New Delhi: Planning to buy a luxury car? A leading chartered accountant has issued a stark warning about the hidden costs of owning one. CA Nitin Kaushik shared on social media platform X that purchasing a ₹50 lakh luxury car is not a lifestyle upgrade—it is a money drain. According to him, the total monthly expenditure on such a car can exceed ₹1 lakh, potentially costing owners millions over time, while the same money could have been invested to generate wealth.
The True Cost of a ₹50 Lakh Car
Kaushik explained the financial math behind a ₹50 lakh car. The moment it leaves the showroom, it loses nearly 20% of its value. Add to this the costs of EMIs, expensive insurance, and regular maintenance, and the monthly expenditure quickly exceeds ₹1 lakh—amounting to ₹12 lakh a year. He describes this not just as a cost, but as wasted wealth.
How Wealth Could Be Built Instead
According to Kaushik, the same ₹12 lakh annual expense could be strategically invested in assets like land in developing corridor areas, potentially earning 25% annual returns. At this rate, over 10 years, the investment could grow into a ₹4.5 crore portfolio. In contrast, the luxury car would depreciate sharply, potentially dropping to just ₹8 lakh after several years.
Emotional Purchase or Financial Freedom?
Kaushik questioned whether people are sacrificing a debt-free, secure future for the temporary shine and brand value of a new car. He noted that even high-income earners often underestimate how much wealth they lose over time. “When you realize that the cost of a car has eaten into your financial freedom for the next 20 years, the sense of success diminishes,” he warned.
His cautionary message serves as a reminder that financial prudence can outweigh instant gratification, and that long-term wealth creation often requires resisting emotional purchases.
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