Appropriate salary to buy a Supercar
Discussion
okgo said:
How does someone save for a deposit in the first place while living a good life and going on holidays on 45k?
Wouldn't it all be easier to just admit he got given the money, making the salary a moot point, which is the point of this (albeit silly) thread?
Quite easily.Wouldn't it all be easier to just admit he got given the money, making the salary a moot point, which is the point of this (albeit silly) thread?
I saved the deposit for my flat while earning less than £20k.
Its all about priority, isnt it?
If youre not happy with with £500 summer holidays, want the latest iphone and want take away 2 times a week, you probably wont be able to a afford a supercar on an average salary.
If youre prepared to make a few sacrifices, you can get the supercar.
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Granted, its not a supercar (just a very quick sports car) but i run my Corvette on £38k a year, aswell as paying off my mortgage and sticking £800 per month into my investment ISA.
If in 5 years time i decide i want a McLaren, i could sell everything in my ISA, with draw the cash, buy the car and keep the £800 payments to maintain it. In what way is that unrealistic?
Deep Thought said:
I think a supercar can be run on a reasonable salary - as has been demonstrated here.
To make it most viable it seems to require
Good points DT.To make it most viable it seems to require
- determination
- a likely original funding source - perhaps built from equity in other cars, savings, property equity or inheritance, etc.
- enough knowledge gathered to buy the right car at the right price
- an element of luck
Worst scenario would be trying to run a rapidly ageing supercar on a budget. The regularity and ease of such vehicles to regularly throw up unexpected huge bills should never be underestimated.
Timing of purchase decisions is also crucial imo as most are subject to huge seasonal price fluctuations .
Buying the right spec car is also crucial as generally speaking the best and most suitably specced cars (as opposed to the highest often ott spec) always sell at the highest prices anytime, summer or winter.
Finally as you rightly say the the correct car choice is crucial to avoid major eye watering depreciation which is the main cost for most people.
Prime example would be no-one would buy say a lightly used late model 720S over e.g. a Hurracan Performante if avoiding major depreciation was high on their priorities list.
Interesting topic.
When I was on a salary of about £50k and wife was on the same, I used to dream about the car I would buy (finance) if I had more money, how much could I afford each month etc.
Then I gave up work to start a business, took a few years before I saw much of a return, then we had a daughter and my wife stopped working.
Now business is good, dividends are good, wife is pregnant again and I find myself talking to my accountant about the most tax efficient way to run an electric car whilst looking at houses with an extra bedroom and a bigger garden. Total change in priorities and a total change in what I think about customers/suppliers and neighbours thinking of me.
I've got friends who must be on £100k+ but none of them have anything out of the ordinary car wise despite a few of them really being into cars.
Of all my immediate friends and family, the only people I know with £100k+ cars are 60+ years old, no kids, mortgage paid off, retired. Most of the people I know driving around in the newer German cars are those with the lowest paid jobs.
In short, I don't think there's actually an answer to this question as no two circumstances are totally equal.
When I was on a salary of about £50k and wife was on the same, I used to dream about the car I would buy (finance) if I had more money, how much could I afford each month etc.
Then I gave up work to start a business, took a few years before I saw much of a return, then we had a daughter and my wife stopped working.
Now business is good, dividends are good, wife is pregnant again and I find myself talking to my accountant about the most tax efficient way to run an electric car whilst looking at houses with an extra bedroom and a bigger garden. Total change in priorities and a total change in what I think about customers/suppliers and neighbours thinking of me.
I've got friends who must be on £100k+ but none of them have anything out of the ordinary car wise despite a few of them really being into cars.
Of all my immediate friends and family, the only people I know with £100k+ cars are 60+ years old, no kids, mortgage paid off, retired. Most of the people I know driving around in the newer German cars are those with the lowest paid jobs.
In short, I don't think there's actually an answer to this question as no two circumstances are totally equal.
AB said:
Interesting topic.
In short, I don't think there's actually an answer to this question as no two circumstances are totally equal.
The responses are interesting indeed and there is no one answer. I know people on around 100k with McLarens and new vantages but the people buying the new supercars are really rolling in it (business owners with good returns). I know one guy contracting with a proper 200k supercar and that is from inheritance cash. In short, I don't think there's actually an answer to this question as no two circumstances are totally equal.
It all still is hugely regional.
What lord vader mentions about his workplace you would not find in any workplace in London, despite the fact they'd all be earning more money. Priorities very different, myself included. I like cars, but buying a house was more interesting that driving around in every pound I had to my name.
What lord vader mentions about his workplace you would not find in any workplace in London, despite the fact they'd all be earning more money. Priorities very different, myself included. I like cars, but buying a house was more interesting that driving around in every pound I had to my name.
You should have seen it in Germany!
Middle management was €120k (ish), entry level was €60k (plus bits), i was taking lads on fresh from Uni running all sorts of tidy cars. Still relatively low living costs too.
The car park was a plethora of Porsche and Mercedes, (factory in the city I was based in).
Not sure where you’ve worked okgo (I assume only London), but most businesses I’ve been to within the UK (never mind globally) within aerospace / defence always seem to have car parks with a fair few tidy cars, apart from the one factory in Dartford I went too.
Middle management was €120k (ish), entry level was €60k (plus bits), i was taking lads on fresh from Uni running all sorts of tidy cars. Still relatively low living costs too.
The car park was a plethora of Porsche and Mercedes, (factory in the city I was based in).
Not sure where you’ve worked okgo (I assume only London), but most businesses I’ve been to within the UK (never mind globally) within aerospace / defence always seem to have car parks with a fair few tidy cars, apart from the one factory in Dartford I went too.
g3org3y said:
phumy said:
I run my Aston V12 on my pension, i dont know what you all find so difficult.
Presumably by the time you reach pension age, all the big overheads (mortgage, private school fees etc) are done so much more free cash?
Kent Border Kenny said:
PrinceRupert said:
Absolutely, if you don't buy breakfast and lunch you can easily afford a supercar on 30k.
The £25 per day mentioned is over £6,000 per year. That’s not Bugatti money, but it’ll definitely cover a DB9, or an R8.jakesmith said:
Not sure about that. You can only get a personal loan up to £25k and those cars are a bit more than that. So if you’re buying with dealer finance you’re talking higher APRs and maximum terms of 3-4 years. Running costs of those cars are several £k per year. And they’re not supercars either. £30k a year is take home of what £1800 a month. Whilst it is theoretically possible to shoehorn into an expensive car that then can’t be properly maintained at that level, I doubt many do. That’s why PCP and S-Line, MSport and AMG line are so popular. Get a car that looks like an M4 etc but can be insured and run for much much less. You used to be able to buy a Ferrari for £25k, my mate got a 348 for £25k and sold it for £25k a year later without spending a penny on it apart from fuel. those days are long gone.
Thats back to one of my points on the previous page about how its possible on a relatively normal wage.You need some initial funding source. To buy a supercar solely on finance, pay interest charges and manage a monthly payment on top of all the other costs becomes prohibitive.
phumy said:
Exactly but no private school fees anyway. Bought it cash 16 months ago and now looked after by my pension, its easy.
I recon am 20 years to state retirement - maybe longer given the long term financial impact of COVID. But at least in a few years time the mortgage will be at a 'reasonable' level, well low enough for me not to worry at all about interest rates. Luckily no private school fees for at least 5 years to worry about. I look forwards to been in your position come 2040
.Deep Thought said:
jakesmith said:
Not sure about that. You can only get a personal loan up to £25k and those cars are a bit more than that. So if you’re buying with dealer finance you’re talking higher APRs and maximum terms of 3-4 years. Running costs of those cars are several £k per year. And they’re not supercars either. £30k a year is take home of what £1800 a month. Whilst it is theoretically possible to shoehorn into an expensive car that then can’t be properly maintained at that level, I doubt many do. That’s why PCP and S-Line, MSport and AMG line are so popular. Get a car that looks like an M4 etc but can be insured and run for much much less. You used to be able to buy a Ferrari for £25k, my mate got a 348 for £25k and sold it for £25k a year later without spending a penny on it apart from fuel. those days are long gone.
Thats back to one of my points on the previous page about how its possible on a relatively normal wage.You need some initial funding source. To buy a supercar solely on finance, pay interest charges and manage a monthly payment on top of all the other costs becomes prohibitive.
gangzoom said:
phumy said:
Exactly but no private school fees anyway. Bought it cash 16 months ago and now looked after by my pension, its easy.
I recon am 20 years to state retirement - maybe longer given the long term financial impact of COVID. But at least in a few years time the mortgage will be at a 'reasonable' level, well low enough for me not to worry at all about interest rates. Luckily no private school fees for at least 5 years to worry about. I look forwards to been in your position come 2040
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