Purchased car value vs Income? Don't be silly!
Discussion
I know the Car Value vs Annual Income has been discussed several times over ... but this is different
IF you lease your car, then maybe comparing annual lease payments (and other running costs) vs annual income makes some sense. (Personally I wouldn't lease a car. Only use debt on appreciating assets - read any basic finance book to understand why)
On the other hand, I think it could be more interesting to look at what PH's are spending in terms of CASH purchase value vs Total Net Equity.
I'm assuming we all love cars on here. Looking at it vs net equity would be a great indicator of how much we love them versus everything else would it not?
A_K said:
I know the Car Value vs Annual Income has been discussed several times over ... but this is different
IF you lease your car, then maybe comparing annual lease payments (and other running costs) vs annual income makes some sense. (Personally I wouldn't lease a car. Only use debt on appreciating assets - read any basic finance book to understand why)
On the other hand, I think it could be more interesting to look at what PH's are spending in terms of CASH purchase value vs Total Net Equity.
I'm assuming we all love cars on here. Looking at it vs net equity would be a great indicator of how much we love them versus everything else would it not?
What you talking about Willis? IF you lease your car, then maybe comparing annual lease payments (and other running costs) vs annual income makes some sense. (Personally I wouldn't lease a car. Only use debt on appreciating assets - read any basic finance book to understand why)
On the other hand, I think it could be more interesting to look at what PH's are spending in terms of CASH purchase value vs Total Net Equity.
I'm assuming we all love cars on here. Looking at it vs net equity would be a great indicator of how much we love them versus everything else would it not?
I always thought the saying was...
If it appreciates buy it.
If it depreciates rent it.
I've never leased but guess it appeals to those with a healthy income but not so much capital?
My income is relatively low (under 30k) but thankfully I have no debt so very low monthly outgoings. If I were to lease I'd be uncomfortable with much more than 200 a month.
If it appreciates buy it.
If it depreciates rent it.
I've never leased but guess it appeals to those with a healthy income but not so much capital?
My income is relatively low (under 30k) but thankfully I have no debt so very low monthly outgoings. If I were to lease I'd be uncomfortable with much more than 200 a month.
V8 Stang said:
My Mustang cost £47K (£600/Month PCP), Salary is £40K, and my house cost £174K.
And yes over a quarter of a month's salary pays for my car! But my mortgage is only £520/Month.
Do i care when i start the mustang in the morning? NO i don't
This is the type of person I’d like to buy a beer. And yes over a quarter of a month's salary pays for my car! But my mortgage is only £520/Month.
Do i care when i start the mustang in the morning? NO i don't
For those who are yawning, just accept that this kind of question is often asked. Yawning on other’s posts is a bit like complaining about split infinitives (pointless in my view) - accept what others think is acceptable and if you’re not interested step away.
For me, this is simply about trying to validate a purchase which one (or rather one’s other half) might think is a bit extravagant given total wealth! And yes I’m sure there are readers with such huge balls that they don’t give a damn what anyone else thinks or does. I’m not one of them. I care about the norm as I believe in the theories of equilibrium and like living as a part of society. Knowing where I am versus consensus is part of my comfort zone 🥰 If you don’t give a damn about society, don’t concern yourself with letting society know that 😉
southerndriver said:
What do you mean by Net Equity here - does it include property for instance ? These days pension pots can be used more flexibly than a decade ago so they might count towards equity.
Good point. I think it should include all assets and liabilities that are liquidatable (is that even a word?) within 3 years (random yet reasonable period of car ownership). wormus said:
A_K said:
I know the Car Value vs Annual Income has been discussed several times over ... but this is different
IF you lease your car, then maybe comparing annual lease payments (and other running costs) vs annual income makes some sense. (Personally I wouldn't lease a car. Only use debt on appreciating assets - read any basic finance book to understand why)
On the other hand, I think it could be more interesting to look at what PH's are spending in terms of CASH purchase value vs Total Net Equity.
I'm assuming we all love cars on here. Looking at it vs net equity would be a great indicator of how much we love them versus everything else would it not?
What you talking about Willis? IF you lease your car, then maybe comparing annual lease payments (and other running costs) vs annual income makes some sense. (Personally I wouldn't lease a car. Only use debt on appreciating assets - read any basic finance book to understand why)
On the other hand, I think it could be more interesting to look at what PH's are spending in terms of CASH purchase value vs Total Net Equity.
I'm assuming we all love cars on here. Looking at it vs net equity would be a great indicator of how much we love them versus everything else would it not?
2 sMoKiN bArReLs said:
A_K said:
2 sMoKiN bArReLs said:
In 1996 my car was more expensive than my house. Does that count? 
Which car?! Car was a £35k Chimaera, house was a £30k dump. A_K said:
2 sMoKiN bArReLs said:
A_K said:
2 sMoKiN bArReLs said:
In 1996 my car was more expensive than my house. Does that count?
Which car?! Car was a £35k Chimaera, house was a £30k dump. 
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