First things first. In last week’s column, a crucial point was lost for want of emphasis. For 20 years, Srivathsa Balaji was patiently putting aside money, scrimping on comforts, giving in to scruples whenever he allowed himself a costly indulgence, just to ensure he bought his dream car without taking a loan.
This year, he bought his BMW 3 Series 320d Prestige with ‘zero loan’, as he likes to put it. That is the crux of the matter. A guy who often relied on public transport, including share autos, saving patiently for an expensive car, finally realising his dream without the support of car finance. That is an achievement, especially when you consider how irresistible car loans have become.
The first two times I bought a car, I resisted the temptation of a loan, adjusting my aspirations to suit the size of my wallet. The third time, I yielded to it. In a showroom located 300 metres from our house, we chose our car. The car dealer facilitated the entire loan process, which involved a bank that had a branch just 300 metres from the showroom. Assistance to customers in the loan process is now one of the key parameters defining the performance of a car dealership.
Automobile enthusiast Srivardhan Srinivasan recently shared a personal experience.
“There is assistance at every step. It begins the day you book your test-drive. When my daughter called a dealer to test-drive a particular car, two representatives landed at our doorstep with the machine — one to enlighten her about its features and the other, about how to go about getting it with a quick and attractive loan,” he explains.
Srivardhan recalls how decades ago, taking a loan was equated with financial imprudence.
Seen in the light of current realities, it was an extreme stand, which, however, could be forgiven if the economic conditions of those times were taken into account.
Says Srivardhan, “We are living in times when salaries match aspirations. Easy car loans enable people to fulfil their aspirations. On the flip side, they encourage people to overreach themselves. Taking a loan, one pledges his future. But the future is always uncertain. Before choosing a car and deciding on a loan amount, one has to ask himself, ‘If there is a crisis in my career and I get a pink slip, will I still be able to pay my EMIs towards the car loan comfortably from my savings until the professional situation improves?’ If the answer is yes, go ahead.”
Or, patiently squirrel away money until you can make a full, loan-free payment for your dream car, just as Srivathsa did.
