Car to Salary Ratio
Car to Salary Ratio
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tooslow96

Original Poster:

52 posts

42 months

Tuesday 29th November 2022
quotequote all
Hello Gents ,

Given (most) cars are the biggest killer to finances except maybe Divorce or Illness.
I was wondering what an appropriate car to salary or wealth ratio is.

Ive read online on some American finance sites and someone posted a screenshot on another thread that total cost of car ownership including petrol , maintenance etc, should be 10% of salary.

If that really is the sensible ratio, then on my salary i would have to get rid of the my almost 20 year old Shed and own a pedal bike.

I know warehouse workers aren't exactly intelligent when it comes to money, but literally the car park at work is littered with M140s ,Golf Rs, GTDs, brand new Korean and French econobox's etc.

Also i was wondering what sort of salary or wealth would one need to have to sensibly own a new shape FF Range Rover given they are now £150k for a decent spec one ! I seem to be spotting quite a few of them now and i doubt every one of them is owned by a millionaire.

Would love to hear your perspectives and thoughts!


2 GKC

2,267 posts

129 months

Tuesday 29th November 2022
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Brace yourself

jules_s

5,071 posts

257 months

Tuesday 29th November 2022
quotequote all
2 GKC said:
Brace yourself
Brace! Brace! biglaugh

Caddyshack

14,223 posts

230 months

Tuesday 29th November 2022
quotequote all
tooslow96 said:
Hello Gents ,

Given (most) cars are the biggest killer to finances except maybe Divorce or Illness.
I was wondering what an appropriate car to salary or wealth ratio is.

Ive read online on some American finance sites and someone posted a screenshot on another thread that total cost of car ownership including petrol , maintenance etc, should be 10% of salary.

If that really is the sensible ratio, then on my salary i would have to get rid of the my almost 20 year old Shed and own a pedal bike.

I know warehouse workers aren't exactly intelligent when it comes to money, but literally the car park at work is littered with M140s ,Golf Rs, GTDs, brand new Korean and French econobox's etc.

Also i was wondering what sort of salary or wealth would one need to have to sensibly own a new shape FF Range Rover given they are now £150k for a decent spec one ! I seem to be spotting quite a few of them now and i doubt every one of them is owned by a millionaire.

Would love to hear your perspectives and thoughts!
I expect the cars in the car park are on finance or leases and the payments may well be something like 10-20% of gross salary (probably worse). There is no point working on the actual retail price / value as most 140’s and Gold R will be monthly payment £40k+ cars.

We buy differently as a whole.


You can tell where this thread will go.

My Helicopter is 1% of my powerfully built director salary and everyone pays cash or hates leases etc…

BERGS2

2,832 posts

272 months

Tuesday 29th November 2022
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2 GKC said:
Brace yourself
yup...

Caddyshack

14,223 posts

230 months

Tuesday 29th November 2022
quotequote all
We all posted similar at once…lol

limpsfield

6,624 posts

277 months

Tuesday 29th November 2022
quotequote all
I know several billionaires who drive Austin allegros and wear charity shop trousers held up with bailing twine.

Am I doing this right?
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