Assessing Car Affordability on a ₹7–9 Lakh Salary: Insights from AI
I asked ChatGPT and Gemini what car I can afford on a ₹7–9 lakh salary. Their answer was a reality check
Mint
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Consulting AI chatbots ChatGPT and Gemini revealed that individuals earning ₹7–9 lakh annually should be cautious about car purchases. Both AIs advised against buying new cars, emphasizing the financial burden and suggesting alternatives like used cars or public transport to avoid becoming 'car-poor.'
- 01AI chatbots recommend a strict budget for car expenses, capping it at 10-15% of take-home pay.
- 02ChatGPT suggests avoiding new cars to prevent financial strain, recommending used vehicles instead.
- 03Gemini warns that new cars exceed affordability limits for this income bracket.
- 04Both AIs highlight hidden costs of car ownership, including depreciation and maintenance.
- 05Investing saved funds from not buying a car could lead to better financial stability.
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Consulting AI chatbots ChatGPT and Gemini about car affordability on a salary of ₹7–9 lakh per annum provided valuable insights. ChatGPT suggested a maximum automotive expense cap of 10-15% of a median monthly take-home pay of around ₹55,000, translating to a budget of ₹5,500 to ₹8,250 for all car-related expenses. This leaves a minimal EMI capacity of ₹2,000 to ₹4,000, supporting a loan of just ₹1.5 lakh to ₹2 lakh. It recommended avoiding new cars and instead opting for reliable used vehicles priced between ₹3 lakh and ₹5 lakh. On the other hand, Gemini, using a slightly higher take-home pay of ₹62,000, calculated a total monthly budget of ₹9,300, with operating costs consuming ₹5,700. It cautioned that even basic new cars exceed affordability, leading to potential financial strain. Both AIs emphasized the importance of considering hidden costs, such as depreciation and maintenance, and the opportunity cost of investing instead of purchasing a car.
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This guidance can help individuals make informed financial decisions about car ownership, potentially leading to better savings and investment opportunities.
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