What % of NET monthly salary do you spend on your car
Discussion
I am simply amazed at the number of new cars bought in this country vs the average salary.
Just wanted to see how much people spend on their car purchase as a % of their NET monthly salary.
I personally could not justify anything greater than 10% of my net monthly salary and given I earn 6 figs doesn't buy me much (especially as I would never lease but only consider HP if I did go the finance route).
Don't you folks feel it is wrong to spend so much on a car?
Don't you parents of these young kids who buy new cars on finance give them a good kick in when they even contemplate such practices?
Just wanted to see how much people spend on their car purchase as a % of their NET monthly salary.
I personally could not justify anything greater than 10% of my net monthly salary and given I earn 6 figs doesn't buy me much (especially as I would never lease but only consider HP if I did go the finance route).
Don't you folks feel it is wrong to spend so much on a car?
Don't you parents of these young kids who buy new cars on finance give them a good kick in when they even contemplate such practices?
Currently - almost nothing, across 2 cars. I run each for less than £1k a year, inc insurance, VED and depreciation/repairs.
In the past - more. When I first started work I took out HP on £5k worth of Fiesta, payemnts maybe 20% of monthly salary. Insurance another 10%. Reasonable enough at the time as I was living in shared houses and I needed a car for work across multiple sites.
In the past - more. When I first started work I took out HP on £5k worth of Fiesta, payemnts maybe 20% of monthly salary. Insurance another 10%. Reasonable enough at the time as I was living in shared houses and I needed a car for work across multiple sites.
I agree but all it takes is ( if you are an idiot car owner ) a few big bills on a 6k car and you are well behind.
(This is not my way but probably quite common)
A ) Buy some cheap for the year car (with no real research) drive to death between MOTs. Do *not* at any point spend any preventative money or find a trustworthy garage. So accumualate a couple of grands worth of issues by lack of spending 80 pcm on bits averaged across the 2 years. Take car to dealer when something has made a noise or light so annoying that it cannot be ignored. The garage then tries to take you for £3k most if which is advisable and a service is overdue. Moan about how "rubbish Car X is to run". Cry and then sell for pennies or pay for it to be done and the "get rid of it" and Cry.
B ) Go and buy a car on £250 pcm and have no issues and maybe some free insurance. Done. Even if that is 15-20% of Net salary its done and fixed. No nasty surprises and they are in a new car with emm peee gee and an IPod connector.
I think it is important not to equate 2nd hand car ownership that most on here would consider compare to a numpty. Thats why it starts to appeal. I would prefer a 4-6k A6 Quattro and some bills over a lease but I know how to deal with it mentally and financially. The depreciation to them is invisible in the "car loan"
(This is not my way but probably quite common)
A ) Buy some cheap for the year car (with no real research) drive to death between MOTs. Do *not* at any point spend any preventative money or find a trustworthy garage. So accumualate a couple of grands worth of issues by lack of spending 80 pcm on bits averaged across the 2 years. Take car to dealer when something has made a noise or light so annoying that it cannot be ignored. The garage then tries to take you for £3k most if which is advisable and a service is overdue. Moan about how "rubbish Car X is to run". Cry and then sell for pennies or pay for it to be done and the "get rid of it" and Cry.
B ) Go and buy a car on £250 pcm and have no issues and maybe some free insurance. Done. Even if that is 15-20% of Net salary its done and fixed. No nasty surprises and they are in a new car with emm peee gee and an IPod connector.
I think it is important not to equate 2nd hand car ownership that most on here would consider compare to a numpty. Thats why it starts to appeal. I would prefer a 4-6k A6 Quattro and some bills over a lease but I know how to deal with it mentally and financially. The depreciation to them is invisible in the "car loan"
t and leave it here.I don't think I understand the question.
Are you really saying the most you'd ever spend on a car is 10% of your net monthly income? So 1/120th of your net yearly income? If you earned £120k a year that'd meant the most expensive car you'd ever buy would be £1k.
When I bought my car, it was about eight times my net monthly salary.
Are you really saying the most you'd ever spend on a car is 10% of your net monthly income? So 1/120th of your net yearly income? If you earned £120k a year that'd meant the most expensive car you'd ever buy would be £1k.
When I bought my car, it was about eight times my net monthly salary.
If you read I said it buys you nothing on HP. I would never lease.
Don't you folks first max out your ISA allowance for the year before even considering buying a T shirt for example?
What about saving for house, retirement even as a single young person?
Don't you folks first max out your ISA allowance for the year before even considering buying a T shirt for example?
What about saving for house, retirement even as a single young person?
Edited by Audemars on Tuesday 3rd May 17:35
kambites said:
I don't think I understand the question.
Are you really saying the most you'd ever spend on a car is 10% of your net monthly income? So 1/120th of your net yearly income? If you earned £120k a year that'd meant the most expensive car you'd ever buy would be £1k.
When I bought my car, it was about eight times my net monthly salary.
He's clearly talking about finance in the OP. Since most people quote salary gross, but expenditure net, I put him at about 5k per month. if it's anymore, he's lacking imagination and ambition.Are you really saying the most you'd ever spend on a car is 10% of your net monthly income? So 1/120th of your net yearly income? If you earned £120k a year that'd meant the most expensive car you'd ever buy would be £1k.
When I bought my car, it was about eight times my net monthly salary.
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