Appropriate salary to buy a Supercar

Appropriate salary to buy a Supercar

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Discussion

Kent Border Kenny

Original Poster:

2,219 posts

59 months

Tuesday 20th October 2020
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This is the flip side of the other salary question running at the moment, asking how much you need to be happy, as there seemed a bit of a mis-match between the average earnings and the value of the cars that posters have.

So, looking at things in the other direction, and forgetting the occasional outlier who lives in a bedsit and borrows five years' salary to buy one, what would people think would be the low-end salary for buying a lightly used £200k sports car such as a 720s Spider, or a pre-reg M5 at £80k.

I'd have thought that no-one would look at the McLaren (again, other than the odd (very odd) person who'll risk everything and only just scrape together the monthly payments) unless they were on £300k+, but are there people buying them on £100k per year and just accepting that nearly half of their significant post-tax income will go on depreciation and running costs? Again, the salaries that people mention, and the cars that they have suggest that I'm possibly way off on my estimates.

By comparison, I was relatively well paid in my 20s (graduate in an investment bank) on £35k (a long time ago) and despite having few expensive tastes, and a modest flat to live in, still wasn't comfortable spending more than £15k on my first Elise.

Bloxxcreative

513 posts

44 months

Tuesday 20th October 2020
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It's all personal taste and life priorities.

Could you do it on 30k living at home or renting a room for 200 a month somewhere. Probably if you had enough down-payment. Could you do it on 50k as a sole earner and a house mortgaged or rented. Unlikely.

In theory, on 65k based purely on monthlies and a 1.5k outgoing for mortgage/rent/bills, you probably could, but you'd have little money for else. But then if that makes you happy and you're certain you'd have that for the long term incoming. But then if you're mortgage is 300 a month you could get by on a lot lower than 65k.

Not much help really.

Countdown

39,687 posts

195 months

Tuesday 20th October 2020
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How long is a piece of string?

I know 2 lads - one runs an M3 when he earns £20k a year, one runs a Continental GT and earns £25k a year. Equally I know somebody on £80k running a 3 year old A6 Avant.

I do hope this doesn't turn into another willy waving thread.................

Darth Paul

1,652 posts

217 months

Tuesday 20th October 2020
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When I went to shelsley Walsh for the super car event last year I was surprised by how many mclarens were there. When I got back a quick google showed what the pcp deals where. Quite reasonable in the scheme of things. Still way above my pay grade, but I can imagine a fair few 6 figure salary types could easily afford it. The deposit is probably 1 to 1 1/2 yearly bonus, and the monthly’s are within reach, particularly if you’ve no mortgage.

Kent Border Kenny

Original Poster:

2,219 posts

59 months

Tuesday 20th October 2020
quotequote all
Darth Paul said:
When I went to shelsley Walsh for the super car event last year I was surprised by how many mclarens were there. When I got back a quick google showed what the pcp deals where. Quite reasonable in the scheme of things. Still way above my pay grade, but I can imagine a fair few 6 figure salary types could easily afford it. The deposit is probably 1 to 1 1/2 yearly bonus, and the monthly’s are within reach, particularly if you’ve no mortgage.
If the six figures was £600k then it seems pretty reasonable, but if £100k then surely it’s a stretch.

PrinceRupert

11,574 posts

84 months

Tuesday 20th October 2020
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I suspect plenty could afford it if they didn't go mad on the mortgage and private school fees and were willing to forego decent savings/pensions.

Darth Paul

1,652 posts

217 months

Tuesday 20th October 2020
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Kent Border Kenny said:
Darth Paul said:
When I went to shelsley Walsh for the super car event last year I was surprised by how many mclarens were there. When I got back a quick google showed what the pcp deals where. Quite reasonable in the scheme of things. Still way above my pay grade, but I can imagine a fair few 6 figure salary types could easily afford it. The deposit is probably 1 to 1 1/2 yearly bonus, and the monthly’s are within reach, particularly if you’ve no mortgage.
If the six figures was £600k then it seems pretty reasonable, but if £100k then surely it’s a stretch.
Depends really. 100k gives you what, 5.5k take home? If you’re say in your late 50’s, no mortgage, kids moved out then why not. Quick google (admittedly a few years out of date) shows a 540c is about £35k down and £1k a month. Easily within range. Even if you were dropping 1.5-2k on a mortgage, another 1k on a car if it’s your hobby isn’t outside the realms of possibility.

sealtt

3,091 posts

157 months

Tuesday 20th October 2020
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So in other words you are asking how much to have a lifestyle that matches the car - I.e. very nice house, private school for kids, always eating well... let’s say living well.

dimots

3,012 posts

89 months

Tuesday 20th October 2020
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A £200k car is offensively indulgent no matter how much you earn.

roadsmash

2,622 posts

69 months

Tuesday 20th October 2020
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Here we go again!

bristolbaron

4,756 posts

211 months

Tuesday 20th October 2020
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I don’t think salary comes into it as much as net worth. Being able to make the payments and being comfortable losing £70k over three years are very different things!

Sten.

2,184 posts

133 months

Tuesday 20th October 2020
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I know a few supercar owners and none of them receive a salary.

bennno

11,502 posts

268 months

Tuesday 20th October 2020
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Darth Paul said:
Depends really. 100k gives you what, 5.5k take home? If you’re say in your late 50’s, no mortgage, kids moved out then why not. Quick google (admittedly a few years out of date) shows a 540c is about £35k down and £1k a month. Easily within range. Even if you were dropping 1.5-2k on a mortgage, another 1k on a car if it’s your hobby isn’t outside the realms of possibility.
I bought a 14 month old 3k mile used 540c and paid £25k deposit and £700 month. Dealer was offering me a new one for same monthly’s but car was almost 1.6x the price and would therefore cost way more to own - easy trap to fall in to.

For me it all depends on your outgoings, if your mortgage isn’t daft, if your house is furnished, doesn’t need work, you don’t have credit cards or personal loans then £20k + £800 month could put you in something very nice. Bought well you’d also potentially get most of your £20k back.

You only live once, the local lambo dealer had its best month ever post covid.

valiant

10,066 posts

159 months

Wednesday 21st October 2020
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Buying a supercar is one thing but running it is another.

Yes, you could do the man maths and with a squint you could work out that you could afford to buy it but would a set of tyres cripple you? What about a clutch? You’d have to factor in a few thousand every year for keeping it in tip top condition and probably have to have a decent bork fund to counter unexpected stuff.

likesachange

2,630 posts

193 months

Wednesday 21st October 2020
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It’s an interesting subject for us poorer dreamers tbh.

I often wonder if I will ever be able to afford a 80-100k “Supercar” on my earnings...

I suspect I possibly could if said supercar was a very slow depreciater... so at least then a good percentage of the monthlies was turning into equity. (I realise without a crystal ball it’s impossible to predict.) I mean just look at how many people on the roads don’t flinch at spending 4-500 a month on a mundane daily that will literally have Zero equity after 3/4years.

My in-laws who are very sensible with there money and never buy anything exciting and very risk averse... mentioned how stupid I was daily when I decided to buy a TVR Tuscan 2S and again when I bought an Ariel Atom. (Both without Test driving). Yet by time I sold them I was £8000 better off while they were prob £7000 worse off buying there C220!



Shnozz

27,418 posts

270 months

Wednesday 21st October 2020
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Darth Paul said:
Depends really. 100k gives you what, 5.5k take home? If you’re say in your late 50’s, no mortgage, kids moved out then why not. Quick google (admittedly a few years out of date) shows a 540c is about £35k down and £1k a month. Easily within range. Even if you were dropping 1.5-2k on a mortgage, another 1k on a car if it’s your hobby isn’t outside the realms of possibility.
From threads on here, I’m surprised how many people say their car finance is a greater payment each month as against their mortgage.

StevieBee

12,790 posts

254 months

Wednesday 21st October 2020
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Sten. said:
I know a few supercar owners and none of them receive a salary.
Very much this!

Dividends, bonuses investments, sale of business, inheritance..... I can't think of any profession that would afford a basic salary to a level that would enable the purchase (and running) of a supercar without requiring the owner to live in the car itself.

2 GKC

1,884 posts

104 months

Wednesday 21st October 2020
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StevieBee said:
Very much this!

Dividends, bonuses investments, sale of business, inheritance..... I can't think of any profession that would afford a basic salary to a level that would enable the purchase (and running) of a supercar without requiring the owner to live in the car itself.
There’s plenty

Zetec-S

5,832 posts

92 months

Wednesday 21st October 2020
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bennno said:
I bought a 14 month old 3k mile used 540c and paid £25k deposit and £700 month. Dealer was offering me a new one for same monthly’s but car was almost 1.6x the price and would therefore cost way more to own - easy trap to fall in to.

For me it all depends on your outgoings, if your mortgage isn’t daft, if your house is furnished, doesn’t need work, you don’t have credit cards or personal loans then £20k + £800 month could put you in something very nice. Bought well you’d also potentially get most of your £20k back.

You only live once, the local lambo dealer had its best month ever post covid.
Interesting post, thank you. Didn't realise how "affordable" they actually were (having never looked before).

I imagine 1000's of households up and down the country are paying more than £700/800 per month financing a couple of fairly mundane rep-mobiles or school-run SUV's. Indeed, myself and Mrs ZS have our Focus ST/Clubman Cooper S on finance, albeit for significantly less than those monthlies, but it does make me think... scratchchin

... just need to convince her that we'd be better off shedding it, and plowing our savings into a slightly used supercar biglaugh

PrinceRupert

11,574 posts

84 months

Wednesday 21st October 2020
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StevieBee said:
Very much this!

Dividends, bonuses investments, sale of business, inheritance..... I can't think of any profession that would afford a basic salary to a level that would enable the purchase (and running) of a supercar without requiring the owner to live in the car itself.
I'm sure the partners at my firm could afford one raking in 1 to 3m a year. Technically not salary but the same idea.