What % of NET monthly salary do you spend on your car

[walm]

B'stard Child said:

I don't include it - I'm not ignoring it - yes I know what it is roughly but I don't regard it as an outgoing

Perhaps now you see why I choose to ignore it - it has no impact to me until I sell, trade or scrap the car and I really don't do that very often.

No.
You are 100% wrong.
You just spent £1,000 a year on owning a car; a cost that you are completely ignoring for no reason.
The numbers are right there in front of you.

Honestly, this isn't up for debate.
Spending £15k once every 15 years is exactly the same as spending £1,000 a year. (Ignoring the time value of money etc...)

If someone got an interest free loan for £15k which they paid off over 15 years, and the car they bought was worthless at the end, please get out your calculator and tell me what their annual spend on depreciation was!!?

[gizlaroc]

B'stard Child said:

I don't include it - I'm not ignoring it - yes I know what it is roughly but I don't regard it as an outgoing

I'll treat one of my other cars the same way

Lotus Carlton - purchased in 2000 for 15K

2001 Value £12000
2002 Value £9600
2003 Value £7680
2004 Value £6144
2005 Value £4915
2006 Value £3932
2007 Value £3146
2008 Value £2517
2009 Value £2013
2010 Value £1611
2011 Value £1288
2012 Value £1031
2013 Value £825
2014 Value £660

Current Market value may be a little different - perhaps now you see why I choose to ignore it - it has no impact to me until I sell, trade or scrap the car and I really don't do that very often.

Hey? That makes no sense at all.

You can't not include it, it is a cost.

[vanordinaire]

lawless50 said:

How much depreciation now?

You realise that's only 3 figs? (6 half figs)

[gizlaroc]

£50K? £100K? Not like we are talking any big figs, he probably meant that his company car allowance was £100k a year anyway, surely he wouldn't be muddling through on £100k salary?

[CS Garth]

lawless50 said:

vanordinaire said:

You realise that's only 3 figs? (6 half figs)

That's because they are a figment of my imagination, the other 3 are in a safe place (figuratively speaking).

Back on topic, I bought my current car for £3,700 (4 figs) in May last year. It's currently worth about £2,900, so £800 depreciation in 12 months, or £66.66 per month. A surprisingly small percentage of my NET salary. Go figure.

For fun, I put my details into WBAC and they came up with £1715 (are they figgin serious?).

Honestly, I don't give a fig...


(sorry)

The crack smoking community appear to now have found pistonheads

[walm]

CS Garth said:

The crack smoking community appear to now have found pistonheads

He's still smoking less than the guy who thinks that because you buy a car infrequently it doesn't really cost anything.

[CS Garth]

walm said:

CS Garth said:

The crack smoking community appear to now have found pistonheads

He's still smoking less than the guy who thinks that because you buy a car infrequently it doesn't really cost anything.

Yes - the basic concepts of accounting seem to have passed him by. Buy something for 20 grand. Pretend it's still worth 20 grand until you sell it ergo it has cost zilch.

On that basis I will value every item in my house at what they costs and not what it is worth. I'll also include every item of food bought and consumed as I haven't sold that either

[B'stard Child]

gizlaroc said:

B'stard Child said:

I don't include it - I'm not ignoring it - yes I know what it is roughly but I don't regard it as an outgoing

I'll treat one of my other cars the same way

Lotus Carlton - purchased in 2000 for 15K

2001 Value £12000
2002 Value £9600
2003 Value £7680
2004 Value £6144
2005 Value £4915
2006 Value £3932
2007 Value £3146
2008 Value £2517
2009 Value £2013
2010 Value £1611
2011 Value £1288
2012 Value £1031
2013 Value £825
2014 Value £660

Current Market value may be a little different - perhaps now you see why I choose to ignore it - it has no impact to me until I sell, trade or scrap the car and I really don't do that very often.

Hey? That makes no sense at all.

You can't not include it, it is a cost.

If I sold it right now it would sell for somewhere around £25,000

So not a cost af all - so it offsets any depreciation I get on my other cars so I ignore depreciation.

Really can't see anything wrong with that.

[B'stard Child]

foxsasha said:

B'stard Child said:

I don't include it - I'm not ignoring it - yes I know what it is roughly but I don't regard it as an outgoing

I'll treat one of my other cars the same way

Lotus Carlton - purchased in 2000 for 15K

2001 Value £12000
2002 Value £9600
2003 Value £7680
2004 Value £6144
2005 Value £4915
2006 Value £3932
2007 Value £3146
2008 Value £2517
2009 Value £2013
2010 Value £1611
2011 Value £1288
2012 Value £1031
2013 Value £825
2014 Value £660

Current Market value may be a little different - perhaps now you see why I choose to ignore it - it has no impact to me until I sell, trade or scrap the car and I really don't do that very often.

The thread is about ownership costs, of you keep the car until it has no value then the original purchase price is part of that cost.

And if it's not a depreciating asset where is the cost?

[B'stard Child]

walm said:

B'stard Child said:

I don't include it - I'm not ignoring it - yes I know what it is roughly but I don't regard it as an outgoing

Perhaps now you see why I choose to ignore it - it has no impact to me until I sell, trade or scrap the car and I really don't do that very often.

No.
You are 100% wrong.
You just spent £1,000 a year on owning a car; a cost that you are completely ignoring for no reason.
The numbers are right there in front of you.

Honestly, this isn't up for debate.
Spending £15k once every 15 years is exactly the same as spending £1,000 a year. (Ignoring the time value of money etc...)

If someone got an interest free loan for £15k which they paid off over 15 years, and the car they bought was worthless at the end, please get out your calculator and tell me what their annual spend on depreciation was!!?

In summary I have a few cars some depreciate and one appreciates, the losses on the ones that depreciate are balanced off by one that does. As a result I ignore depreciation because it's not a cost to me. When it starts being a cost I'll include it.

[B'stard Child]

walm said:

CS Garth said:

The crack smoking community appear to now have found pistonheads

He's still smoking less than the guy who thinks that because you buy a car infrequently it doesn't really cost anything.

Puffing on my crack pipe here

[nikaiyo2]

Have we seen the OP before?

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Is it Stinkytanko coming back to impres us all again?

[walm]

B'stard Child said:

If I sold it right now it would sell for somewhere around £25,000

So not a cost af all - so it offsets any depreciation I get on my other cars so I ignore depreciation.

Really can't see anything wrong with that.

I missed that the car value you wrote wasn't the actual car value.
I did think that was quite cheap for a Lotus Carlton!!
Sorry!

[B'stard Child]

walm said:

B'stard Child said:

If I sold it right now it would sell for somewhere around £25,000

So not a cost af all - so it offsets any depreciation I get on my other cars so I ignore depreciation.

Really can't see anything wrong with that.

I missed that the car value you wrote wasn't the actual car value.
I did think that was quite cheap for a Lotus Carlton!!
Sorry!

Not a problem - I obviously made a carpy job of explaining why I'm ignoring depreciation - no harm done and I've put the crack pipe down before I get addicted to something else other than cars

[daveofedinburgh]

Time for some (very shaky) man maths;

-Qualify as an Optometrist Sept 2017

-Once fully qualified can expect to invoice for £250 min for a weekday, up to £450 for a Sat/ Sun

-Lets say I'm a lazy f*cker and work 5 days per week Mon-Fri, no weekends (probably won't happen, but I can dream right?)

-£250 x 5 = £1250 per week

-Assume 4 weeks holiday per year, £1250 x 48 = £60000 per year

-Having never been self-employed, Ive no idea how much of my total earnings I can expect to pay in tax, but I'll (perhaps naïvely) assume it's around 25% = a conservative take-home of £45000

-Spend (invest?) £22500 on a manual 997 911, as I can't imagine there'll be any ~£20K ones left by the time I qualify

-Pay back £7425 each year over three years (interest free, as I'm very privileged to have a father with afew quid spare)

-£7425 = 16.5% of £45000 (annual), £618.75 = 16.5% of £3750 (monthly)

-16.5% makes no allowance whatsoever for insuring/ maintaining/ repairing a 997, which admittedly could/ probably will mean eye-watering bills, possibly with alarming regularity

-Now that I've actually done the very shaky man-maths, 16.5% seems like a very high number, particularly given that I've made no allowance for running costs etc. Maybe time to admit that I won't be able to afford a 997 for afew years yet (or become a mature, hard-working self-employed person and drag that % number down by working eg. every other Saturday... ugh)

-Come crashing back down to earth and acknowledge that a 987 Boxster/ Cayman will result in a more palatable/ justifiable '% of NET monthly salary' number for my relatively humble future earnings

-Become sad, because a 911 is what I really want

-End up wondering if the (by late 2017 ~£15K for a good 'un) 996 might be my best option if I'm really gonna do this 911 thing

-Conclude that any of the Porsches I've mentioned will need the price of a cheap DD/ shed factoring in to them anyway, and that it's too late/ I've had too much Rioja to be ars*d working out a more accurate number

• Buys yet another mk1 MX5*

[swisstoni]

Oh to be young ....

[hora]

HJMS123 said:

Granfondo said:

A few boys I know in the oil industry were making £20k pm.

Fixed for you

Just shows how much money was/is knocking about in selling the stuff to us consumers even when it's heavily taxed.

[hora]

hora said:

HJMS123 said:

Granfondo said:

A few boys I know in the oil industry were making £20k pm.

Fixed for you

Just shows how much money was/is knocking about in selling the stuff to us consumers even when it's heavily taxed.

On topic my car owes me nothing. No monthly repayments, no loan. It's abit bland looking but for once I don't care considering £200 a month isn't going out of my account monthly.

[gizlaroc]

daveofedinburgh said:

Time for some (very shaky) man maths;

.....stuff

£60k is around £3500 a month.

Not thought about a pension?

Say you are happy for a more moderate lifestyle when you retire, if you start paying in at 25 with a view to retire at 65, you will need to pay a fair bit more than you think in.

Have a go with this, it may just shock you....

https://www.standardlife.co.uk/c1/guides-and-calcu...


I think this is what some are saying about people living beyond their means, they simply aren't considering their retirement.

[walm]

daveofedinburgh said:

Time for some (very shaky) man maths;

-Qualify as an Optometrist Sept 2017

-Once fully qualified can expect to invoice for £250 min for a weekday, up to £450 for a Sat/ Sun

-Lets say I'm a lazy f*cker and work 5 days per week Mon-Fri, no weekends (probably won't happen, but I can dream right?)

-£250 x 5 = £1250 per week

-Assume 4 weeks holiday per year, £1250 x 48 = £60000 per year

-Having never been self-employed, Ive no idea how much of my total earnings I can expect to pay in tax, but I'll (perhaps naïvely) assume it's around 25% = a conservative take-home of £45000

-Spend (invest?) £22500 on a manual 997 911, as I can't imagine there'll be any ~£20K ones left by the time I qualify

-Pay back £7425 each year over three years (interest free, as I'm very privileged to have a father with afew quid spare)

-£7425 = 16.5% of £45000 (annual), £618.75 = 16.5% of £3750 (monthly)

-16.5% makes no allowance whatsoever for insuring/ maintaining/ repairing a 997, which admittedly could/ probably will mean eye-watering bills, possibly with alarming regularity

-Now that I've actually done the very shaky man-maths, 16.5% seems like a very high number, particularly given that I've made no allowance for running costs etc. Maybe time to admit that I won't be able to afford a 997 for afew years yet (or become a mature, hard-working self-employed person and drag that % number down by working eg. every other Saturday... ugh)

-Come crashing back down to earth and acknowledge that a 987 Boxster/ Cayman will result in a more palatable/ justifiable '% of NET monthly salary' number for my relatively humble future earnings

-Become sad, because a 911 is what I really want

-End up wondering if the (by late 2017 ~£15K for a good 'un) 996 might be my best option if I'm really gonna do this 911 thing

-Conclude that any of the Porsches I've mentioned will need the price of a cheap DD/ shed factoring in to them anyway, and that it's too late/ I've had too much Rioja to be ars*d working out a more accurate number

• Buys yet another mk1 MX5*

You have done the opposite of ignore the depreciation.
You have assumed 33% a year, which is nuts.

You need to work out what the 911 is worth in three years once you have paid off the interest free loan.

Say what, £15k worst case (depending on mileage).
So you will likely see annual depreciation of £2,500-3,500.
That's what it costs you. ~7% of net income on depreciation.


To run it, maybe £3-4K with bork potential NOT included (just google bore scoring, or rather don't!).

Don't you have any expenses as an optometrist?