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

[Audemars]

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

Just wanted to see how much people spend on their car purchase as a % of their NET monthly salary.

I personally could not justify anything greater than 10% of my net monthly salary and given I earn 6 figs doesn't buy me much (especially as I would never lease but only consider HP if I did go the finance route).

Don't you folks feel it is wrong to spend so much on a car?

Don't you parents of these young kids who buy new cars on finance give them a good kick in when they even contemplate such practices?

[Audemars]

If you read I said it buys you nothing on HP. I would never lease.

Don't you folks first max out your ISA allowance for the year before even considering buying a T shirt for example?

What about saving for house, retirement even as a single young person?

Edited by Audemars on Tuesday 3rd May 17:35

[Audemars]

stongle said:

6 figs, eh? Best you stop posting on PH and get back to work licking stamps in the post room. A 100k, is >5k net p.m. You can rent an E63 for 10% of that. I don't get it?

Yes, lease but not HP.

[Audemars]

ChilliWhizz said:

OP, just out of curiosity, what do you drive at present?

Genuine question....

A car that has nearly doubled in value since purchase.

[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.

[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......

[Audemars]

covmutley said:

Company cars, 'cheap' leases, gifts, inheritance.... Lots of reasons why people may have cars that seem expensive.

also if average wage is circa 30 then there are lots of people earning more. I would say most cars I see are relatively less expensive, they just go unoticed.

That's because I was raised to buy things in cash. My old man even told me I should only buy a house in cash. Tried that with my first property but the market moved too fast meaning I had to get small 20% mortgage on a 5 bed house.

I know very little about car financing until recently. Didn't even know what the 3 meant in a 3x 36m payment quote.

Edited by Audemars on Tuesday 3rd May 21:42

Edited by Audemars on Tuesday 3rd May 21:42

[Audemars]

swerni said:

Evanivitch said:

Audemars said:

A car that has nearly doubled in value since purchase.

That's not an answer though is it.

He means he filled it with petrol
It's now worth £100

I didn't provide a specific answer because I know the replies it would get just like my 6 fig salary statement. Didn't want to say that but wanted to put into context how most people earning less than average salary are comfortable spending the way they do on a monthly lease. Just look at all the new cars outside terrace houses.

[Audemars]

SidewaysSi said:

Very true. Or he gets his "mate" to come on and fight his corner. What's the betting the OP won't return?

Why wouldn't I return?

I didn't expect real answers from this post as I suspect most are spending way over 50%.

[Audemars]

daemon said:

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

No I expect most are on less.

[Audemars]

SidewaysSi said:

I spend 80%. What does that make me in your mind?

Living beyond your means.

[Audemars]

The replies in this thread are comical and typical that I really shouldn't be surprised.

I bet you guys all think you deserve to buy cars you shouldn't because you all "work hard". At the end of the day a lot of you will feel the force of your actions when you get old at which time you will no doubt be blaming the government.

Don't kid yourselves, most people in the country (especially youngsters) look forward to payday mid month because they are literally skint and dying for some cash to blow down the pub. The easy monthly cost with leasing will always look good to those that do not have financial sense.

When I was on a £100k ish salary many many years ago, I felt always poor. I never felt I should buy a car over £20k new or used. Don't know how you folks do it.

Despite 200 replies there is still no useful information to construct a normal distribution for P-headers. Ah well, I will take it as a learning experience.

Edited by Audemars on Wednesday 4th May 17:33