Recently Luxury Brand Mercedes CEO Santosh Iyer commented that SIP has become a competitor for them.

He Said Indians Do want to buy Mercedes cars but, they postpone it thinking they should continue their SIP instead of taking an extra Car loan EMI

Unlike the west, Indian people have a strong saving mindset.

In West People spend their future Money (Thru Credit Cards and Loans) in India, people prefer to save and then spend.


Statistics That Matter:

To an Extend, Merc CEO is right, SIPs may have spoiled some prospective sales for him.

At least the Statistics say so.

  • Around 141.44 Lacs new SIP accounts were opened from April – October 2022.
  • Indian mutual funds have about 5.93 crore SIP accounts.


The Luxury Dream:

  • However, it is a fact that, everybody wants to own a luxury car. But it needs a reality check on your finances.
  • Unless you have different streams of income and have an Earning/Wealth so much that you will not be affected by purchasing this new luxury car.
  • Thumb rule can be to check if you can still save 15% of your monthly income after the EMI
  • The 2nd check would be to ensure that you have an emergency fund amounting to 6 times of your monthly income.
  • DONT EVEN DARE TO DREAM OF BUYING A LUXURY CAR if these criteria are not fulfilled


Also, a smart financial way would be to have a used luxury car because a luxury car loses almost half of its price after 4 years.

Luxury cars are built to last, so why not take advantage of their quality and buy a used luxury car.

The pre-owned luxury car market in India crosses 60,000-unit sales, up 20% in August 2022.

Other Factors You should NOT IGNORE

  • Before even owning a used car, you need to check if you can afford its running and maintenance.
  • A 2017 luxury car model would cost Rs.25,00,000 in 2022 but its fuel and maintenance cost would be in line with that of a new 2022 model.
  • The mileage and maintenance of luxury cars are even far expensive.
  • On average You should expect to spend Rs.1,50,000 a year on upkeep and this cost may increase further as the car gets older.


However, no argument that luxury cars have better ride and build quality, so to maintain the standard of quality even their spare parts are very expensive.

Comparatively The headlights of a Hyundai Verna might Cost Rs.12,000 while for a Mercedes Benz it would start at Rs.1,20,000.

Well, a proper insurance policy may be of some help if the headlights are broken due to an accident.


We hope This article makes your financial wisdom richer and it should help you to take their crucial decision when it comes to buying your Dream Luxury Car.


besmart app quote


besmart google playstore app
besmart apple ios app
besmart smart phone

Head Office (Panjim)

Gera Imperium 1, 606, 6th Floor, Patto Plaza, Patto Centre, Panaji- Goa 403001

Branch Office (Vasco)

1st Floor, Shop no. 114, Anand Trade Centre, Opp. MMC Building, Vasco, Goa.

Branch Office (Verna)

Shop No. 6, Verna Classic Bldg, Near HDFC Bank, Verna Industrial Estate, Verna- South Goa.