How much of your salary would you spend on a car?
How much of your salary would you spend on a car?
Author
Discussion

cringle

Original Poster:

406 posts

216 months

Thursday 10th January 2013
quotequote all
Despite being in a recession, there are still legions of new Range Rovers/Porsches etc on our roads, which made me think, how much do people spend on their cars in relation to their income? And are all these cars likely to be bought on finance?

davepoth

29,395 posts

229 months

Thursday 10th January 2013
quotequote all
cringle said:
Despite being in a recession, there are still legions of new Range Rovers/Porsches etc on our roads, which made me think, how much do people spend on their cars in relation to their income? And are all these cars likely to be bought on finance?
All those cars are likely to be bought on finance. I aim to spend roughly 10% of my income in any given year on purchasing a car, aiming to last for three years or so. Needless to say that puts me in not-quite-sheds.

cure

231 posts

175 months

Thursday 10th January 2013
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I think there's been a ph poll on this very subject.

cringle

Original Poster:

406 posts

216 months

Thursday 10th January 2013
quotequote all
So if you were on say £70k p.a. after tax, you'd spend around £7k towards a car?

shambolic

2,146 posts

197 months

Thursday 10th January 2013
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Not again FFS!

simoid

19,774 posts

188 months

Thursday 10th January 2013
quotequote all
Spent 120% of my salary last year on a car smile

davepoth

29,395 posts

229 months

Thursday 10th January 2013
quotequote all
cringle said:
So if you were on say £70k p.a. after tax, you'd spend around £7k towards a car?
Yup. I'm a tight fisted git. biggrin


EK993

1,957 posts

281 months

Thursday 10th January 2013
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When I was in my 20's - all my available cash.

Now am I have just hit my 40's I am willing to spend very little to be honest - have a small amount to pay off on my mortgage (maybe another year) and that's the most important priority for my cash at the moment.

I just can't bring myself to drop a load of cash on something silly. I think I have gotten old and cars no longer seem to be my priority even though I still love them and spend endless hours on here and browsing the classifieds.


vit4

3,507 posts

200 months

Thursday 10th January 2013
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It's like bloody Groundhog Day! laugh

Jamirecluse

465 posts

181 months

Thursday 10th January 2013
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vit4 said:
It's like bloody Groundhog Day! laugh
Yeah, people putting down others efforts to start a new topic. wink

James_N

3,303 posts

264 months

Thursday 10th January 2013
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5% of my annual salary was spent on my last car and the car before that was just 0.56% biggrin

So not a lot nowadays now i'm getting older! when I was in my early 20's, I blew pretty much all my wages on cars.

Ari

19,826 posts

245 months

Thursday 10th January 2013
quotequote all
cringle said:
Despite being in a recession, there are still legions of new Range Rovers/Porsches etc on our roads, which made me think, how much do people spend on their cars in relation to their income? And are all these cars likely to be bought on finance?
Some, but proportionately it will be all the new Fiestas and Clios out there that are more likely to be on £199/month PCP deals where the car is never owned, just effectively rented.

SystemParanoia

14,343 posts

228 months

Thursday 10th January 2013
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so far im at %73.47

VinceFox

20,566 posts

202 months

Thursday 10th January 2013
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Kind of hard to answer this one as i wouldnt use finance to buy a car. Unless i can pay for it outright i wouldnt change cars.


Captain Muppet

8,540 posts

295 months

Thursday 10th January 2013
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I can't be bothered to google my answers from last time.

I've spent more on a car than I earned in a year.

I've also spent less on a car than I've earned in an hour.

So I have to say it depends.

Edit to add: Both cars were paid for in full, in cash.

Edited by Captain Muppet on Thursday 10th January 09:48

Snowboy

8,028 posts

181 months

Thursday 10th January 2013
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For a cash buy it was about half a months wages.
For a finance car it was about 2-3 days wages a month over 3 years.

I'd guess a lit of prestige cars are bought on finance/lease by peopke who are happy to spend X per month permanently for a decent car.
I'd also guess there are a lot of company cars.


clockworks

7,723 posts

175 months

Thursday 10th January 2013
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My two cars cost four times my current wages.

Snowboy

8,028 posts

181 months

Thursday 10th January 2013
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I'd also suggest that the more someone warns the greater the % of disposable income.
Also, it's worth considering household income and household expenses.

You'll amost certainly find a fairly even spread of results.

jonny70

1,280 posts

188 months

Thursday 10th January 2013
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its a stupid question cause someone that earns 20k will spend most of salary on mortgage/rent/utilities/food and other necessities.Where as someone on 180k will also buy necessities like food and utilities yet they will be a much lower percentage of overall salary than those on a much lower income ,as how much bread/meat and heating can one consume?

ok housing is a little different as the more one earns the more they genrally spend on accommodation so therefore the more one earns the more disposable income one will have as they can only consume so many necessites so therefore all surplus funds are either spent or save ,if they are spent well its normally luxury goods .

Rakoosh

347 posts

200 months

Thursday 10th January 2013
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Despite being in a recession, there are still legions of people gainfully employed and/or still wealthy...

cringle said:
Despite being in a recession, there are still legions of new Range Rovers/Porsches etc on our roads,