Do car dealers check your house value?
Discussion
Where I live has a high Asian population. They like to live in a certain part of town in their own community with mosques and their own businesses in the area. The houses in this area tend to have quite a low value compared to the rest of the town. A work colleague of mine lives in a 1930s semi worth about £130k. His neighbour on one side has a brand new BMW 3 Series and his neighbour on the other side has a brand new Audi S5. The houses will often be expensively decorated and furnished as well.
Go down to London and you see houses worth a couple of million pounds that look scruffy, have overgrown gardens and old bangers outside.
People spend their money in different ways and house values according to level of wealth and the kind of cars people are likely to drive vary from one part of the country to another.
Go down to London and you see houses worth a couple of million pounds that look scruffy, have overgrown gardens and old bangers outside.
People spend their money in different ways and house values according to level of wealth and the kind of cars people are likely to drive vary from one part of the country to another.
Personally I couldn't care less what a person's house is worth relative to the value of their car(s). In my neck of the woods I could build my dream house for about £400k including land - a simple, modern, minimalist affair planned across one floor with garaging for four cars underneath. The four cars in question would be my beloved old E36 BMW, a newer BMW like a 435i M Sport and then my two dream cars - a Ferrari Testarossa and a Ferrari F40. The value of the cars would collectively be way in excess of that of the house, but as long as the house is serving its purpose, who cares? The important thing is to be happy with what YOU have and not be preoccupied with relative numbers or ratios, or how what you have may appear to someone else, or compare with what they have.
What a ridiculous question. Why the hell would they care?
Someone in an expensive house may have no money (either because they're paying a lot for their house or because they bought it before it was expensive), and someone in a cheap house may have plenty of money.
My parents' neighbour has a V8 Vantage and a house that's probably £150k. But it's nice, big, 4 bedrooms, large garden. There's only 2 of them so even a "cheap" house can be overkill!
Someone in an expensive house may have no money (either because they're paying a lot for their house or because they bought it before it was expensive), and someone in a cheap house may have plenty of money.
My parents' neighbour has a V8 Vantage and a house that's probably £150k. But it's nice, big, 4 bedrooms, large garden. There's only 2 of them so even a "cheap" house can be overkill!
I just want to say well done OP. Sounds like you've decided what you wanted and stuck to a plan which is about to bear fruit. Good for you.
As for the argument about house vs. car value, I really can't say I'd even consider the value of the house when thinking about what to spend on a car. The only time I'd consider anything even remotely related would be if it were move and upgrade or build an extension vs buy a supercar....
As for the argument about house vs. car value, I really can't say I'd even consider the value of the house when thinking about what to spend on a car. The only time I'd consider anything even remotely related would be if it were move and upgrade or build an extension vs buy a supercar....
Wacky Racer said:
Someone might own a house worth 250k outright
Someone else one for 500k with a 400k mortgage on it.
Someone else one for 500k with a 400k mortgage on it.
Absolutely.
But it's just the PH financial
OP - no, I very much doubt it - otherwise no-one would ever sell a car worth more than a few £k up North!
Ollie123 said:
Why not?
Do you think I need a more expensive house to justify an expensive car?
What if it was the same house but in London and worth £2 million pounds, then would it be ok to spend £45k on a car?
One last thing, does it matter if the house is mortgaged or not?
Obviously it's your money but if you were my son I'd explain that you can have as much fun in a cheaper car and that generally houses go up in price and cars go down so I'd suggest that it was a poor financial decision.Do you think I need a more expensive house to justify an expensive car?
What if it was the same house but in London and worth £2 million pounds, then would it be ok to spend £45k on a car?
One last thing, does it matter if the house is mortgaged or not?
Although if you could demonstrate that your car would rise in value as many have recently done, then I wouldn't have an issue with it, if you could afford it.
If you had a £2M house then obviously in percentage terms it makes a lot more sense - assuming you owned a reasonable proportion of it.
No, no one is checking your house!! its purely for the pc based diary systems {crm} you will find in most dealership its the 1st thing they have to do. logging the enquiry, and if you book an appointment they already have your details for car insurance test drive purposes as well as wanting to see your current license.
V8RX7 said:
Obviously it's your money but if you were my son I'd explain that you can have as much fun in a cheaper car and that generally houses go up in price and cars go down so I'd suggest that it was a poor financial decision.
Although if you could demonstrate that your car would rise in value as many have recently done, then I wouldn't have an issue with it, if you could afford it.
If you had a £2M house then obviously in percentage terms it makes a lot more sense - assuming you owned a reasonable proportion of it.
This is kind of what I was getting at. I'm not saying you shouldn't park a 45k car in front of a 130k house. Although if you could demonstrate that your car would rise in value as many have recently done, then I wouldn't have an issue with it, if you could afford it.
If you had a £2M house then obviously in percentage terms it makes a lot more sense - assuming you owned a reasonable proportion of it.
If it was my money(which it isn't) I would be spending it elsewhere. But it's your hard earned and you buy whatever you like.
Hmmmm!
I actually know an New car salesman who used to check the postcodes out on Google street level, before letting people having test drives in the higher powered or prestige cars they sold.
I asked if he had ever had a scruffy millionaire get offended by a rejection (there was a ph story about that a few years back) and his answer was that they do exist, but they don't live in starter homes, or small terraced houses. Usually farms, or poorly maintained large houses.
I actually know an New car salesman who used to check the postcodes out on Google street level, before letting people having test drives in the higher powered or prestige cars they sold.
I asked if he had ever had a scruffy millionaire get offended by a rejection (there was a ph story about that a few years back) and his answer was that they do exist, but they don't live in starter homes, or small terraced houses. Usually farms, or poorly maintained large houses.
Hol said:
Hmmmm!
I actually know an New car salesman who used to check the postcodes out on Google street level, before letting people having test drives in the higher powered or prestige cars they sold.
I asked if he had ever had a scruffy millionaire get offended by a rejection (there was a ph story about that a few years back) and his answer was that they do exist, but they don't live in starter homes, or small terraced houses. Usually farms, or poorly maintained large houses.
They do on PH...or their dad's friend does. I actually know an New car salesman who used to check the postcodes out on Google street level, before letting people having test drives in the higher powered or prestige cars they sold.
I asked if he had ever had a scruffy millionaire get offended by a rejection (there was a ph story about that a few years back) and his answer was that they do exist, but they don't live in starter homes, or small terraced houses. Usually farms, or poorly maintained large houses.
HTP99 said:
We most certainly don't; but then the most expensive thing that we would sell would be about £25k, I can't talk for prestige or sports brands, however a colleague went for a job at a Porsche main dealer and was lead to believe that they credit check their new customers before agreeing test drives, not sure to what extent though.
I will take address and contact details from anyone who wants to make an appointment to discuss a purchase, so that they are logged in my diary.
What if you have bad credit but a couple of million in the bank? Sounds a bit daft to base a decision to allow a test drive on that criteria.I will take address and contact details from anyone who wants to make an appointment to discuss a purchase, so that they are logged in my diary.
Edited by HTP99 on Thursday 27th August 20:08
rickh said:
No, no one is checking your house!! its purely for the pc based diary systems {crm} you will find in most dealership its the 1st thing they have to do. logging the enquiry, and if you book an appointment they already have your details for car insurance test drive purposes as well as wanting to see your current license.
^^^^This.
Its just the way their systems work.
No need for tinfoil hats
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