While your annual pay package is only one part, several other factors could influence your vehicle budget – existing loans, monthly fixed expenses, savings, etc. Without knowing which, it would be difficult to give you a definitive reply. Still, we’d advise you to keep your maximum monthly outflow towards your vehicle EMI limited to 20-25% (approximately 11,000-12,000) of your net monthly income. This would mean your loan amount must not exceed approximately Rs 5.50 lakh over a period of 5 years.
Since you’re open to used cars, we’d advise you to consider the newest possible car you can get for the money. Look for something fuel-efficient, easy to maintain, and with a good reputation for reliability. A hatchback will be the most convenient in the city.
Some used examples you could consider are the Maruti Baleno CVT and Honda Jazz CVT. Also, while buying a used car, ensure you buy your car from a trusted source such as Spinny, which also provides a warranty, for added peace of mind.