NIFTY1! Is Buying a Car in India Worth It? Here’s the Real Loss (With Actual Numbers)People don’t realise how expensive a “₹10 lakh car” actually is in India.
When you calculate every real cost, it becomes one of the biggest wealth-destroying decisions for the middle class.
Here’s the true 5-year calculation for a ₹10 lakh ex-showroom car:
1. On-Road Price = ₹12,00,000
Taxes + insurance + registration push the price up by 20%.
2. Loan Interest (5 yrs @ 10.5%) = ₹2,30,000
You lose 23% extra just to the bank.
3. Depreciation (5 years) = ₹6–6.5 lakh lost
₹12 lakh car → worth only ₹5.5–6 lakh.
This is a 50–55% value destruction.
4. Fuel Cost (1,000 km/month) = ₹4,40,000
Mileage: 15 km/l
Fuel: ₹110/litre
₹2,00,000+ of this is just fuel taxes.
5. Insurance (5 years) = ₹1,35,000
That’s 11–12% of the car’s value paid and not recovered.
6. Maintenance + Repairs = ₹1,00,000–1,20,000
Poor Indian roads add 15–25% extra maintenance.
This is another 10% loss.
7. Tyres (2 replacements) = ₹50,000
Standard wear on Indian roads = 4–5% loss.
8. Parking Costs (5 years) = ₹48,000
Another 4–5% quietly gone.
9. Traffic Time Loss = ₹1,80,000
120 hours/year × 5 years = 600 hours wasted.
Value @ ₹300/hour = ₹1.8 lakh
= 15–18% economic loss.
10. Opportunity Cost (Not Investing the Money) = ₹5,69,000
If the same ₹12 lakh went into Nifty @ 8% →
You lose ₹5.7 lakh of growth.
That’s 45–50% extra loss.
⭐ TOTAL REAL OUTFLOW OVER 5 YEARS
= Purchase + Loan + Running + Lost Growth
= ₹14,30,000 (car + loan)
₹7,83,000 (fuel, maintenance, insurance, tyres, parking)
₹5,69,000 (opportunity loss)
👉 Actual money spent = ₹27,82,000
⭐ RESALE VALUE AFTER 5 YEARS
₹5.5–6 lakh
🔥 NET ACTUAL LOSS
₹27.82 lakh − ₹5.8 lakh
👉 ₹22 lakh real loss
📉 Percentage Breakdown
Category % Loss
Loan interest 23%
Depreciation 50–55%
Fuel taxes 45–55% of fuel cost
Insurance 11–12%
Maintenance 10%
Parking 4–5%
Traffic time 15–18%
Opportunity cost 45–50%
Total net wealth destruction = 180–220% of the car’s value.
For every ₹10 lakh car, you burn ₹22 lakh in 5 years.
Final Reality
A “₹10 lakh” car is actually a
₹28 lakh liability
that returns only ₹6 lakh at the end.
Everything else — 22 lakh rupees — is gone forever.
