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.
Why does Kilhor say people should buy cars?
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.
How much should you spend on buying a car?
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.
