What % of NET monthly salary do you spend on your car
Discussion
daemon said:
Or because it doesnt happen?
The absence of something neither proves or disproves anything with an incomplete sample. I would be extremely surprised if not one person in the entire of the UK didn't have some variant of car finance at 50% or higher of their net income. I would be just as surprised if the figures showed that was anything other than a small minority.
All the PCP quotes I've ever had do not go through an affordability survey (complete with proof) as you would go through with a modern mortgage so it would be hard to get any official figures on it. They really should do though for all types of finance, not just cars or houses.
tankplanker said:
daemon said:
Or because it doesnt happen?
The absence of something neither proves or disproves anything with an incomplete sample. I would be extremely surprised if not one person in the entire of the UK didn't have some variant of car finance at 50% or higher of their net income. I would be just as surprised if the figures showed that was anything other than a small minority.
All the PCP quotes I've ever had do not go through an affordability survey (complete with proof) as you would go through with a modern mortgage so it would be hard to get any official figures on it. They really should do though for all types of finance, not just cars or houses.
Although all the cars in the top 10 sellers can be had for £150-£250 per month.
It would be unlikely that people are only on £300 a month.
I'd say there are people who are - for whatever reason paying finance > 50% of their income - however to suggest that people on here are doing it but are afraid to say feeds into this notion that people who are on PCP / lease deals "cant really afford it".
daemon said:
True.
Although all the cars in the top 10 sellers can be had for £150-£250 per month.
It would be unlikely that people are only on £300 a month.
I'd say there are people who are - for whatever reason paying finance > 50% of their income - however to suggest that people on here are doing it but are afraid to say feeds into this notion that people who are on PCP / lease deals "cant really afford it".
A non anonymised data collection process that actively shames people for reporting outside the norm and even reporting it some cases (see boasting earlier in the thread) on a forum that is not representative of the general (car owning) population is never going to give accurate results.Although all the cars in the top 10 sellers can be had for £150-£250 per month.
It would be unlikely that people are only on £300 a month.
I'd say there are people who are - for whatever reason paying finance > 50% of their income - however to suggest that people on here are doing it but are afraid to say feeds into this notion that people who are on PCP / lease deals "cant really afford it".
The cost should be the total cost including petrol, insurance, consumables, tax, etc. Insurance can be particularly expensive if paid for monthly via the Insurer's high APR finance and you have compromised your no claims. Obviously not enough on any of the top ten most popular, but becomes more significant impact as you move up in performance.
I'd expect most offenders to be those stretching to a new 911 or similar, who have borrowed for the car, the deposit and the insurance, and are winging everything else rather than Mr Average buying a 1.0 Ecoboost Fiesta. Nothing wrong with that, unless you are meant to be putting food on the table for your kids.
tankplanker said:
I'd expect most offenders to be those stretching to a new 911 or similar, who have borrowed for the car, the deposit and the insurance, and are winging everything else rather than Mr Average buying a 1.0 Ecoboost Fiesta. Nothing wrong with that, unless you are meant to be putting food on the table for your kids.
I'd love to meet these people who supposedly exist out there. I dont know of any. Maybe i just live in a nice part of the world were people dont feel they *have* to do that. 
I had a friend who brought a brand new Escort RS Cosworth when they first came out. While it was far from 50% of his net income it was far more than it should have been of his available income. The poor car wasn't serviced in three years, had a scrape on the front wing from a parking accident that was left unfixed to avoid insurance premium increases, and was just very tatty at the end of three years of ownership from new. All because he really wanted the car not because he was trying to keep up with anybody else.
I'm thinking of spending big when my kids move out and I've finished paying the mortgage in the next five years. It'll be for a far higher than sensible percentage of my income and won't be PCP (likely extend my mortgage just before the current principle for the house is paid off as its flexible and only 0.5% over base rate) as I want to own it outright as I'll be keeping it long term.
I think the trick is to keep a sensible percentage of your income as left over funds to be saved/invested each month, the amount you spend on a car is irrelevant as long as you have clear breathing space each month.
I'm thinking of spending big when my kids move out and I've finished paying the mortgage in the next five years. It'll be for a far higher than sensible percentage of my income and won't be PCP (likely extend my mortgage just before the current principle for the house is paid off as its flexible and only 0.5% over base rate) as I want to own it outright as I'll be keeping it long term.
I think the trick is to keep a sensible percentage of your income as left over funds to be saved/invested each month, the amount you spend on a car is irrelevant as long as you have clear breathing space each month.
tankplanker said:
I think the trick is to keep a sensible percentage of your income as left over funds to be saved/invested each month, the amount you spend on a car is irrelevant as long as you have clear breathing space each month.
THIS 100% ... We were lucky enough to pay our house off when I was 31 (now 33) which was a decent monthly chunk gained straight away ... I like to have at least 30-40% of my income in a 'rainy day' pot as you can guarantee when it rains it doesnt drizzle, it pisses down! tankplanker said:
he absence of something neither proves or disproves anything with an incomplete sample.
I would be extremely surprised if not one person in the entire of the UK didn't have some variant of car finance at 50% or higher of their net income. I would be just as surprised if the figures showed that was anything other than a small minority.
All the PCP quotes I've ever had do not go through an affordability survey (complete with proof) as you would go through with a modern mortgage so it would be hard to get any official figures on it. They really should do though for all types of finance, not just cars or houses.
But the actual risk is low, the amount they would lose is negligible as they can reposes an easily sellable item. I would be extremely surprised if not one person in the entire of the UK didn't have some variant of car finance at 50% or higher of their net income. I would be just as surprised if the figures showed that was anything other than a small minority.
All the PCP quotes I've ever had do not go through an affordability survey (complete with proof) as you would go through with a modern mortgage so it would be hard to get any official figures on it. They really should do though for all types of finance, not just cars or houses.
It's a market place and it would be a brave company to be the first ones to ask dealers to qualify with a 2 hour questionnaire.
'I'd like that corsa.'
'How many times a month do you eat out?'
talksthetorque said:
But the actual risk is low, the amount they would lose is negligible as they can reposes an easily sellable item.
It's a market place and it would be a brave company to be the first ones to ask dealers to qualify with a 2 hour questionnaire.
'I'd like that corsa.'
'How many times a month do you eat out?'
It would have to be made a requirement by the ombudsman, they'll never self regulate without legal pressure. Its nothing to do with the load being secured or unsecured but reducing the amount of credit issued inappropriately. I'm not a fan of regulation for regulation sake but when a significant proportion of the population isn't saving and has significant household debt it shows that the industry needs tighter regulation. Obviously cutting off a broad chunk of consumer spending that is fueled by inappropriate debt has other repercussions but I'm not a fan of the house of cards that are current economy is built on anyway and it needs changing.It's a market place and it would be a brave company to be the first ones to ask dealers to qualify with a 2 hour questionnaire.
'I'd like that corsa.'
'How many times a month do you eat out?'
tankplanker said:
talksthetorque said:
But the actual risk is low, the amount they would lose is negligible as they can reposes an easily sellable item.
It's a market place and it would be a brave company to be the first ones to ask dealers to qualify with a 2 hour questionnaire.
'I'd like that corsa.'
'How many times a month do you eat out?'
It would have to be made a requirement by the ombudsman, they'll never self regulate without legal pressure. Its nothing to do with the load being secured or unsecured but reducing the amount of credit issued inappropriately. I'm not a fan of regulation for regulation sake but when a significant proportion of the population isn't saving and has significant household debt it shows that the industry needs tighter regulation. Obviously cutting off a broad chunk of consumer spending that is fueled by inappropriate debt has other repercussions but I'm not a fan of the house of cards that are current economy is built on anyway and it needs changing.It's a market place and it would be a brave company to be the first ones to ask dealers to qualify with a 2 hour questionnaire.
'I'd like that corsa.'
'How many times a month do you eat out?'
Granfondo said:
But but but daemon said nobody is borrowing to much,so which is it?
I think a very small percentage are borrowing more than they should.Thats bourne out when you look at what makes up the bulk of car sales - theres nothing terribly fancy in the top 10 biggest sellers.
And really, whats the worst can happen? They hand the car back early under a VT, or they trade it in for something cheaper or - very rarely - it gets repossessed. If thats the worst thing that happens someone over the course of their entire life, it would be a happy one wouldnt it?
tankplanker said:
t would have to be made a requirement by the ombudsman, they'll never self regulate without legal pressure. Its nothing to do with the load being secured or unsecured but reducing the amount of credit issued inappropriately. I'm not a fan of regulation for regulation sake but when a significant proportion of the population isn't saving and has significant household debt it shows that the industry needs tighter regulation. Obviously cutting off a broad chunk of consumer spending that is fueled by inappropriate debt has other repercussions but I'm not a fan of the house of cards that are current economy is built on anyway and it needs changing.
Surely PCP, lease and regular HP deals are credit checked against the individual anyway? Granfondo said:
But but but daemon said nobody is borrowing to much,so which is it?
Tell you what - saying as you're doing nothing else - get them to let you sit near a window in your retirement home and do a sample of the next 50 cars that go buy and tell us how many shiny brand new Audis or BMWs drive by.I would say very few.
daemon said:
Granfondo said:
But but but daemon said nobody is borrowing to much,so which is it?
Tell you what - saying as you're doing nothing else - get them to let you sit near a window in your retirement home and do a sample of the next 50 cars that go buy and tell us how many shiny brand new Audis or BMWs drive by.I would say very few.
Granfondo said:
daemon said:
Granfondo said:
But but but daemon said nobody is borrowing to much,so which is it?
Tell you what - saying as you're doing nothing else - get them to let you sit near a window in your retirement home and do a sample of the next 50 cars that go buy and tell us how many shiny brand new Audis or BMWs drive by.I would say very few.
Hows the '05 BMW?
daemon said:
Granfondo said:
daemon said:
Granfondo said:
But but but daemon said nobody is borrowing to much,so which is it?
Tell you what - saying as you're doing nothing else - get them to let you sit near a window in your retirement home and do a sample of the next 50 cars that go buy and tell us how many shiny brand new Audis or BMWs drive by.I would say very few.
Hows the '05 BMW?
Gassing Station | General Gassing | Top of Page | What's New | My Stuff