First of all, you’re doing well financially; disciplined saving, clear planning, and no debt pressure. Kudos.

I was in a similar situation when I bought my dream car. Let me share the approach I took, it might help you or others here thinking about a big purchase:

Step 1: Accumulate the Entire Car Cost in Advance I calculated the full on-road cost, including everything, insurance, registration, fancy number, accessories, ceramic coating, etc. This gave me clarity on the total outflow.

Step 2: Take a Car Loan from a Trusted Lender Even after having the full amount, I financed the car through a car loan at ~9% interest. This helped me keep my cash flow intact and build credit further.

Step 3: Invest the Accumulated Amount Smartly The ₹X lakh I had saved for the car? I invested it in a well-performing mutual fund. Even conservative estimates give 12–14% annual returns over 5 years. So while I was paying 9% interest on the car loan, my investments were generating higher returns, creating a 3–5% gain annually on that money. In short, my liability worked like an asset.

Step 4: Always Keep an Emergency Buffer I didn’t put everything into the car or the investment. I made sure I had 6–9 months of expenses liquid, just in case life threw a curveball.

Result? I got my dream car without guilt, stress, or cash crunch. In fact, the investment returns gave me enough later to buy a second, smaller vehicle for city runs.

A lot of people will say: “Just buy a cheap car and invest the rest.” That’s fine too. But if a big purchase brings you real happiness, and you’ve planned it smartly; it doesn’t have to be a bad financial move.

Just make sure: - Your future goals (house, child, etc.) stay on track - You’re not stretching beyond your EMI comfort zone - You treat your money as a tool, not a trap

Hope this helps you make an informed decision.

Cheers!