The right car price: getting the most value for the lowest price

20-30 rupees is the ideal place, after which you start to suffer from diminishing returns.

BHPian akshye Recently shared this with other hobbyists.

For any product, there is a point of return in return – a price point, beyond which, the gain is not much in relation to a significant increase in price.

In the case of audio equipment, some refer to the 80:20 rule – at 20% (of the best available prices), I almost reached 80% quality (of the best offered prices). After that, you will not get noticeable quality gains for the next more expensive product.

In your experience, where is the point of diminishing car returns? On both sides – a luxury car or a sports car.

This is what GTO He should have said about this:

Great thread idea.

I would say 20-30 lakh rupees, depending on the body style. Cars with an area of ​​10 lakh are very basic now, while cars of more than 40 lakh are quite expensive (including the Fortuner & C-Class). 20-30 lakhs is the perfect place, after which you start to suffer from diminishing returns.

If it’s a crossover/SUV, do you really need anything more than a fully loaded Creta/Safari/Hector/XUV700 in your life? Among the sedans, the Octavia surpasses its weight and easily matches the 50 lakh sedans in many parameters. Honestly, even Honda City (more space than A4) and Slavia 1.5 TSI are sedans that meet all needs. MPV? Does anyone really need any more “car” than the Innova Crysta or Carnival (whose alternatives were less than 30 big cars)?

Nobody needs any more cars than those of 20-30 lakh. Anything beyond that attracts the law of diminishing returns. Hell, other than the Model and 4×4, I consider the Innova Crysta a superior car to the Fortuner. Cannibalism was so much that Toyota discontinued the version of the Innova 2.8L AT to differentiate the Fortuner.

This is what BHPian V. Narayan He should have said about this:

80% of the attribute value can be 99% for one person and 50% for another. And it all varies with the size of the buyer’s pocket, the buyer’s attitude {wish to show off or otherwise}, and the traits he prioritizes. You could have a buyer who can afford a Mercedes S-Class but would prefer an E or even a Camry to stay under the radar for his position. For others, it could be the other way around. So I think 100 car buyers would have 101 views on a topic like this.

This is what BHPian locusjag He should have said about this:

I agree with Mr. Narayan here – I’m a restricted enthusiast in the forum (Larry David’s “Curb Your Enthusiasm” and her famous song come to mind). Surely we are all car lovers here. But I was holding back my enthusiasm for several reasons, most of which are rooted in our reality…

As a restricted enthusiast, anything over 5-10 lakhs is the point of diminishing returns for me.

Here’s why – we’re starting to pay a very high price to help protect the world, right here in India. This is at a time when citizens of the developed world are experiencing horrific carbon footprints, due to winter heating, transportation of necessities over longer distances and declining population density (for example, Canada, Australia, Texas in the US etc.), terrible consumption-driven lifestyles (on For example, Fijian spring water, which is produced on one side of the globe, is shipped across the world) etc. My friend is in Connecticut, USA, he can drive his 20 yr old $1,500 and 300,000 miles on the odometer. All he has to do is take a fitness test once every 3 years, and it’s good to keep doing it. Meanwhile, our NCR region has an unhelpful 10/15-year ban on ICE vehicles. Kolkata started imposing Scrabge rule for 15 years now. This cancer will start to spread.

On the other hand, we have leftover burning by farmers (endorsed by Greta the Terrible), rampant burning of litter and many other real contributors to poor AQI and greenhouse emissions (global shipping industry running on crude oil, construction industry, meat industry etc.) . Car owners are sure to be easy targets for agencies like NGT and our courts 100%.

Whatever you buy now is sure to be affected by the dumb-ass law wherever you live in India – just give it 5-10 years.

So when I look at all these cars in the 10+ lakh range, I am unable to appreciate all of their features when I post their inevitable fate at the hands of the scrap facility auto crusher. And, of course, there is the possibility of an imminent decrease in the value of cars as a result of obligatory scrapping. There is a healthy chance that all of our current cars are money pits! So I just need a car that works and provides returns on my minimal investment at the moment. My strategy going forward is to spend as little money as possible on ICEs so I can get rid of them when needed, without having to shed tears for them.

Thus, any car that can do more than run reliably is really outside the point of diminishing returns for me.

Damn you, Greta.

note: I am not against measures to limit global warming. I’m only against charlatan charlatans about climate change and “safe” but useless measures against soft targets like car owners. If we are seriously planning to deal with global warming, I believe that humanity should prepare to tackle our toughest and most important problems first, even if it means getting rid of wasp nests like reducing meat consumption, burning hay, etc.

This is what BHPian SmartCat He should have said about this:

Car prices for the past two decades:

  • 2004 -> Chevrolet Optra -> Rs. 11.3 liters
  • Year 2010 -> Honda Civic -> Rs. 8.3 liters (used)
  • 2015 -> Maruti star -> Rs. 3.3 liters (used)
  • Year 2016 -> Honda BRV -> Rs. 15.1 liters
  • Year 2021 -> Hyundai place -> Rs. 12.2 liters

My nice parking spot is obviously Rs. From 10 to 15 liters of the price range.

That’s because cars and consumer electronics like TVs/phones etc are immune to price inflation. Meaning, for the same price, you’re now getting a better product than X years ago. Examples:

  • The Rs 10,000 phones bought in 2022 will be better than the Rs 10,000 phones bought in 2012.
  • A car purchased for Rs 15 lakh in 2022 will be better than a car purchased for Rs 15 lakh in 2012.

When you get a better product for the same price, I see no reason to spend more on a car over the years.

Check out the BHPian comments for more ideas and information.

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