UPSC educator rejects 'depreciating asset' tag for cars, advises buying at over ₹1L/month income to save up to 730 hours

UPSC educator Amit Kilhor has challenged the popular financial advice against buying cars on the grounds that they are depreciating assets, arguing that automobiles should be viewed as functional purchases rather than investments.

He has advised people earning more than ₹1 lakh a month to consider buying a car, claiming that owning one could save between 250 and 700 hours annually by reducing time spent on commuting.

Kilhor shared his views in response to an X post by user Suraj Kumar Talreja, who said he would never take a car loan because vehicles lose value over time, while interest payments, fuel, insurance and maintenance add to the financial burden.

Talreja mentioned that car purchases should be driven by convenience rather than made at the cost of financial freedom.

Responding to the post, Kilhor said the argument that cars are depreciating assets overlooks their practical utility. He maintained that people do not buy vehicles expecting to sell them at a profit but to make everyday travel easier and save time.

“Buy a car moment anyone starts earning more than 1 lakh per month. Car is a deprecating asset is the stupidest sentence in finance. phone, food, clothes, laptops, ACs, water bottles, movies, literally everything you buy is a deprecating asset. You yourself, your body is a deprecating asset. Car is the best investment one can make for oneself. Automobile is the cornerstone of modern civilization. Get it asap,” his post on X read.

In an Instagram video, Kilhor explained that describing a car as a depreciating asset and using that as a reason against purchasing one amounted to a category error. According to him, a vehicle is primarily bought for its utility, not to generate returns through resale.

He compared cars with everyday purchases such as mobile phones, air conditioners, clothes, bags and shoes, saying their monetary value also falls after purchase. However, people continue to buy these products because they serve practical purposes.

Kilhor said that investment products such as shares, gold and real estate are different from items purchased for everyday use. He argued that a car should be evaluated on the convenience and time it offers rather than only on its resale value.

While encouraging people to purchase cars, Kilhor cautioned against choosing a vehicle beyond their financial means. He suggested using half of one's annual income as a broad benchmark for deciding the car's purchase price, while saying younger buyers could consider spending somewhat more.

He also offered examples to explain why buyers should match their vehicle choices to their earnings. Someone earning ₹12 lakh annually, he said, should consider a more affordable model such as a Maruti Suzuki Baleno instead of stretching their budget for a Mahindra Scorpio. Similarly, a person earning ₹30 lakh should consider a Toyota rather than buying an Audi.

Kilhor also addressed concerns about paying interest on car loans. Citing an example of a ₹10 lakh vehicle, he said the interest cost could be around ₹80,000 over five years, which he considered reasonable given the utility a car provides.

He encouraged people to calculate the economic value of the time saved, arguing that the benefit could outweigh the annual cost of owning a vehicle.

Using a ₹10 lakh car as an example, he said that even if its resale value fell to ₹5 lakh after five years, the depreciation would amount to around ₹1 lakh annually. He stated that buyers should consider this expense alongside the convenience, independence and time saved through personal mobility.

However, Kilhor cautioned buyers against spending beyond their means, stressing that they should choose a car that fits their financial capacity. His broader argument was that depreciation alone should not determine whether a car is worth buying, particularly when it serves an important everyday purpose.

Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X

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HomeMoneyPersonal FinanceUPSC educator rejects 'depreciating asset' tag for cars, advises buying at over ₹1L/month income to save up to 730 hours

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