Archive · 31 Oct 2025
India's Middle Class Spending Big on Luxury Cars on Lower Salaries
Imagine someone earning a good salary, like about ₹2 lakh every month, which is quite a lot!
But instead of saving or buying a reasonably priced car, they are buying a super expensive car worth ₹70-80 lakh.
They put down a big chunk of money as a down payment, but then they have to pay a very large monthly payment for seven years, almost ₹1.2 lakh each month.
This is more than half of what they earn!
Experts say this is a worrying trend because after paying for the car, there's not much left for rent, food, or other important things.
It seems like people are buying these fancy cars more to impress others than because they can truly afford them.
Indian salaried professionals earning ₹2 lakh monthly are reportedly buying luxury cars worth ₹70-80 lakh.
These purchases involve significant down payments and EMIs that consume up to 60% of monthly income.
Financial experts highlight this trend as a potential sign of living beyond one's means.
Social media and the perception of luxury cars equating to success are cited as driving factors.
Concerns are raised about the affordability after essential expenses and the rapid depreciation of luxury vehicles.
- Who
- High-earning salaried professionals in India
- What
- Purchasing luxury cars significantly beyond their apparent financial capacity.
- When
- Currently a growing trend.
- Where
- India, with mention of Bangalore.
- Why
- Desire to project an image of success, influenced by social media trends.
Financial Prudence
Aspirational Buying
Affordability
Financial Prudence
Purchasing luxury cars with a significant portion of monthly income (up to 60%) is financially irresponsible, especially after accounting for other living expenses and car depreciation.
Aspirational Buying
While the numbers may seem high, some buyers might have other sources of income, family wealth, or strategic financial planning that allows for such purchases.
Motivation for Purchase
Financial Prudence
The primary motivation for buying such expensive cars on lower salaries appears to be social signaling and projecting an image of success, driven by external influences like social media.
Aspirational Buying
Owning a car can be a practical necessity in certain cities like Bangalore for convenience and time-saving, and for some, a luxury car might represent a desired lifestyle or a reward for hard work.
Definition of Wealth
Financial Prudence
True wealth is defined by financial freedom, peace of mind, and growing assets, not by the acquisition of depreciating luxury items.
Aspirational Buying
For some, a luxury car can be an aspirational purchase that fuels motivation and represents a tangible achievement or status symbol.
- Monthly Salary
- ₹2 lakh
- Car Price
- ₹70-80 lakh
- Down Payment
- ₹7-9 lakh
- Monthly EMI
- ₹1.2 lakh
- Financing Period
- 7 years
- Interest Rate
- 9%