Just ensure fiscal discipline from early on to buy what you want. Atleast I did - 12 yrs PQE - Grand Cherokee & Volvo are just perfect for me, for now.
PS: it’s not about showing off, you gotta love those machines.
Instead of feeling obligated, only get it if you really like it otherwise it doesn’t really make much sense when you can get more car for the money in the 20-40L segment.
You can’t take your money with you when you die. Becoming a partner is hard work. Once you have done that, it makes sense to buy a luxury car. If you want to ride in a swift all your life, consider doing something else rather than corporate law.
Look, maybe you’re true but these people you talk about are boomers or max Gen X. That’s not the thinking of Gen Y or Gen Z. In fact, Gen Z peeps would literally sell their kidneys for a Patek.
Its definitely affordable for a T1 partner. Its not like you will outrightly purchase the car. These brands have financing / leasing arrangements which can make these cars affordable for a T1 partner. With a down payment of 10-15 lacs you can easily afford a BMW/Audi/Mercedes etc. We are talking about a monthly EMI of 50-60K which is not a lot tbh (unless you have existing liabilities such as ongoing home loan / personal loan).
My boss (in a PE firm) is at least 10-20x wealthier than the average successful law firm partner and he drives around in cars which won't be considered fancy. We have several domestic individual LPs whose net worth will be in the hundrers of crores and then also don't all drive around in fancy cars, some do and other don't, some also stay in flats - 3 BHKs in societies where you wouldn't expect someone that wealthy staying. I am also friends with a few senior advocates; and some drive German cars and others don't - and these guys would be earning in many times what a successful law firm partner, who is at least a couple of standard deviations away from the mean, would be earning.
No one gives a shit - certainly not your clients and certainly not most professional acquaintances.
Even in Mumbai, our richest city, the roads and traffic are terrible. Why would you drive a fancy car in such bad roads and at speeds that rarely exceed 20 kmph?
A certain Noida T1 partner drives to office in a modest yet classy SUV. I thought that was his main car. Ran into him at an event one evening and he was driving an Aston Martin. Now thats some classy shit that shines above the mercs, bimmers and audis.
Sorry if I sound harsh, but if you earn 1 cr pa and you drive a Honda City, you are a cheapskate. An entry-level German luxury car costs 50 lakhs. That’s so easily affordable for partners.
The comments in this thread are so unidimensional. Yes, a newly made partner 8-10 yrs PQE) can afford a luxury car, based on their salary. But can the person afford to purchase their own house and also purchase a luxury car. Most likely not, unless their family is rich. Not every partner who becomes a partner based on their hard work, comes from a rich background, with a house already in Delhi/ Mumbai. Buying a house in these cities is much more expensive than a luxury car. Personally for me, buying a decent house > a luxury car that starts depreciating in value the moment it is sold.
Please don't be that guy who still drives some Creta or some such beyond SA3/PA. That's the time to upgrade. This Creta/Kia Seltos bracked is only an Associate/junior SA level car.
My suggestion for senior PAs/junior Partners is to consider buying the Innova HyCross. It's sober enough to be an Innova, and plush enough to be way more comfortable than any entry level German luxury car.
It’s a generational thing. Gen Z prefers to spend on Instagrammable YOLO experiences like adventure holidays. Gen Z also support Greta Thunberg and boycott cars in favour of CNG cabs or Metro.
I think a Honda City or Creta is fine. But people will certainly look down in you if you buy a Swift or Alto or Kwid. You need to maintain at least some class distinction with others when you become a partner! A Swift or Alto with a 1 cr salary??? Really???
The disputes head of CAM Mumbai who is an equity partner and next in command to the MP travels in an innova for a client meeting. That should answer your question.
Why is this getting downvoted. If someone has decent savings of previous 10 years and earning around 1 cr a year why the fuck can't he buy a 50 lakh car if he wants to? YOLO and cars are definitely one of the things you live for amd have worked for the past decade. And it's not just about someone's love for cars, at 1 cr per annum (or even 85 lpa), provided you have saved well for the last 10 years, you can easily and by that I mean in a financially prudent way buy a 50 L car. You can further down your risks by combining a decent mix of downpayment and loan. Loans exist so that You don't need to exhaust your bank balance straight up. If you have a decent cibil score you will get good rates too. So it is not a question of whether a Partner can it is a question of should a Partner not (assuming a car of 50 to 60 L)
Nope, brother. It is not economically viable for a salaried law firm partner to buy a 50 lakh car. In a city like Mumbai, 12 years PQE gives you the opportunity to save a corpus of 1.5 crores at max, provided you compromise a lot on luxurious lifestyle and foreign vacations. Spending 50 lakhs from that savings is utterly stupid and beyond recovery in a place like Mumbai where you’ll have family responsibilities and a home to purchase. Most salaried partners start at 80LPA which comes down to around 65-70LPA post taxes which is not enough to cover the EMI payments for such cars. Therefore, based on the general trend in lawfirms, Creta/Seltos/Verna is the most preferred choice among salaried partners with few exceptions going for a higher segment like Harrier, XUV, Thar. It is only the equity partners who can barely manage to afford an entry-level luxury car. It is not a norm in lawfirms for partners to drive around in luxury cars. Sorry to burst your bubble kids.
The average middle class boy dreams of owning a big penthouse, driving a BMW and marrying a hot girl. Of these 3, the BMW is probably the easiest to get.
Mumbai based. I am far from being a partner and my budgeting allows me to only spend 25% of my fixed monthly.
I have a rental tie-up with a neighboring retailer who supplies cars and driver as needed. For regular days I use Uber. For travel and meeting heavy days, I have my guy supply cars with drivers.
Persons who make partners at law firms, quite often, have imbibed the necessary sense of financial and social wisdom to ascertain whether or not they would want to make a purchase in terms as described in OP's question. OP, you seem to be young enough, and hence, have not likely attained enough experience in the profession and in life to be made partner yet. When time is ripe, you'll ideally have gained enough sense and wisdom to know if you need to make such a purchase.
Yes, otherwise you are immediately kicked out by the Managing Partner. If any partner at my firm comes in a shabby car, I'd personally take a hammer and smash the hell out of the car.
Yes, I agree. You can’t be attending meetings and conferences and show up in a Swift. That makes you look really cheap. You might as well stick to being an associate if that’s your attitude!
I will rather spend the money elsewhere. Indian metro traffic is hell. Roads won't be cleared for you if you got a Merc or BMW. And I certainly don't want to buy a something for 50lakhs and keep it unused in my car porch.
Bhai purani savings bhi to hogi agar Partner hai wo toh. Assuming someone made partner in 10 to 12 years PQE he/she may have say 2 to 4 crore balance whey cant he buy a 50 lakh car with half downpayment and half loan
Lol senior partner had a XUV 700 in JSA. And one of the salaried partners came in Honda City with her driver. Partners are just upper middle class section of society, not super rich people buying luxury cars. This is especially true for Mumbai where the cost of living is so high. Also, if we apply the 20-4-10 rule, monthly EMI comes around 97k-1lakh. That means you have to have a monthly income of atleast 10 lakhs, which is 1.2 crores pa. A newly salaried partners comes around 80 lakhs. So, he cannot afford it. However, an equity partner may afford a luxury car.
I think it’s pretty basic and everyone does it. It’s important to fit in. People here will tell you no don’t succumb to the peer pressure. It’s easy to say these things on an anonymous forum. But in the real world these things matter. Don’t show up to a client meeting or a fancy club in your swift or worse an entry level SUV. It just feels so cheap as if you are an imposter in the big boys (and girls) club. Please have some self respect and atleast get an entry level luxury car.
By "compulsory" I mean peer and boss pressure, to the extent that you will be isolated and looked down upon if you don't. The cheapest BMW/Merc/Audi sedan is probably around 50 lakhs. That's certainly affordable for a partner, but what if you would rather spend the money elsewhere?
Innova Hycross top model is 35.
Fortuner starts at 45.
50 Lakhs budget is on the lower end
PS: it’s not about showing off, you gotta love those machines.
My boss (in a PE firm) is at least 10-20x wealthier than the average successful law firm partner and he drives around in cars which won't be considered fancy. We have several domestic individual LPs whose net worth will be in the hundrers of crores and then also don't all drive around in fancy cars, some do and other don't, some also stay in flats - 3 BHKs in societies where you wouldn't expect someone that wealthy staying. I am also friends with a few senior advocates; and some drive German cars and others don't - and these guys would be earning in many times what a successful law firm partner, who is at least a couple of standard deviations away from the mean, would be earning.
No one gives a shit - certainly not your clients and certainly not most professional acquaintances.
I have a rental tie-up with a neighboring retailer who supplies cars and driver as needed. For regular days I use Uber. For travel and meeting heavy days, I have my guy supply cars with drivers.
Confidence doesn't come from a car. It comes from within.
But this may not apply in NCR where people are generally more flashy and judgy.