Car V House price ratio?

[audi321]

With the 2 biggest purchases in an average persons life being a house and a car. What do you guys think an acceptable percentage of house value to spend on a car? i.e. If house value is £200k is 10% (£20k) a reasonable figure to spend on a car?

At what point does it become out of proportion? I'm at about 15%!

[jas xjr]

At .5% . I really must try harder. I promise that within five years I will buy something silly

[DavidY]

Current total car value (2 cars) v current house value = 1.1%

Another must try harder!!

But a previous house (6 cars between two of us, and two bikes) = 55% !!!!

[otolith]

This has been done several times before.

It's a silly question - what if you don't particularly like houses and love cars? Or vice-versa?

[JQ]

0.8% here.

[R11ysf]

It's totally irrelevant. It's all to do with your total amount of money available. Chris Evans' cars are worth more than his house. So what?

[Fume troll]

I was going to say there was no relationship, but it would be interesting to see the numbers plotted on a graph. I dare say you it would be a slope with negative gradient.

Cheers,

FT.

[darreni]

2% here, but looking to change the car.

[jeff m]

I'm up around 40%
I think I need a better house

[ascayman]

silly question.

person one 200k house 90% mortgage

person two 200k house 20% mortgage

they both live in the same value house but person two has a lot more money available to spend on wheels.

[trickywoo]

About 150%

[Dr Jekyll]

An interesting benchmark suggested to me once was to ensure that the monthly depreciation is less than your monthly pension contributions. Personally I'd prefer much less than that though.

[jeff m]

Dr Jekyll said:

An interesting benchmark suggested to me once was to ensure that the monthly depreciation is less than your monthly pension contributions.

Maintains your net worth.
Makes sense, although I do think you need a new circle of friends, maybe some with a broader veiw on life



I have a few like them.

[markbs]

Mine is 0.0025%

Mainly because I put everything I could find into buying and doing up our home. Based on this, I'm pretty sure if I hadn't bought an MK1 MX5 I'd need to hand in my pistonheads card.

[Burnham]

markbs said:

Mine is 0.0025%

Mainly because I put everything I could find into buying and doing up our home. Based on this, I'm pretty sure if I hadn't bought an MK1 MX5 I'd need to hand in my pistonheads card.

Yes, thats pretty low! Mine was 0.0005% up until the point when I gave away my snotter and sold my house, now a more respectible 18%!

[blank]

My parents' most expensive car cost more than their house. They bought their house a long time ago...

[Beardy10]

My highest ratio was back in my 20's....around 35% when I bought a new E36 Evo Cab in 1997. Currently well under 5% but spending a lot more on cars.

[Y282]

trickywoo said:

About 150%

that's probly a little out of balance. if i could afford that i'd want to live somewhere a little more private instead.

[swindler]

c. 50%
but it's an unusal situation...

[Pints]

Around 1.5% based on original purchase price of each.