Family spend on cars - advice?
Discussion
You're talking about the purchase price of the two cars.
However I'd suggest thinking about the total cost of ownership. For example, you could have an older car that cost less to buy, but carries a higher cost of repairs, fuel, maybe ULEZ daily charges etc. Over five years of ownership, the cheaper car could end up costing you about the same all-in. On the other hand, a special car could end up being worth more when you sell it, paying back some or all of the maintenance cost. After all, the lowest cost car ownership ever was Rowan Atkinson's McLaren F1, which cost him negative several million pounds overall. So you can see that just looking at the price you paid for the car doesn't really illustrate the impact it ends up having on your family finances.
The other thing is that knowing your gross income doesn't really show how much you can "afford" to spend on cars, because it depends on other outgoings too. For example, take two families with the same income but one who's just had to remortgage at 6% vs one who's still on a fixed rate at 1.5% for a few more years, the latter can probably afford to spend more on cars.
So unfortunately it's really hard to give much meaningful advice.
dibblecorse said:
You have a gross annual income of 130k and are still borrowing from your parents ? Or are these cash gifts to run down IHT on the tapered tax relief scheme ?
Regards the 320d, how often will it get a decent run as if its just shuffling round London you'll do it no favours.
130K a year and you have to ask a forum if it is right or wrong FFS Kids today! Regards the 320d, how often will it get a decent run as if its just shuffling round London you'll do it no favours.
TheRainMaker said:
passport010 said:
Does this seem about right?
That all depends on you.No one on here can answer that question.
OP - will a 2016 diesel be compliant? I haven't looked at the list in a while but I had it in my head most diesels over a few years old will be charged.
It's a pointless conversation without knowing your other living costs.
I once bought a car which cost around 25% more than my annual salary at the time. Ran it for two years.
Currently I have a car that cost about 40% of my annual salary.
There is no direct answer or formula, but I would say that you should be able to afford to run two nice, new'ish cars on a combined income of £130k a year unless you have a crippling mortgage or 15 children.
I once bought a car which cost around 25% more than my annual salary at the time. Ran it for two years.
Currently I have a car that cost about 40% of my annual salary.
There is no direct answer or formula, but I would say that you should be able to afford to run two nice, new'ish cars on a combined income of £130k a year unless you have a crippling mortgage or 15 children.
Would perhaps avoid leggy 2 litre diesel BMWs if you want a quiet life, engines can be a bit unreliable with cam chains going at higher mileages, and unless you do regular longer journeys there is all that DPF stuff to contend with.
Japanese petrol engine for longevity, depends on ULEZ eligibility of course.
Japanese petrol engine for longevity, depends on ULEZ eligibility of course.
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