From mint · Garvit Bhirani · · 1m 20s
UPSC Educator Rejects Car as Depreciating Asset
UPSC educator says cars save 250-700 hours yearly and should be bought by those earning over ₹1L/month.
In brief
UPSC educator says cars save 250-700 hours yearly and should be bought by those earning over ₹1L/month. UPSC educator Amit Kilhor advises people earning more than ₹1 lakh monthly to buy cars, claiming they save 250-700 hours annually by reducing commute time. Originally reported by mint.
UPSC Educator's View
UPSC educator Amit Kilhor rejects cars as depreciating assets, advising buyers earning over ₹1 lakh monthly to purchase vehicles.
“Car is a deprecating asset is the stupidest sentence in finance”
Time Savings Claim
Kilhor states a car saves 250 to 700 hours annually by reducing commute time for daily use.
Income Threshold
Kilhor advises people earning more than ₹1 lakh per month to buy cars as a practical investment.
Comparison to Daily Items
Kilhor compares cars to everyday purchases like phones and clothes that also depreciate but serve practical purposes.
Financial Benchmark
Kilhor suggests using half of annual income as a guideline for car purchase price to avoid overstretching budgets.
Vehicle Examples
For ₹12 lakh earners, Kilhor recommends Maruti Suzuki Baleno over Mahindra Scorpio; for ₹30 lakh, Toyota over Audi.
Interest Cost Example
Kilhor cites ₹80,000 interest over five years for a ₹10 lakh car as reasonable given time savings.
Depreciation Analysis
Kilhor notes ₹1 lakh annual depreciation for a ₹10 lakh car after five years but emphasizes practical utility over resale value.
The bottom line
UPSC educator Amit Kilhor advises people earning more than ₹1 lakh monthly to buy cars, claiming they save 250-700 hours annually by reducing commute time.
