Can I afford a ₹12.0 L car on ₹1.5 L a month?

Yes, but it is tight.

• Breaks the rule on 21% of income on transport.
• At 67% of a year's take-home, this is well past the half-income line.
• Buffer drops to 1.7 months, under the three-month floor.

The numbers

At ₹1.5 L a month you would end up with ₹41.45 Cr by 60 with this car, against ₹45.30 Cr without it.

What this breaks

• The 20/4/10 rule

  Breaks the rule on 21% of income on transport.

  Standard auto-finance guidance: 20% down, 4 years max, 10% of income

• Vehicles under half your income

  At 67% of a year's take-home, this is well past the half-income line.

  Dave Ramsey's rule on total vehicle value

• Three to six months of buffer

  Buffer drops to 1.7 months, under the three-month floor.

  Bogleheads and Dave Ramsey's Baby Steps 1 and 3

What this page assumed

You told us one number. Everything else had to be assumed, so here is exactly what was taken for granted:

• Monthly expenses set to 45% of take-home
• Six months of expenses held as an emergency buffer
• One year of take-home already invested
• No existing loan EMIs, and age 32

The same car on a different salary

A different car on ₹1.5 L a month