What % of NET monthly salary do you spend on your car
Discussion
lostkiwi said:
Show me evidence to the contrary then.
With respect, the burden of proof surely lies with the person basing an assertion on the assumption in question.ETA: Also, I'm no mod but can I politely request that for the sake of the thread we all refrain from the 'let me google that for you', 'you're trolling', 'you're hard of thinking' and 'it's really not difficult' line of response?
We'll all be the better for it.
lostkiwi said:
daemon said:
And your biggest assumption is that people who lease are people who other live hand to mouth each month? Thats the BIGGEST weakness in your argument.
Show me evidence to the contrary then.lostkiwi said:
daemon said:
And your biggest assumption is that people who lease are people who other live hand to mouth each month? Thats the BIGGEST weakness in your argument.
Show me evidence to the contrary then.lostkiwi said:
No. Read what I've posted.
We are fortunate enough to have sufficient put away that we could live for 4-5 years with no other income if we had to without missing a payment on either the car (which would be at the end of term next year) or the mortgage or household bills.
We are fortunate enough to have sufficient put away that we could live for 4-5 years with no other income if we had to without missing a payment on either the car (which would be at the end of term next year) or the mortgage or household bills.
daemon said:
lostkiwi said:
daemon said:
And your biggest assumption is that people who lease are people who other live hand to mouth each month? Thats the BIGGEST weakness in your argument.
Show me evidence to the contrary then.The decrease in household savings ratios coupled to increased leasing is a clear indication people no longer are putting money away.
When they stop putting money away they start living payday to payday.
k-ink said:
Yes I think the cheap £99 deals make good sense. Probably better than buying at that level of cost and security. However my comments were aimed more at the mid to higher end: £500-£1000 per month etc. Not that I wish to put anyone off such behaviour! 
Yes, however those motivated to spend £1,000 of month on a car arent generally motivated to want to run something old.A well spec'd new M4 probably comes in at around £1,000 a month once you factor in deposit. A very new e46 M3 can be had for £10K, or an E92 M3 from £16K, however there are those who want a new car and are happy - and can afford to - pay £1,000 a month for what they want.
Different people want different things.
Look at the sheer growth in New Car Sales:
2011 1,941,253
2012 2,044,609
2013 2,264,737
2014 2,476,435
2015 2,633,503
2016 2,791,513 (Estimate)
Drivers
- Lease Deals
- Cheap Finance (low interest rates)
- PPI winfalls
- Improving economy
Looking forward to when these start to flood the used car market. Then there will be bargains to be had for the used car buyer. End of 2016 onwards we should start to feel the benefit. Auction prices are already showing falling prices (see AM Online).
2011 1,941,253
2012 2,044,609
2013 2,264,737
2014 2,476,435
2015 2,633,503
2016 2,791,513 (Estimate)
Drivers
- Lease Deals
- Cheap Finance (low interest rates)
- PPI winfalls
- Improving economy
Looking forward to when these start to flood the used car market. Then there will be bargains to be had for the used car buyer. End of 2016 onwards we should start to feel the benefit. Auction prices are already showing falling prices (see AM Online).
Edited by 355Chris355 on Thursday 5th May 13:52
gizlaroc said:
lostkiwi said:
daemon said:
And your biggest assumption is that people who lease are people who other live hand to mouth each month? Thats the BIGGEST weakness in your argument.
Show me evidence to the contrary then.lostkiwi said:
No. Read what I've posted.
We are fortunate enough to have sufficient put away that we could live for 4-5 years with no other income if we had to without missing a payment on either the car (which would be at the end of term next year) or the mortgage or household bills.
We are fortunate enough to have sufficient put away that we could live for 4-5 years with no other income if we had to without missing a payment on either the car (which would be at the end of term next year) or the mortgage or household bills.
To be fair, I think many are living from one pay day to the next.
However, that is the world we live in, everything is monthly, hence why monthly car payments make sense to many.
We no longer have a local garage in every village who can mend your car for the price of a drink, if something goes wrong it can cost hundreds just to diagnose what is wrong, that is why many see a leased car as 'worth it'.
However, that is the world we live in, everything is monthly, hence why monthly car payments make sense to many.
We no longer have a local garage in every village who can mend your car for the price of a drink, if something goes wrong it can cost hundreds just to diagnose what is wrong, that is why many see a leased car as 'worth it'.
lostkiwi said:
One household is not a representative sample.
No, but all this presumption that most who lease can't afford it is a bit much imho. I am sure most are more worried about paying the mortgage than their car, putting food on the table for their family etc. if they are out of work.
I would imagine most people don't have more than a few months if they are out of work were things start to get very serious, problem is, you can cut back on many things, somewhere to live, bills, food and transport are not things people can cut back on, and transport is something most need to be reliable, hence why so many lease.
lostkiwi said:
Seeing the household savings ratio dropping like that graph is a fairly good indicator that private household debt is increasing. The biggest single debts for many households are mortgages and cars. If a serious recession were to limit household income which do you think most people would default on if money were that tight?
Its really not difficult to understand if you try hard enough.
You should maybe try and work on getting a debating point across without coming across as a prick?Its really not difficult to understand if you try hard enough.
Falling savings is not necessarily an indicator of household debt increasing (by leasing cars for example). It could be because of :-
No longer being in the job they were in and having to take a lower wage
Lower real term wages
Higher cost of living
Higher food cost
Higher fuel cost
Higher Rent
Higher mortgage interest rates
Things that people would jetison quite quickly if they needed to make cuts would be :-
Expensive mobile phone tariffs (£50+ and several in a household)
Expensive SKY / Entertainment packages (£90+ these days for SKY)
Reduce eating out
Reduce take away food
Limit fuel usage by travelling less
Buy budget food - LIDL, etc.
Only after that, and after a sustained period are people likely to consider having to give up their means of transport (which may only amount to £150 a month anyway) bearing in mind the next job might be just around the corner and they will need to travel to interviews / get out anyway.
lostkiwi said:
daemon said:
lostkiwi said:
daemon said:
And your biggest assumption is that people who lease are people who other live hand to mouth each month? Thats the BIGGEST weakness in your argument.
Show me evidence to the contrary then.The decrease in household savings ratios coupled to increased leasing is a clear indication people no longer are putting money away.
When they stop putting money away they start living payday to payday.
YOU demonstrate that thats the case.
I literally do spend 10% - because I'm weird/OCD.
I earn £29k and recently bought a new car for £2,800 (obviously doesn't have to be dead on lol, 10% is the max)
For the first couple of years I put 10% of my monthly wage away to save up for modifications etc.
I kind of started this years ago because I spent (wasted) way too much money on a car and it made me feel a bit sick tbh... so this is my way of holding back, and you know what, it works! It feels just right.
I actually managed to sell my last car (after 4 years and 15k miles) for a profit, so I must be doing something right.
I earn £29k and recently bought a new car for £2,800
(obviously doesn't have to be dead on lol, 10% is the max)For the first couple of years I put 10% of my monthly wage away to save up for modifications etc.
I kind of started this years ago because I spent (wasted) way too much money on a car and it made me feel a bit sick tbh... so this is my way of holding back, and you know what, it works! It feels just right.
I actually managed to sell my last car (after 4 years and 15k miles) for a profit, so I must be doing something right.
355Chris355 said:
Look at the sheer growth in New Car Sales:
2011 1,941,253
2012 2,044,609
2013 2,264,737
2014 2,476,435
2015 2,633,503
2016 2,791,513 (Estimate)
Drivers
- Lease Deals
- Cheap Finance (low interest rates)
- PPI winfalls
- Improving economy
Looking forward to when these start to flood the used car market. Then there will be bargains to be had for the used car buyer. End of 2016 onwards we should start to feel the benefit. Auction prices are already showing falling prices (see AM Online).
These figures are coming from a low point in the recession. 2009 was the bottoming out point because of the recession. Before that it was significantly higher.2011 1,941,253
2012 2,044,609
2013 2,264,737
2014 2,476,435
2015 2,633,503
2016 2,791,513 (Estimate)
Drivers
- Lease Deals
- Cheap Finance (low interest rates)
- PPI winfalls
- Improving economy
Looking forward to when these start to flood the used car market. Then there will be bargains to be had for the used car buyer. End of 2016 onwards we should start to feel the benefit. Auction prices are already showing falling prices (see AM Online).
Edited by 355Chris355 on Thursday 5th May 13:52
lostkiwi said:
daemon said:
You should maybe try and work on getting a debating point across without coming across as a prick?
Pot, kettle, black.Nuff said.
Thats being a prick.
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