Note : Please forgive me for my bad English and feel free to anyone to correct mistakes.
Background : I am working as a Software Engineer is Sri Lanka. My monthly salary is about $400 and may increase to $800-900$ with three years. There is no additional income. For living I need around 300$ per month.
Prices of cars in my country [Update : Vehicles are too expensive because of government taxes, it is too high. For some cars it is more than 500%] :
- Toyota Corolla 2017 : Around $60,000
- Toyota Car (build in 1995-2000) : Around $15,000
- Indian Car like Alto : Around $15,000
- Toyota/ Nissan car (Build in 1980-1990) : Around $7500
So even to buy a 20 years old Japanese car or Indian Alto the price is nearly 35 times of my current salary.
But generally most of people like me (Like bankers, engineers) have cars. I don't know how they afford it.
I also at some point in time looking to buy a land and build house.
At the same time I really like a Car and it can save most of my time and it will really useful.
But my question is, getting a loan in young age (My age is 25) to buy a car (non-investment) ... Is it a right decision or will create issues financially in future?
Update : I have forget to mention that I have already 3000$ saving and if it is needed I can reduce my living cost to 200$ per month (It is hard, but possible).