the drivers to increase AC fan speed.
    7. No control over music/videos
    8. Hygiene issues. Drivers won't keep car clean the way you do. There are times, I cancelled the car purely because of this.
    9. Getting stuck with no vehicles during strikes. Recently happened for a week in Bangalore.
    10. No safety for kids as child seats are not available in a Single car.
    11. You have no control over the safety as you can't decide the number of safety features in the Ola car. You can't keep an eye on every driver to make sure they don't jump signal.

    At some point in life, things will cease to be ONLY utilitarian and they might serve different purposes. In this case, cars are not simply devices that take you from A to B. They are definitely more than that.


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