What portion of your income should be spent on cars ??

[M7arthy]

The internet says that you should not spend more than 10-15% of your annual income on a car, however that was most probably written by someone who sees cars as a necessary evil purely used to get them from point a to point b. So the question here is how much would you allocate for a car ???

[Dr Jekyll]

M7arthy said:

The internet says that you should not spend more than 10-15% of your annual income on a car, however that was most probably written by someone who sees cars as a necessary evil purely used to get them from point a to point b. So the question here is how much would you allocate for a car ???

Is this purchase price or finance payments? I'd go up to 20% of gross income as purchase price. My current car was about 12.5% of yearly gross income.

[Wacky Racer]

As little as possible, a car is a lump of metal to get you from A to B.

[Hungrymc]

Is it a car as simple transport? A hobby? An investment?

[anonymous-user]

"The internet" says a lot of things.

The answer inevitably varies so much based on individual factors that a percentage is meaningless.

[tektas]

Are we talking about purchase or for example mods?

[Master Bean]

120%.

[powerstroke]

Depends , kid living with parents , suporting a family , age ?? If you're young free and single you should spend most of it on cars ,bikes and fun !!!
once you have done that and settled down it should fit in with your responsabilitys ,but remembering life should be fun
so don't blow the budget on a people carrier save a little for a hobby car /project......

[caelite]

Um... At least half, maybe 2/3rds . I'm a student so my income is pretty pitiful, hell I'd say my fuel bill eats into at least 25% every month just getting to college (20miles away) and work (5 miles away)

[GroundEffect]

I'm a 29yo single male professional. Current car is about 40% of gross annual. Owned.

Looking at a 911, £15k on tick that would be ~60% of gross in total cost.

But you only live once, right?

[Vitorio]

As much as you want, without placing your physical and financial welbeing (and that of your dependents) at risk.

[warcalf]

My current car was 50%...

[SystemParanoia]

Current pair of cars combined were 2% gross outright.

...I Drive a Macca P1 and the Mrs a La Ferrari

Edited by SystemParanoia on Thursday 30th March 09:14

[Jonno02]

Current car is 11.7% of gross annual. It's nothing special, just a nice new hot hatch. If someone wants to spent 30%, 40%, 50% etc on their car, good for them. Not my money, so not my place to say anything.

[Tuvra]

However much you want, its your money?

[RS404]

GroundEffect said:

I'm a 29yo single male professional. Current car is about 40% of gross annual. Owned.

Looking at a 911, £15k on tick that would be ~60% of gross in total cost.

But you only live once, right?

You'll need to allow another £5k for an engine rebuild though!

[HustleRussell]

All of my 'disposable' (and then some) for the next six months is going on Caterham racing, Holidays, one holiday where I shall be racing Caterhams and doing my DAS.

[novus]

Tuvra said:

However much you want, its your money?

Nail on the head

[paul789]

Interesting thread - I've been focussing on this lately too.

Until recently, we were spending 10% of net income on mortgage payments and another 10% for monthly finance payments on 2 cars - disco 4 and cayman. I've offloaded the Cayman as I want to create some headroom.

[kambites]

Something between none and all, although I'm willing to accept less than none if you're very good at buying cars which are going to appreciate. If you're spending more than all of your incoming there's probably something wrong.

I set myself a softish limit of 10% to run both cars in the household, personally.

Edited by kambites on Thursday 30th March 09:10