How much do you spend on cars?
Discussion
Sometimes I think I am a bit to “conservative” when it comes to how much I spend on cars, and yet I have a long list of cars I’d want to own at some point in my life.
Out of curiosity, I am wondering what % of your annual income you spend on cars (service, maintenance, insurance, road tax, any finance payment etc…)
I am below 10% and start wondering whether I am missing out (might need to improve my man math skills)
Out of curiosity, I am wondering what % of your annual income you spend on cars (service, maintenance, insurance, road tax, any finance payment etc…)
I am below 10% and start wondering whether I am missing out (might need to improve my man math skills)
Edited by Rivarama on Saturday 10th February 07:35
Maybe 50% of net worth? Rough guess because I don't sit around counting my beans.
But probably <5% of income in actual out of pocket running costs - excluding depreciation which is hard to know until you sell.
The % thing doesn't make sense to me though, if you have spare money after sorting what you need, why not spend it on cars?
Eg if you have £50k and no cars, or £100k of which £50k is tied up in a car, either way you have £50k of non-car assets, what's the difference?
OP I doubt there are many people out there who can be bothered working this out. I certainly don't know my net worth (not that it is in any way impressive or significant).
As you have stated, finances are personal and everyone's circumstances are different. I have colleagues who own cars 10 times the value of mine but on the same salary. They may not have kids, small mortgage, stay at home with parents, inheritance etc.
Just spend what you are comfortable spending. Not sure if this is some kind of strange flex.
As you have stated, finances are personal and everyone's circumstances are different. I have colleagues who own cars 10 times the value of mine but on the same salary. They may not have kids, small mortgage, stay at home with parents, inheritance etc.
Just spend what you are comfortable spending. Not sure if this is some kind of strange flex.
Edited by M.F.D on Saturday 10th February 01:08
No idea, never worked it out and have no interest in doing so.
However, for anybody who may come across this thread and wonder if their £10k Z4 is a good purchase when they're earning £30k, yes it is.
A friend of mine's net worth is about 60% in his cars.
Yes, they're classic Ferraris etc but that's not the point. If you can afford to run something, do it. People spend thousands a year on football tickets and shirts etc so if cars are your hobby, enjoy.
However, for anybody who may come across this thread and wonder if their £10k Z4 is a good purchase when they're earning £30k, yes it is.
A friend of mine's net worth is about 60% in his cars.
Yes, they're classic Ferraris etc but that's not the point. If you can afford to run something, do it. People spend thousands a year on football tickets and shirts etc so if cars are your hobby, enjoy.
Understood - might be confusing. I am still interest to see what % of your annual income you spend on cars (service, maintenance, insurance, road tax, any finance payment etc…)
I have the feeling I am a bit too conservative. I’d like to tell the wife it’s normal to spend more on cars lol
I have the feeling I am a bit too conservative. I’d like to tell the wife it’s normal to spend more on cars lol
Probably easier to use the OP’s question of:
What % of after tax income do you spend annually on cars
and ignore the red-herring net worth question.
We are the same as the OP. We buy our daily drivers outright, usually at about 3 years old or 20k miles ish, then run them until about 70-80k and change them.
We usually buy things like BMW X3’s, Mercedes C class etc.
The depreciation and running costs of these vehicles consumes around 7% of our annual household after-tax income.
Agree with the OP’s now deleted comment about the whole world seemingly driving Range Rovers and other £50-100k daily drivers.
We have numerous friends who own daily drivers worth massively more than ours, and we know for a fact their household income is considerably below ours (as they have been quite open and told us what their job pays at one time or another).
Just whatever makes you happy I suppose.
When I read about finance or personal lease deals costing £500 a month or whatever, and your household needs 2 cars, I struggle to get my head around how many households must be blasting through £12k a year just to have 2 cars on the drive, and that’s before they’ve even put fuel in them, insurance, tyres, servicing. It must be eating up serious amounts of income.
What % of after tax income do you spend annually on cars
and ignore the red-herring net worth question.
We are the same as the OP. We buy our daily drivers outright, usually at about 3 years old or 20k miles ish, then run them until about 70-80k and change them.
We usually buy things like BMW X3’s, Mercedes C class etc.
The depreciation and running costs of these vehicles consumes around 7% of our annual household after-tax income.
Agree with the OP’s now deleted comment about the whole world seemingly driving Range Rovers and other £50-100k daily drivers.
We have numerous friends who own daily drivers worth massively more than ours, and we know for a fact their household income is considerably below ours (as they have been quite open and told us what their job pays at one time or another).
Just whatever makes you happy I suppose.
When I read about finance or personal lease deals costing £500 a month or whatever, and your household needs 2 cars, I struggle to get my head around how many households must be blasting through £12k a year just to have 2 cars on the drive, and that’s before they’ve even put fuel in them, insurance, tyres, servicing. It must be eating up serious amounts of income.
Edited by Mont Blanc on Saturday 10th February 11:31
Avoiding depreciation is the trick, either by skill or luck or both.
My last 5 cars were sold for almost what I paid for them, one at a profit after a year's motoring.
I'm hoping to have been as clever/lucky with my latest purchase.
We won't, however, talk about the new Disco 3 bought in 2005 for £33k and sold 3 and bit years later for £11k.
So wiping out and more my luck with my other cars and wiping the smirk from my face if anyone brings it up
My last 5 cars were sold for almost what I paid for them, one at a profit after a year's motoring.
I'm hoping to have been as clever/lucky with my latest purchase.
We won't, however, talk about the new Disco 3 bought in 2005 for £33k and sold 3 and bit years later for £11k.
So wiping out and more my luck with my other cars and wiping the smirk from my face if anyone brings it up
If this is a genuine post, no flexing involved... then I can sort of relate. I've run a couple of sheddy Volvo's for the past three years. Nothing owed on them and I've been fortunate in that neither have given any trouble as such. So maybe costing about £1000 a year all in (fuel excluded) for insurance, tax and repairs / maintenance. I'm also a dad of two under 6's so I guess my priorities have changed and I no longer have the time or inclination for cars as a hobby and put the money into other things.
That said, one or both are nearing that stage where I'm thinking of replacing and I'm at war with myself about what do do, be it continue to "shed" and enjoy the cars being servants and not masters, whilst maintaining the sense of liberation that brings and the time / money to do other stuff... or... get something a bit nicer / quicker that'd maybe reignite my interest but it's not an easy one to call, and yes the thought of spending much more a month than I do currently on a car doesn't hugely enthuse me.
I think ultimately yes, we all gave unique circumstances and therefore there's not a right or wrong answer. Cars are tools or cars can be passions, but a car as a tool can also warrant more investment monthly on month than as car as a passion.
As long as you're happy with what you're doing, go with it.
That said, one or both are nearing that stage where I'm thinking of replacing and I'm at war with myself about what do do, be it continue to "shed" and enjoy the cars being servants and not masters, whilst maintaining the sense of liberation that brings and the time / money to do other stuff... or... get something a bit nicer / quicker that'd maybe reignite my interest but it's not an easy one to call, and yes the thought of spending much more a month than I do currently on a car doesn't hugely enthuse me.
I think ultimately yes, we all gave unique circumstances and therefore there's not a right or wrong answer. Cars are tools or cars can be passions, but a car as a tool can also warrant more investment monthly on month than as car as a passion.
As long as you're happy with what you're doing, go with it.
I reckon about 5% of net income including estimated depreciation (I bought outright) and all running costs except petrol - but I don't do mega miles and I am quite tight! 
It's also because I've owned the same car for nearly 9 years... Looking to change soon and next time the running costs will probably increase.
Edit - like you OP I have cars I would love to own, but struggle to justify a weekend car or to have a car with significant maintenance cost, or one which needs an expensive warranty... Perhaps when the kids are a bit older!
It's also because I've owned the same car for nearly 9 years... Looking to change soon and next time the running costs will probably increase.Edit - like you OP I have cars I would love to own, but struggle to justify a weekend car or to have a car with significant maintenance cost, or one which needs an expensive warranty... Perhaps when the kids are a bit older!
Edited by Hub on Saturday 10th February 08:23
Thanks for sharing your thoughts and experiences.
For reference, we own a 5 y/o XC90 and a 6y/o GLC both paid for and fairly cheap to run (if you exclude the extended manufacturer warranty we keep renewing for peace of mind)
I also own a couple of classic Land Rover series canvas tops (only £7-8k each) that cost us virtually nothing to own (£100 to insure, no road tax, no MOT, no ULEZ, no depreciation etc… and I do the service / maintenance myself)
I have a couple of other toys that are older vehicles too with limited / no depreciation.
However I would quite like to buy something a bit more precious / modern… hence the question / interest
Cheers
For reference, we own a 5 y/o XC90 and a 6y/o GLC both paid for and fairly cheap to run (if you exclude the extended manufacturer warranty we keep renewing for peace of mind)
I also own a couple of classic Land Rover series canvas tops (only £7-8k each) that cost us virtually nothing to own (£100 to insure, no road tax, no MOT, no ULEZ, no depreciation etc… and I do the service / maintenance myself)
I have a couple of other toys that are older vehicles too with limited / no depreciation.
However I would quite like to buy something a bit more precious / modern… hence the question / interest
Cheers
Davie said:
If this is a genuine post, no flexing involved... then I can sort of relate. I've run a couple of sheddy Volvo's for the past three years. Nothing owed on them and I've been fortunate in that neither have given any trouble as such. So maybe costing about £1000 a year all in (fuel excluded) for insurance, tax and repairs / maintenance. I'm also a dad of two under 6's so I guess my priorities have changed and I no longer have the time or inclination for cars as a hobby and put the money into other things.
That said, one or both are nearing that stage where I'm thinking of replacing and I'm at war with myself about what do do, be it continue to "shed" and enjoy the cars being servants and not masters, whilst maintaining the sense of liberation that brings and the time / money to do other stuff... or... get something a bit nicer / quicker that'd maybe reignite my interest but it's not an easy one to call, and yes the thought of spending much more a month than I do currently on a car doesn't hugely enthuse me.
I think ultimately yes, we all gave unique circumstances and therefore there's not a right or wrong answer. Cars are tools or cars can be passions, but a car as a tool can also warrant more investment monthly on month than as car as a passion.
As long as you're happy with what you're doing, go with it.
I've tended to buy sheddy interesting things. Sheddy Volvos are great (and I run several), but it's quite fun to have a sheddy Alfa or something for a bit of a laugh. They are generally not too expensive now either. (I try not to pay more than £1k for any sort of car) SOTW is far too easy at £2k. Just keep the Alfa in addition to the Volvo. That way you can enjoy both, and still have something reliable to waft around in. That said, one or both are nearing that stage where I'm thinking of replacing and I'm at war with myself about what do do, be it continue to "shed" and enjoy the cars being servants and not masters, whilst maintaining the sense of liberation that brings and the time / money to do other stuff... or... get something a bit nicer / quicker that'd maybe reignite my interest but it's not an easy one to call, and yes the thought of spending much more a month than I do currently on a car doesn't hugely enthuse me.
I think ultimately yes, we all gave unique circumstances and therefore there's not a right or wrong answer. Cars are tools or cars can be passions, but a car as a tool can also warrant more investment monthly on month than as car as a passion.
As long as you're happy with what you're doing, go with it.
wyson said:
OP, you aren’t accounting for people who buy their cars through ‘a business’. All the people I know well, who drive flash motors have done it through their businesses and have told me they would never spend that much using personal income.
That is absolutely true, many people do rinse their business for vehicles in one way or another, but they are still spending money that could be used for other purposes. That money is still being spent on cars, it isn’t free.Ten years ago when I ran my Mercedes E250 AMG Sport and the wife had an Alfa Mito, our costs for vehicles was very low as a percentage of income.
However, I’ve recently noticed that my motoring costs are quite high. Tax on the BMW is nearly £600 per year, insurance is £700 and the wife’s Mini consumed a big chunk of money last year in repairs.
Fortunately, I don’t have any finance agreements on any of my vehicles to consume more money.
However, I’ve recently noticed that my motoring costs are quite high. Tax on the BMW is nearly £600 per year, insurance is £700 and the wife’s Mini consumed a big chunk of money last year in repairs.
Fortunately, I don’t have any finance agreements on any of my vehicles to consume more money.
Muzzer79 said:
“Net worth”
How on earth are you calculating net worth???
I’m a middle aged bloke in the midlands, not Warren Buffet
It’s not that hard. For most people it’s pretty much house less mortgage plus cash in the bank less credit card borrowing plus any saleable assets less any borrowings on them.How on earth are you calculating net worth???
I’m a middle aged bloke in the midlands, not Warren Buffet
You can pretty much ignore most household furniture.
Although agreed it’s a bit of an odd question.
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