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

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

Author
Discussion

stongle

5,910 posts

161 months

Tuesday 3rd May 2016
quotequote all
I lease a white goods 3 series touring (M Sport Plus for all the haters). It's coming up for vt, and we'll probably get another of somesort. You see the problem is my wife tends to crash into things, kerb the wheels and the kids throw milk all over the place and puke in it.

I think the majority of the car buying public set a budget and work to it these days. Especially if it's hassle free, which HP is not (ever had to take 20k in readies for a car sale these days - hassle).

I've yet to find a family car the increases in value, well not one that takes about 2 hrs to purchase every 30 months, and I give the keys back and walk away. Funny I tend to look at all cars the same and don't make a judgement on the owners.

As for the 10% of take home? Can't fit the kids in an Avantador and I think the Bentayga looks sh*t.

Coolbanana

4,383 posts

199 months

Tuesday 3rd May 2016
quotequote all
My priority is my home, not my car. I'm amazed when I see new cars that go for approx. £70k+ in front of a run-down, poorly maintained terrace house that is only worth about 5 times that! So 20% of their home's value on a rapidly depreciating car.

I wouldn't spend more than 10% of my house value on a car - this is more relevant to me than my income percentage.

Not that I've ever got close to 10% either; usually about 3%.

MrBarry123

6,025 posts

120 months

Tuesday 3rd May 2016
quotequote all
Coolbanana said:
My priority is my home, not my car. I'm amazed when I see new cars that go for approx. £70k+ in front of a run-down, poorly maintained terrace house that is only worth about 5 times that! So 20% of their home's value on a rapidly depreciating car.

I wouldn't spend more than 10% of my house value on a car - this is more relevant to me than my income percentage.

Not that I've ever got close to 10% either; usually about 3%.
So your house is worth approximately £1m given a Golf R is around £30k?

Good on your if it is.

GetCarter

29,358 posts

278 months

Tuesday 3rd May 2016
quotequote all
Ignoring all the stupid posts on this thread.

O/P - 6% (on 2 new cars)

Eski1991

1,113 posts

132 months

Tuesday 3rd May 2016
quotequote all
Spend as in purchase - less than 5%

Maintenance is peanuts - 2% per annum, this year has been rather expensive what with the water pump, coil spring, two new tyres and I reckon the brakes will need doing soon. That lot ran me £200, still diagnosing the steering in the wet fault, but it's dry at the moment so we shan't worry.

Insurance - 2% again, it's a cheap boring car in the boring South East and I have a boring job so nice low premiums

I would love to spend half my salary on cars and just burn through fuel and rear tyres but I have other hobbies I'd rather invest in, no doubt I've spent more on cycling than driving in the last year.

stongle

5,910 posts

161 months

Tuesday 3rd May 2016
quotequote all
Coolbanana said:
My priority is my home, not my car. I'm amazed when I see new cars that go for approx. £70k+ in front of a run-down, poorly maintained terrace house that is only worth about 5 times that! So 20% of their home's value on a rapidly depreciating car.
.
And if these people owned their home, no desire to move (good school catchment area, say)?

Or lived in London where the 2 bed terrace is worth a million?


Jessicus

374 posts

145 months

Tuesday 3rd May 2016
quotequote all
Why does anyone care what other people do with their money? Or how much other people have?

Is it to try to intimidate/impress anonymous people on the internet? Surely not.

Tickle

4,880 posts

203 months

Tuesday 3rd May 2016
quotequote all
Not much, a couple % maybe for insurance/service/tax.

skahigh

2,023 posts

130 months

Tuesday 3rd May 2016
quotequote all
Op, are you factoring in all the costs of running a car (interest charges, depreciation, servicing, consumables, fuel, ved, etc)? Or just a single amount for finance?

If the latter I don't see how you can glean anything meaningful from it as the rest of the costs incurred can make such a vast difference and, if the former, I don't see how most people can work this out accurately as the depreciation is not truly known until you sell the car and things like repairs and consumables can vary greatly from year to year.

ChilliWhizz

11,990 posts

160 months

Tuesday 3rd May 2016
quotequote all
Jessicus said:
Why does anyone care what other people do with their money? Or how much other people have?

Is it to try to intimidate/impress anonymous people on the internet? Surely not.
Well said.....

Wills2

22,669 posts

174 months

Tuesday 3rd May 2016
quotequote all
0% as I man mathed my way into it.

Don

28,377 posts

283 months

Tuesday 3rd May 2016
quotequote all
Wills2 said:
0% as I man mathed my way into it.
Interestingly I'm at 0% too. All my cars are bought and paid for. So there's no monthly payment at all. If I amortised the purchase over how long I have kept the cars it still wouldn't be more than a few percent.

Eski1991

1,113 posts

132 months

Tuesday 3rd May 2016
quotequote all
Jessicus said:
Why does anyone care what other people do with their money? Or how much other people have?

Is it to try to intimidate/impress anonymous people on the internet? Surely not.
I wish my spending was impressive to people on the internet.

Just something to discuss I suppose, especially considering the huge amount of daft looking "AMG" models my peers seem to be leasing or financing every few years and spending enough on their monthly payments to get them out of the rent trap if they ran a shed for a few years, although you're right, it is their money to piss away.

daemon

35,724 posts

196 months

Tuesday 3rd May 2016
quotequote all
kambites said:
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.
Yes, i would agree. I was using the term "bought" loosely.


B.J.W

5,782 posts

214 months

Tuesday 3rd May 2016
quotequote all
Wills2 said:
0% as I man mathed my way into it.
Mrs B.J.W, who is an intelligent lady, has been given the man maths reply to "how much do you spend on your cars?" hehe

I'm lucky enough to have paid off the mortgage, so I don't have any significant outgoings, but renting a unit to keep them and the arrival of B.J.W junior will cost.


J4CKO

41,287 posts

199 months

Tuesday 3rd May 2016
quotequote all
Hmm, my CLS I paid Seven grand for, no loan so I own it, it costs me,

£44.18 in VED

£21.68 in insurance

It will, like any other car, depreciate, but more slowly at 8 years old, round it up with the other costs to say £100 a month, Tyres and servicing, say £30 a month as dont do many miles and service it myself.

Less than 5%, if it doesn't expire in an expensive manner.....

I could run a car more cheaply, but it would still cost something, even some aged diesel, so I look at it as a small price to pay to drive something quite pleasant, ok, its not exactly a new 911 but for what it costs, it provides a lot of enjoyment, if it dies I can get something else or the company will give me a shiny new one if I ask.

AshBurrows

2,552 posts

161 months

Tuesday 3rd May 2016
quotequote all
Op is an absolute bell.
What kind of mong joins pistonheads and then refuses to discuss what they drive?!
But I don't know anything I'm just a sweet, powerfully built, seven figgy director biglaugh

Stormfly1985

2,698 posts

165 months

Tuesday 3rd May 2016
quotequote all
Money is completely pointless unless you spend it on something. I don't get people who have tens or hundreds of thousands of pounds in the bank and then never spend it. You really can't take it with you when you snuff it!

My girlfriend and I don't have kids and never will and we both decided that we don't want to leave a penny when we die.

I drive a 11 year old Mondeo at the moment but am considering a car that would cost 100% of yearly salary - and why not? I have a bit of savings for emergencies, I have everything I need and what I want is generally out my reach anyway.

Life is for living! smile

steviegunn

1,415 posts

183 months

Tuesday 3rd May 2016
quotequote all
Excluding purchase price, which was a cash purchase a coupe of years ago and petrol costs, I'd estimate around 2.5% of annual net salary spent on MOT, tax, insurance and maintenance.

Matt UK

17,649 posts

199 months

Tuesday 3rd May 2016
quotequote all
I'm not telling.