Comments on: how to make you spend more?

By: Sush

Sush — Wed, 25 Jul 2012 07:54:39 +0000

Bala,

I am one of those guy in that category, But I was forced to buy the car(spouse pressure) i didnt have choice, I am unable to use now because my work location is kinda faroff and too streesful to drive on those road because of traffic congestion and also most of the time i work from Home following middle east work days coz of which end up working on saturday and sunday leaving friday as holiday which is of no use to me.

By: pravin

pravin — Tue, 24 Jul 2012 07:51:32 +0000

@krish.
this is because as an NRI,you are a flight risk. lots of software engineers for example, ran up huge unsecured debts and upped and took off the US in the dotcom boom leaving banks holding invalid addresses etc.
i would commend the bank for prudent credit risk assessment.

By: Bala

Bala — Tue, 24 Jul 2012 06:31:29 +0000

Well atleast most of the poeple talking here bought the car and are driving it.
There are a few sample cases who buy a new car and keep it in the shed and never take it out.
If they thought they were saving Rs. 5000 per month on petrol, they could have not just bought the car and saved 5 laks outright.

By: Arun

Arun — Mon, 23 Jul 2012 16:56:37 +0000

Lovely article Subraji.
This clearly shows difference between aspiration/willingness to spend and ability to spend.

By: Arun

Arun — Mon, 23 Jul 2012 16:56:06 +0000

Lovely article Subraji.

This clearly shows difference between aspitation/willingness to spend and ability to spend.

By: krish

krish — Mon, 23 Jul 2012 11:58:43 +0000

I am a NRI customer and recently wanted a credit card from HDFC bank. The bank offered me a credit limit max of 3% of my total investment relationship with the same bank. It insists on issuing the card on collateral basis linked with my FD. I wanted the cc with more limit with no security as it issued to resident indians.

The bank refused. I was shell shocked that my investments would not matter to the Indian bank while issuing the credit card. In our country, I still feel hurt that credit seeking customer on his/her own is always looked down. With no investments in foreign banks, they have issued me a credit card with a credit limit of 1 million INR.

By: subra

subra — Mon, 23 Jul 2012 10:50:59 +0000

Shirish and Mira

when you see people earning Rs. 5-6 L buying a car and people with net-worth of Rs. 20 crores (liquid, over and above one residential house) buying a second hand Maruti 800 – to help in carting things required for a bhajan/ kirtan, you realise that one is spending beyond his means, the other guy just could not care. Also when you see many communities of people – Punjabi, Sindhi, Gujarati, Tamilians, Maharashtrian, …..you tend to form some opinions based on caste and language too!

But it is absolutely true….and ONLY such people realise that spending does not give you pleasure. The feel ‘good’ of knowing that you can buy it is normally enough to make people happy.

By: Shirish

Shirish — Mon, 23 Jul 2012 08:52:14 +0000

Ability to spend NEED not mean Propensity to spend….So True.

By: Ajay

Ajay — Mon, 23 Jul 2012 07:03:45 +0000

I had 4 Lakhs of cash to spare on car.

I had following choices
(1) Buy a 8L sedan on half down payment and half loan
(2) Buy a New 4L car
(3) Buy a 8L used car for price of 4L (bigger the car bigger deprecation).

In the end chose option 2 and bought a Maruti hatch on 100% down payment. Though would admit that I had taken interest free loan of 75K from my office.

If I had chosen option 1 or 3, it would have certainly given me some ego boost but don’t think its worth it.

I don’t know but I feel buying a car on Huge EMI’s(>75%) gives a false sense of affordability.

By: Mira D

Mira D — Mon, 23 Jul 2012 06:43:49 +0000

Subrabhai, I drive a tiny second hand car,just right for Andheri Kurla Rd., and my local repair shops Balanbhai and Chandranbhai do excellent work.

Loved the end line-what a killer– ability to spend does not mean propensity to spend..