We want to purchase New Car. Our Budget is Rs 6 to 7 Lakh. Our driving will be 500 to 1000 km per month. Kindly guide us can we purchase hatchback & vehicle name, new or old also fuel petrol-cum-CNG model. Manual or automatic? We are running 58 years old. And we will first time drive the car.

Please help to take decision on the ground Safety, Security, Cost, Mileage, etc.

Ans: Hello Tanniru,

Yes Tata Nexon is indeed an excellent choice with a diesel mileage of 17 KMPL in city driving and 20 KMPL in highway driving and safety rating of 5 stars it’s a great select. As per our knowledge Skoda Kushaq does not have a Diesel engine option and only comes in petrol engine but Kushaq is also a great choice with mileage of 19.2 KMPL and good safety features like automatic headlamps, ABS with EBD, rear parking camera, hill assist, multi collision braking system etc.

You can also buy Hyundai Creta or Kia Seltos in this range which offers a great set of features and are value for money.

You can also consider newly launched cars like Mahindra Scorpio N, Maruti Brezza 2022 and Hyundai Venue Facelift which are also a great choices.

Ans: Hi Paresh,

Here are some recommended cars by us according to your preference. All these cars have received good safety rating from NCAP and are highest selling cars in India.

1. Tata Punch

Tata punch’s price starts from Rs 5.93 lakh Ex Showroom. It comes in 19 different variants for you to select from. It comes in Petrol option with Automatic and manual transmission. The mileage of this SUV is 18.97 kmpl. Standard safety features on the Punch include dual airbags, ABS, EBD, brake sway control, seatbelt reminder, high speed alert, rear parking sensors and ISOFIX child seat mounts.

2. Tata Altroz

Tata Altroz’s price start from Rs 6.2 Lakh Ex Showroom. It is premium hatchback offered by tata motors. It has 17 petrol variants and 12 diesel variants to choose from. It has some of the amazing features such as a 7-inch floating touch screen infotainment and Harman entertainment unit, 7-inch digital instrument cluster, automatic headlamps and wipers and segment-first 90-degree opening doors.

3. Toyota Urban Cruiser

Toyota Urban cruiser’s price starts from Rs 8.88 Lakh Ex Showroom. It is available in 6 petrol variants to choose from. It is 5 seater compact sports utility vehicle is known to have a substantial boot space of 328 litres. It has mileage ranging between 17.03 to 18.76 kmpl. Some of the cool features of it are mart Hybrid Technology, Cubby Holes for storage in the Cabin and Speed-Sensitive Auto Door Lock.

Apart from these you may also look forward towards Kia Seltos and Kia Sonet, they have some amazing features and great looks. Also they have low cost maintenance. Renault Kiger and Tata Nexon may be added towards this list.

Ans: Considering all your requirements, there are two cars which tick all the boxes: Maruti Baleno and Honda Amaze. Both of these cars fulfil your requirements and your purchase decision won’t be wrong if you purchase either of the two.

Ans: Understanding Your Needs
Residing in Chennai, a hot and bustling city, presents unique challenges and opportunities for car ownership. Your family includes yourself, aged 54, your wife, aged 51, and your son, aged 18. You wish to buy a car for occasional city use, primarily for marriage functions and similar social events. You prefer a Toyota, known for its engine stability, and an automatic petrol version for convenience.

It is understandable to want a vehicle that reflects your status, especially when relying on call taxis can sometimes feel awkward. With a budget below Rs 15 lakhs, let's evaluate whether you really need a car and which model would suit your requirements best.

Assessing the Need for a Car
Considering your situation, purchasing a car could provide several benefits. It offers the convenience of transportation on your own terms, eliminating the need to wait for taxis. It also provides a level of comfort and status during social events. However, owning a car also comes with responsibilities and costs, such as maintenance, fuel, insurance, and potential depreciation.

Evaluating the Costs
Initial Purchase and Depreciation:

A car's purchase is just the beginning of its expenses. Cars depreciate over time, losing value as they age. This depreciation is something to consider, especially if you plan to sell the car in the future.

Maintenance and Fuel:

Regular maintenance is necessary to keep the car in good condition, and these costs can add up. Fuel expenses are another significant factor, particularly with petrol vehicles. Given your monthly usage of 60 km, fuel costs may be relatively low, but it's still an expense to account for.

Insurance:

Car insurance is mandatory and ensures protection against accidents and damages. The insurance premium varies based on the car model, age, and other factors. It's crucial to factor this into your budget.

Financial Planning for Car Purchase
Ready Cash vs Loan:

You have the option to purchase the car with ready cash or through a loan. Paying in cash avoids interest costs and can sometimes get you a better deal. However, using a loan might help manage your cash flow and retain liquidity for other investments or emergencies.

Avoiding Income Tax Eye:

To avoid drawing attention from the income tax department, it's essential to keep the car purchase within your financial means. If opting for a loan, ensure the EMI is affordable and doesn’t strain your monthly budget. Proper documentation and transparency in transactions will help avoid unnecessary scrutiny.

Choosing the Right Model
Given your preferences and budget, let's explore some suitable Toyota models. Toyota is renowned for its reliable engines and durability, making it a wise choice.

Toyota Glanza:

This model is an excellent choice within your budget. It offers good mileage, a comfortable ride, and the reliability Toyota is known for. The automatic version would provide ease of driving, especially in city traffic.

Toyota Yaris:

Another good option is the Toyota Yaris. It comes with a comfortable interior, advanced features, and Toyota’s trusted performance. The automatic petrol version fits well within your requirements.

Benefits of an Automatic Petrol Car
Ease of Driving:

Automatic cars are easier to drive, especially in heavy city traffic. They reduce the stress of manual gear shifting and provide a smoother driving experience.

Maintenance:

While automatic cars can sometimes have higher maintenance costs, Toyota’s reputation for reliability can mitigate this. Regular maintenance as per the manufacturer’s guidelines will ensure longevity and performance.

Conclusion
Given your situation and preferences, purchasing a car seems like a reasonable decision. It will provide the convenience and status you seek, especially for social occasions. Within your budget, Toyota Glanza or Toyota Yaris are excellent choices, offering reliability, comfort, and the convenience of an automatic transmission.

When it comes to financing the purchase, paying with ready cash might be the better option if it doesn’t strain your finances. It avoids interest costs and keeps the transaction straightforward. However, if you prefer to maintain liquidity, opting for a loan with manageable EMIs is also a viable choice.

Ensure to keep all financial transactions transparent and well-documented to avoid any issues with the income tax department.

Ultimately, owning a car can enhance your lifestyle and provide significant convenience. Make sure to choose a model that fits your budget and needs, and plan your finances carefully to enjoy the benefits of car ownership without unnecessary stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in