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

[aspirated]

Audemars, what if some spent a large proportion more than 10% of their income on a car, and the appreciation in value more than covered the cost of running it? Would you still feel the same way?


Not all cars suffer from depreciation

[kambites]

stongle said:

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.

That was what confused me. To me the post implied that he wouldn't usually finance.

[Evanivitch]

Audemars said:

A car that has nearly doubled in value since purchase.

That's not an answer though is it.

[sunnydude]

MOBB said:

My M5 costs me around 10% of my net

But I don't have kids, I don't smoke or drink - my car is a hobby

Same here. I have an M5 too, no expenses (and im useless with girls so not a gf either!), and my car is the only thing i spend money on. I'd say running costs could be between 5%-10% of my earnings at the moment.

[Audemars]

aspirated said:

Audemars, what if some spent a large proportion more than 10% of their income on a car, and the appreciation in value more than covered the cost of running it? Would you still feel the same way?


Not all cars suffer from depreciation

I know, both my cars are such cars.

Problem is, most new cars bought on finance are everyday cars eg BMWs, Audi, Mercs.

Edited by Audemars on Tuesday 3rd May 17:44

[Audemars]

kambites said:

That was what confused me. To me the post implied that he wouldn't usually finance.

I have never financed a car in my life but was recently just looking into it to see if rates would make it sensible. No one provide HP rates lower than 3%. I may as well buy used for cash like I always have.

[shake n bake]

I feel an o.p flounce coming on with this thread.

[Hitch78]

0% as cash purchase obvs. Doesn't everyone?!

Depreciation is probably 1.5% of net income and total motoring costs 2.5-3% excluding fuel. A decent lease would push that to 7/8% so I do see the attraction but I'm buying a house so happy to slum it for now.

[Willy Nilly]

I spent many months wages on a nearly new and very unPH car. However, said car will last me another 10+ years and even if I have to part with it for zero will only cost about £800/year in depreciation.

[Audemars]

shake n bake said:

I feel an o.p flounce coming on with this thread.

Yep, expected this but just curious to see peoples numbers.

No one admitting over 50% which I expect is the true case given average salary is somewhere in the £30k. I personally would be walking or getting the bus everywhere if I was on average salary and putting my cash away.

Kids these days......

[INWB]

What's a salary ????

Anyway - bought my son a car from a trader yesterday in north notts. He said the £5K-£10K market had all but died in his area. He blamed people being nervous after the last election and he also blamed these £99 a month deals on things like the C1 etc.

The next crash is coming imo and many people I speak to seem to be up to eyeballs in debt without much room to manoeuvre if/when things head south.

[otolith]

A quick sniff on the web suggests that if you financed the purchase with a personal loan, £500/month for three years would get you about 17k at the moment. If you buy something new, and it depreciates by half in the three years, you have 25.5k for your next car, and 31.9k for the one after that, and will eventually stabilise at 34k when your ongoing depreciation matches your three yearly cash injection. If you managed to consistently pick the cars with the lowest depreciation on the market (say 70%), you'd stabilise at around 57k.

Alternatively, if instead of taking out a loan for the first car you put £500 a month aside into an ISA for three years and then continued to do so, buying a new car cash every three years, you would end up funding the depreciation of something worth about 37k if you lost 50% over 3 years or about 62k if you lost 30%.

So on a 91k salary, spending 10% of net pay a month on funding your car, depending how badly you choose depreciation-wise, you would eventually end up with a brand new 34k-57k car on your drive every three years if you finance it and a 37k-62k one if you save. Note that you're approaching an asymptote, the value of car you can fund increases rapidly at first and then slows down.

Interesting that people think that whether a car is financed or saved for makes a meaningful difference to affordability, when it reality with current interest rates it's largely irrelevant when compared to the impact of variations in depreciation.

[iphonedyou]

OP has form for the considerably richer than you spiel.

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

Best avoided.

[SidewaysSi]

Audemars said:

shake n bake said:

I feel an o.p flounce coming on with this thread.

Yep, expected this but just curious to see peoples numbers.

No one admitting over 50% which I expect is the true case given average salary is somewhere in the £30k. I personally would be walking or getting the bus everywhere if I was on average salary and putting my cash away.

Kids these days......

Good for you. Quite frankly I can't see why you would be interested in what other people spend their money on other than to come to some form of pathetic judgement.

[daemon]

Audemars said:

shake n bake said:

I feel an o.p flounce coming on with this thread.

Yep, expected this but just curious to see peoples numbers.

No one admitting over 50% which I expect is the true case given average salary is somewhere in the £30k. I personally would be walking or getting the bus everywhere if I was on average salary and putting my cash away.

Kids these days......

Are you deliberately trying to be inflamatory?

Who says kids are doing that these days?

And what do you mean by "no one is admitting"?

And do you really think those maybe trying to run a home and feed a family either (a) are concerned about leasing a new car or (b) have the option to walk and "save" all theiy money?

[INWB]

Audemars said:

I personally would be walking or getting the bus everywhere if I was on average salary and putting my cash away.

No you wouldn't because the buses are horrible and outside of london almost non functioning.

Reading through it seems that this is more a willy waving thread. Why not tell us what you drive?

[daemon]

Audemars said:

I am simply amazed at the number of new cars bought in this country vs the average salary.

You're making the assumption that those people who buy new cars are on average salary.

[ChilliWhizz]

iphonedyou said:

OP has form for the considerably richer than you spiel.

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

Best avoided.

The '6 fig' reference in the first post kinda said it all....

[daemon]

ChilliWhizz said:

iphonedyou said:

OP has form for the considerably richer than you spiel.

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

Best avoided.

The '6 fig' reference in the first post kinda said it all....

Though to his credit, he left that to line three before dropping it in

[kambites]

daemon said:

Audemars said:

I am simply amazed at the number of new cars bought in this country vs the average salary.

You're making the assumption that those people who buy new cars are on average salary.

And the assumption that the new cars you see on the roads have been bought at all. I'm pretty sure the majority of new cars registered in the UK are never owned by their original keeper.